Broadcom (NASDAQ:AVGO) Shares Up 5.3% - Time to Buy?

Broadcom Inc. (NASDAQ:AVGO) experienced an increase of 5.3% during trading on Monday. The stock reached a high of $180.68 and was last seen trading at $179.53. A total of 27,830,828 shares changed hands during the session, marking a 47% rise from the average trading volume of 18,927,820 shares. The stock had closed at $170.47 prior to this jump.

Analysts Set New Price Targets

Numerous analysts have recently updated their ratings and price targets for Broadcom. HSBC Global Research upgraded the stock to a "hold" rating on December 3rd. On September 16th, TD Cowen elevated Broadcom to a "strong buy." Truist Financial raised their price target from $204.00 to $205.00 and assigned a "buy" rating on October 8th. Moreover, Goldman Sachs adjusted their price objective from $185.00 to $190.00 while issuing a "buy" rating on September 6th. Cantor Fitzgerald also raised their target price from $200.00 to $225.00 with an "overweight" rating on October 8th. Currently, three analysts recommend holding the stock, while twenty-two suggest buying, and one rates it as a strong buy. MarketBeat.com indicates that Broadcom holds a consensus rating of "Moderate Buy" and an average price target of $195.96.

Broadcom Stock Performance

The financial metrics for Broadcom show a current ratio of 1.04, a quick ratio of 0.94, and a debt-to-equity ratio of 1.02. The company's market capitalization stands at $838.51 billion, with a P/E ratio of 155.98 and a price-to-earnings-growth ratio of 2.11. The stock has a beta of 1.13, with a fifty-day moving average of $173.01 and a 200-day moving average of $162.79.

Broadcom's last quarterly earnings report, released on September 5th, showed earnings per share (EPS) of $1.24, surpassing the consensus estimate of $1.20 by $0.04. The company's return on equity was reported at 30.12%, and its net margin was 10.88%. Revenue for the quarter hit $13.07 billion, exceeding analyst predictions of $12.98 billion and marking a 47.3% increase from the previous year's quarter.

Insider Trading Activity

In recent insider trading, CEO Hock E. Tan sold 50,000 shares at an average price of $163.37 on September 17th, totaling $8,168,500. Following this transaction, his remaining holdings are valued at approximately $217,594,136.70. Additionally, Charlie B. Kawwas, another insider, sold 25,200 shares on September 19th for $4,240,404 at an average price of $168.27. These sales represent small decreases in their overall positions. Over the past ninety days, insiders have sold a total of 311,080 shares valued at $53,540,590, with insiders owning 2.00% of the company’s stock.

Institutional Investors Take Positions

Recently, hedge funds and institutional investors have adjusted their stakes in Broadcom. D.B. Root & Company LLC increased their holdings by 58.0% in the second quarter, owning 248 shares worth $398,000 after buying an additional 91 shares. NCP Inc. raised their position by 615.4%, acquiring 465 shares valued at $747,000. Meanwhile, Ameliora Wealth Management Ltd. boosted their stakes by 183.4%, now possessing 2,627 shares worth $4,218,000. Bank Pictet & Cie Asia Ltd. also increased their holdings by 27.3%, now owning 610 shares worth approximately $979,000. Hedge funds and institutional players collectively own about 76.43% of Broadcom's stock.

Understanding Broadcom

Broadcom Inc. specializes in designing, developing, and supplying a wide range of semiconductor devices, concentrating on complex digital and mixed-signal complementary metal oxide semiconductor products as well as analog III-V based items. The company's operations are divided into two main segments: Semiconductor Solutions and Infrastructure Software.

Should You Invest in Broadcom?

If you're considering investing in Broadcom right now, it's essential to know that while it currently has a "Moderate Buy" rating among analysts, there are other stocks that some experts believe might present better investment opportunities.

Broadcom, Stocks, Investment