Broadcom Inc. Experiences Notable Reduction in Short Interest

Broadcom Inc. (NASDAQ:AVGO) has seen a substantial decline in short interest during December. As of December 31, the total short interest stood at 56,950,000 shares, reflecting a significant decrease of 16.9% compared to the figure of 68,550,000 shares from December 15. The average daily trading volume of the stock is 28,120,000 shares, resulting in a days-to-cover ratio of 2.0 days.

Analysts' Growth Projections

Broadcom has been the subject of various research reports from market analysts. Susquehanna raised its price target from $200.00 to $225.00 and assigned a "positive" rating in a report released on December 13. On December 11, Rosenblatt Securities reiterated a "buy" rating and set a price target of $240.00 for the stock. Citigroup also increased its price objective from $175.00 to $205.00, giving the stock a "buy" rating in a note published on December 10. Furthermore, Barclays adjusted its target price from $200.00 to $205.00 on December 16, maintaining an "overweight" rating. Deutsche Bank followed suit by raising its price target from $190.00 to $240.00, with a "buy" rating on December 13. Of the analysts, three have rated the stock as a hold while twenty-four have issued buy ratings, leading to an average rating of "Moderate Buy" and a consensus target price of $223.54 according to MarketBeat.

Insider Transactions

In other news, recent insider trading has occurred within Broadcom. Director Eddy W. Hartenstein sold 4,000 shares of the company on January 8 at an average price of $229.64, totaling around $918,560. Following this transaction, he holds 46,400 shares valued at approximately $10,655,296, marking a 7.94% decrease in his ownership. Director Diane M. Bryant also sold 15,000 shares on December 23 for an average price of $226.68, resulting in a total of $3,400,200. After this sale, she holds 6,460 shares worth about $1,464,352.80, accounting for a significant 69.90% decrease in her ownership. Over the last 90 days, insiders have sold a total of 191,278 shares valued at $44,964,800, with current insider ownership at 2.00%.

Institutional Movements

Several institutional investors have recently adjusted their positions in Broadcom. Kiely Wealth Advisory Group Inc. initiated a new investment in the company during the second quarter amounting to $128,000. Mark Sheptoff Financial Planning LLC and RiverGlades Family Offices LLC also entered new stakes in the same period, valued at approximately $136,000 and $210,000, respectively. Disciplined Growth Investors Inc. MN and Security National Bank of Sioux City Iowa IA made similar new investments worth $228,000 and $234,000. Overall, institutional investors and hedge funds collectively own about 76.43% of Broadcom's stock.

Stock Performance Insights

On Thursday, Broadcom's shares rose by $1.41, closing at $229.41, with a total trading volume of 23,427,036 shares, slightly below the average volume of 24,616,039. The company's stock is currently trending above its 50-day moving average of $200.02 and its 200-day moving average of $177.11. The stock has experienced a 52-week low of $109.02 and a high of $251.88, with a market capitalization of $1.08 trillion. Broadcom's current PE ratio is 187.12, and its P/E/G ratio stands at 2.35, with a beta of 1.03. Moreover, it has a current ratio of 1.17, a quick ratio of 1.07, and a debt-to-equity ratio of 0.98.

Dividend Increase Announcement

Recently, Broadcom announced an increase in its quarterly dividend, which was paid out on December 31 to shareholders recorded on December 23. The declared dividend was $0.59 per share, representing an annualized dividend of $2.36 and a yield of 1.03%. This marks an increase from the previous quarterly dividend of $0.53. The ex-dividend date was observed on December 23, with a dividend payout ratio (DPR) currently at 192.50%.

Company Overview

Broadcom Inc. is engaged in the design, development, and supply of various semiconductor devices, focusing on complex digital and mixed signal complementary metal oxide semiconductor-based devices and analog III-V based products across the globe. The company operates in two main segments: Semiconductor Solutions and Infrastructure Software.

Conclusion

As the stock sees significant shifts in short interest and analysts provide varying perspectives on growth potential, Broadcom continues to attract attention from both individual and institutional investors alike.

Broadcom, Short, Interest, Stock, Investors