Broadcom (NASDAQ:AVGO) Trading 0.5% Higher - Time to Buy?

On Friday, shares of Broadcom Inc. (NASDAQ:AVGO) increased by 0.5%. The stock rose as high as $182.71 before closing at $182.39. During the trading session, 4,756,222 shares were exchanged, which is significantly lower than the average volume of 30,601,725 shares, reflecting an 84% decrease. The previous close marked a value of $181.53.

Analyst Ratings Changes

Several research analysts have recently provided updates on Broadcom's stock. Oppenheimer has reduced its target price from $2,000.00 to $200.00 while maintaining an "outperform" rating. On the other hand, JPMorgan Chase & Co. increased their target price from $200.00 to $210.00 with an "overweight" rating. Similarly, Morgan Stanley revised their price target from $176.00 to $180.00. Meanwhile, Rosenblatt Securities lowered their target from $2,400.00 to $240.00 but still considers it a "buy". Bank of America has a "buy" rating and has increased its price target from $200.00 to $215.00. Overall, amongst 27 analysts, two have a hold rating, twenty-four have a buy rating, and one has a strong buy rating for Broadcom. MarketBeat reports a consensus rating of "Moderate Buy" with an average price target of $191.54.

Broadcom Price Performance

The company has a current ratio of 1.04 and a quick ratio of 0.94, along with a debt-to-equity ratio of 1.02. Broadcom's fifty-day moving average stands at $165.88, whereas its two-hundred-day average is $152.92. The market capitalization is approximately $835.55 billion, with a price-to-earnings (P/E) ratio of 7.84, a PEG ratio of 2.99, and a beta value of 1.17.

In its latest quarterly earnings report on September 5th, Broadcom announced earnings per share (EPS) of $1.24, surpassing the expected $1.20. It reported revenue of $13.07 billion, exceeding the forecast of $12.98 billion. The net margin stood at 10.88%, with a return on equity of 30.12%. Compared to the previous year, quarterly revenue climbed by 47.3%, up from $0.95 EPS in the same quarter last year. Analysts predict that Broadcom will report an EPS of 3.78 for the current fiscal year.

Broadcom Increases Dividend

The company has also announced a quarterly dividend, which has recently been paid out on September 30th. Shareholders on record as of September 19th received a dividend of $0.53 per share, maintaining the previous dividend amount. The ex-dividend date was September 19th, making the annualized dividend $2.12, yielding 1.18%. Broadcom’s payout ratio is currently 9.12%.

Insider Trading Activity

In recent insider trading news, Director Gayla J. Delly sold 750 shares at an average price of $174.53 on September 25th, totaling approximately $130,897.50. After this transaction, Delly's ownership is valued at around $6,064,917.50. Additionally, CEO Hock E. Tan sold 50,000 shares at an average price of $163.37, equating to around $8,168,500.00. Following this sale, he directly holds shares worth $217,594,136.70. Over the past three months, insiders have sold a total of 311,080 shares for about $53,540,590. Insiders currently own about 2.00% of Broadcom stock.

Hedge Funds and Institutional Investors

Various large investors have recently altered their holdings in Broadcom. Legend Financial Advisors Inc. increased its stake by 72.7% during the first quarter, now owning 19 shares valued at $25,000. Richardson Capital Management LLC entered a new position valued at $29,000. Delta Asset Management LLC TN expanded its holdings by 242.9%, bringing its total to 24 shares worth $32,000 after purchasing an additional 17 shares. Redmont Wealth Advisors LLC recently took a new position valued at $36,000. Finally, Tsfg LLC boosted its stake by 1,073.7% in the third quarter, acquiring 223 shares now worth $38,000. Hedge funds and institutional investors collectively own 76.43% of Broadcom's stock.

About Broadcom

Broadcom Inc. specializes in designing, developing, and supplying a wide range of semiconductor devices, particularly focusing on complex digital and mixed signal complementary metal oxide semiconductor-based devices and analog III-V based products worldwide. The company operates in two main segments: Semiconductor Solutions and Infrastructure Software.

Should You Consider Investing in Broadcom?

If you're considering investing in Broadcom, it's worth noting that while it currently holds a "Buy" rating, top-rated analysts suggest there are five other stocks that might present better buying opportunities at this time.

Broadcom, Stocks, Dividends, Insiders, Investors