Broadcom Shares Decline 1.1% Following Analyst Downgrade
Shares of Broadcom Inc. (NASDAQ:AVGO) saw a decline of 1.1% on Wednesday after investment bank Morgan Stanley revised its price target for the company from $265.00 to $246.00. Despite lowering the target, Morgan Stanley still holds an overweight rating on the stock. During the trading session, Broadcom's shares reached a low of $203.85 before finally closing at $205.12. The volume of shares traded was around 10,672,787, representing a 64% drop compared to the average daily trading volume of 29,528,203 shares. The stock previously concluded the day at $207.36.
Analysts' Views on Broadcom
Broadcom has been frequently discussed among analysts. Deutsche Bank recently raised their price target for Broadcom from $190.00 to $240.00, maintaining a "buy" rating. Barclays also increased their target for the stock from $205.00 to $260.00 and assigned it an "overweight" rating. Similarly, Bank of America lifted their objective from $215.00 to $250.00, also giving Broadcom a "buy" designation. Cantor Fitzgerald and Robert W. Baird have made similar adjustments to their price targets. Overall, out of 27 analysts, three have recommended holding the stock while 24 have given it a buy rating. According to estimates compiled by MarketBeat.com, Broadcom shares have an average rating of "Moderate Buy" and a price target of $225.04.
Insider Trading Activities
In recent insider news, Director Eddy W. Hartenstein sold 4,000 shares on January 8th at an average price of $229.64, totaling $918,560. After this transaction, Hartenstein holds about 46,400 shares. Another director, Check Kian Low, sold 48,000 shares on January 6th for a total of approximately $11.3 million. Following these trades, Low retains 113,050 shares valued at around $26.6 million. Over the past ninety days, insiders have sold a total of 191,278 shares, amounting to nearly $45 million, with company insiders now owning 2.00% of Broadcom's total shares.
Institutional Investment Trends
Recently, several institutional investors have adjusted their positions in Broadcom. NCP Inc. saw a substantial increase in ownership by 615.4% during the second quarter, now holding 465 shares. Point72 Asia Singapore also significantly raised its holdings by 257.1%, acquiring an additional 8,760 shares. Other firms like Pathway Financial Advisers LLC and IMS Capital Management also increased their stakes. Approximately 76.43% of Broadcom's stock is presently held by institutional investors.
Broadcom's Recent Performance
The company's 50-day simple moving average stands at $210.37, while the 200-day moving average is at $181.05. Broadcom currently has a market cap of $961.76 billion, a price-to-earnings (PE) ratio of 167.31, and a P/E/G ratio of 2.52. Financially, the company reported earnings of $1.42 per share last quarter, surpassing analyst expectations of $1.39. Revenue for the quarter was $14.05 billion, which slightly fell short of predictions. The company achieved a net margin of 11.43% and has experienced a year-on-year revenue increase of 51.2%.
Dividend Increase Announcement
Recently, Broadcom announced a quarterly dividend increase, with the latest payment of $0.59 per share paid out on December 31st. This marks a rise from the previous quarter's dividend of $0.53, translating to an annualized dividend of $2.36 and a yield of 1.15%. The company's dividend payout ratio currently stands at 192.50%.Broadcom, Stocks, Analysis