Broadcom Inc. (NASDAQ:AVGO) Receives Consensus Rating of “Buy” from Brokerages

Broadcom Inc. (NASDAQ:AVGO) has received an average rating of “Buy” from the thirty-three research firms that are currently covering the stock, Marketbeat reports. One investment analyst has rated the stock with a hold recommendation, twenty-nine have assigned a buy recommendation and three have issued a strong buy recommendation on the company. The average 12 month target price among brokerages that have updated their coverage on the stock in the last year is $436.3333.

Several equities research analysts have issued reports on AVGO shares. Oppenheimer increased their target price on Broadcom from $435.00 to $450.00 and gave the stock an “outperform” rating in a research report on Friday, December 12th. Wall Street Zen raised shares of Broadcom from a “hold” rating to a “buy” rating in a report on Saturday, December 13th. Sanford C. Bernstein restated an “outperform” rating and set a $475.00 price target (up from $400.00) on shares of Broadcom in a research report on Friday, December 12th. Macquarie initiated coverage on Broadcom in a research report on Monday, September 15th. They issued an “outperform” rating and a $420.00 price objective on the stock. Finally, Truist Financial lifted their price objective on Broadcom from $500.00 to $510.00 and gave the company a “buy” rating in a research note on Friday, December 19th.

Broadcom Price Performance

Shares of NASDAQ:AVGO opened at $352.13 on Friday. The firm has a market capitalization of $1.67 trillion, a PE ratio of 73.98, a P/E/G ratio of 1.21 and a beta of 1.19. The company has a quick ratio of 1.58, a current ratio of 1.71 and a debt-to-equity ratio of 0.76. The company has a 50-day moving average price of $362.74 and a two-hundred day moving average price of $324.51. Broadcom has a twelve month low of $138.10 and a twelve month high of $414.61.

Broadcom (NASDAQ:AVGO) last announced its quarterly earnings results on Thursday, December 11th. The semiconductor manufacturer reported $1.95 EPS for the quarter, beating analysts’ consensus estimates of $1.87 by $0.08. Broadcom had a net margin of 36.20% and a return on equity of 37.45%. The company had revenue of $18.02 billion for the quarter, compared to analysts’ expectations of $17.46 billion. During the same period in the prior year, the company posted $1.42 EPS. Broadcom’s revenue was up 28.2% compared to the same quarter last year. Equities analysts forecast that Broadcom will post 5.38 EPS for the current year.

Broadcom Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 31st. Stockholders of record on Monday, December 22nd will be issued a dividend of $0.65 per share. The ex-dividend date of this dividend is Monday, December 22nd. This is a positive change from Broadcom’s previous quarterly dividend of $0.59. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. Broadcom’s payout ratio is presently 54.62%.

Insider Buying and Selling

In related news, CEO Hock E. Tan sold 130,000 shares of the firm’s stock in a transaction that occurred on Thursday, December 18th. The shares were sold at an average price of $326.02, for a total value of $42,382,600.00. Following the sale, the chief executive officer directly owned 595,638 shares of the company’s stock, valued at $194,189,900.76. This trade represents a 17.92% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Mark David Brazeal sold 38,281 shares of Broadcom stock in a transaction that occurred on Wednesday, December 17th. The shares were sold at an average price of $327.65, for a total transaction of $12,542,769.65. Following the sale, the insider owned 266,494 shares of the company’s stock, valued at approximately $87,316,759.10. The trade was a 12.56% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 524,780 shares of company stock valued at $195,499,150 in the last 90 days. 2.00% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Sawyer & Company Inc raised its holdings in shares of Broadcom by 62.1% during the 2nd quarter. Sawyer & Company Inc now owns 94 shares of the semiconductor manufacturer’s stock valued at $26,000 after buying an additional 36 shares in the last quarter. JCIC Asset Management Inc. bought a new position in Broadcom during the third quarter valued at approximately $31,000. Longfellow Investment Management Co. LLC purchased a new position in shares of Broadcom during the second quarter worth approximately $27,000. Teachers Insurance & Annuity Association of America bought a new stake in shares of Broadcom in the 2nd quarter worth approximately $28,000. Finally, Legend Financial Advisors Inc. purchased a new stake in shares of Broadcom in the 2nd quarter valued at $28,000. Institutional investors own 76.43% of the company’s stock.

About Broadcom

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops and supplies semiconductor and infrastructure software solutions for a broad range of markets. The company’s semiconductor business provides components and systems for wired and wireless communications, enterprise and cloud storage, networking and broadband access, serving original equipment manufacturers, cloud service providers, telecommunications carriers and industrial customers worldwide. Broadcom is headquartered in Irvine, California, and operates globally with research, development and sales organizations across North America, Europe and Asia.

On the semiconductor side, Broadcom’s portfolio includes system-on-chip (SoC) and application-specific integrated circuit (ASIC) solutions, radio-frequency and connectivity components, Ethernet switching and PHY devices, storage adapters and controllers, optical transceivers and other networking silicon.