Broadcom (NASDAQ:AVGO) Trading 0.5% Higher - What's Next?

On Friday, Broadcom Inc. (NASDAQ:AVGO) saw its shares increase by 0.5%. The stock reached a high of $182.71 during the trading session and closed at $182.39. The volume of shares traded was 4,756,222, which is significantly lower than the average session volume of 30,601,725 shares. Prior to this, the stock had a closing price of $181.53.

Analyst Ratings Changes

A number of research analysts have recently updated their ratings on Broadcom's stock. For instance, Oppenheimer lowered their target price from $2,000.00 to $200.00 while maintaining an "outperform" rating. Similarly, JPMorgan Chase & Co. raised their target from $200.00 to $210.00 and rated the stock as "overweight". Morgan Stanley and Rosenblatt Securities also adjusted their price objectives to $180.00 and $240.00, respectively, with ratings of "overweight" and "buy." Bank of America increased their price target from $200.00 to $215.00 while continuing to encourage a "buy" stance on the stock. Overall, there are two hold ratings, twenty-four buy ratings, and one strong buy rating from analysts. The consensus rating is a "Moderate Buy" with a price target average of $191.54.

Broadcom Price Performance

Broadcom has a current ratio of 1.04, a quick ratio of 0.94, and a debt-to-equity ratio of 1.02. The stock has a fifty-day moving average of $165.88 and a two-hundred-day moving average of $152.92. With a market capitalization of $835.55 billion, the PE ratio stands at 7.84, and the PEG ratio is 2.99, indicating a solid position in the market as per analysts. According to the latest earnings report from September 5th, Broadcom reported earnings per share (EPS) of $1.24, surpassing the consensus estimate of $1.20. Revenue for the quarter was $13.07 billion compared to an expectation of $12.98 billion, reflecting a year-over-year revenue increase of 47.3%.

Broadcom Increases Dividend

The company has also raised its quarterly dividend, which was paid out on September 30th. Shareholders on record as of September 19th received $0.53 per share, marking an increase from the previous dividend. This translates to an annual dividend of $2.12 with a yield of 1.18%. Currently, Broadcom's payout ratio is 9.12%.

Insiders Place Their Bets

In recent insider news, Director Gayla J. Delly sold 750 shares on September 25th at an average price of $174.53, totaling around $130,897.50. Post-transaction, she retains 34,750 shares valued at approximately $6,064,917.50. Additionally, CEO Hock E. Tan sold 50,000 shares on September 17th for $8,168,500. Following this sale, he holds 1,331,910 shares valued at $217,594,136.70. Overall, insiders have sold about 311,080 shares worth $53,540,590 in the last three months, holding onto 2.00% of the company’s stock overall.

Hedge Funds Weigh In On Broadcom

Large investors are also showing interest in Broadcom. Legend Financial Advisors Inc. increased its stake by 72.7% in the first quarter, bringing their total to 19 shares valued at $25,000. Richardson Capital Management LLC also purchased a new stake worth $29,000. Delta Asset Management and Redmont Wealth Advisors have augmented their holdings significantly in the first quarter, and Tsfg LLC raised its stake by 1,073.7% last quarter to own 223 shares valued at $38,000. In total, institutional investors own 76.43% of Broadcom's stock.

About Broadcom

Broadcom Inc. specializes in designing, developing, and supplying a variety of semiconductor devices, focusing on integrated circuits and related technologies. The company operates across two main segments: Semiconductor Solutions and Infrastructure Software.

Final Thoughts

As Broadcom continues to show positive growth and solid performance metrics, investors may be considering whether this is a good time to buy. Analyst recommendations appear favorable, alongside increasing dividends, a strong earnings report, and significant interest from hedge funds and institutional investors.

Broadcom, Stocks, Investment