Broadcom (NASDAQ:AVGO) Trading Down 0.3% Following Insider Selling

Broadcom Inc. (NASDAQ:AVGO)’s stock price dropped 0.3% during mid-day trading on Thursday after an insider sold shares in the company. The company traded as low as $1,311.53 and last traded at $1,315.23. Approximately 370,228 shares traded hands during mid-day trading, a decline of 88% from the average daily volume of 3,069,423 shares. The stock had previously closed at $1,318.73.

Specifically, CFO Kirsten M. Spears sold 2,500 shares of the stock in a transaction that occurred on Friday, January 5th. The stock was sold at an average price of $1,043.14, for a total transaction of $2,607,850.00. Following the completion of the sale, the chief financial officer now owns 26,880 shares in the company, valued at approximately $28,039,603.20. The sale was disclosed in a filing with the SEC, which is available through the SEC website. In related news, insider Charlie B. Kawwas sold 5,000 shares of the firm’s stock in a transaction on Monday, March 25th. The stock was sold at an average price of $1,344.00, for a total transaction of $6,720,000.00. Following the sale, the insider now owns 16,575 shares of the company’s stock, valued at approximately $22,276,800. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Kirsten M. Spears sold 2,500 shares of Broadcom stock in a transaction dated Friday, January 5th. The shares were sold at an average price of $1,043.14, for a total value of $2,607,850.00. Following the completion of the sale, the chief financial officer now directly owns 26,880 shares in the company, valued at approximately $28,039,603.20. The disclosure for this sale can be found here. In the last quarter, insiders sold 19,810 shares of company stock worth $26,107,692. 2.00% of the stock is owned by corporate insiders.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on AVGO. Mizuho upped their price target on shares of Broadcom from $1,450.00 to $1,550.00 and gave the stock a “buy” rating in a report on Thursday, March 7th. UBS Group raised their target price on Broadcom to $1,480.00 and gave the company a “buy” rating in a research note on Monday, February 26th. JPMorgan Chase & Co. reaffirmed an “overweight” rating and issued a $1,700.00 price target on shares of Broadcom in a research report on Thursday, March 21st. Truist Financial raised their price target on shares of Broadcom from $995.00 to $1,015.00 and gave the company a “buy” rating in a research report on Friday, December 8th. Finally, Citigroup reissued a “buy” rating and set a $1,100.00 target price on shares of Broadcom in a research report on Monday, December 11th. Three research analysts have rated the stock with a hold rating and nineteen have given a buy rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $1,230.18.

Broadcom Price Performance

The company has a quick ratio of 1.24, a current ratio of 1.34 and a debt-to-equity ratio of 1.05. The stock’s 50-day simple moving average is $1,267.55 and its two-hundred day simple moving average is $1,061.46. The company has a market capitalization of $612.45 billion, a price-to-earnings ratio of 48.75, a PEG ratio of 2.81 and a beta of 1.26.

Broadcom (NASDAQ:AVGO) last released its earnings results on Thursday, March 7th. The semiconductor manufacturer reported $10.99 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $8.95 by $2.04. Broadcom had a net margin of 29.93% and a return on equity of 47.71%. The business had revenue of $11.96 billion during the quarter, compared to analyst estimates of $11.79 billion. During the same quarter in the prior year, the firm earned $9.83 earnings per share. The company’s revenue for the quarter was up 34.2% compared to the same quarter last year. Equities research analysts predict that Broadcom Inc. will post 36.8 earnings per share for the current year.

Broadcom Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, March 29th. Shareholders of record on Thursday, March 21st will be paid a dividend of $5.25 per share. This represents a $21.00 annualized dividend and a yield of 1.59%. The ex-dividend date is Wednesday, March 20th. Broadcom’s dividend payout ratio (DPR) is presently 77.84%.

Institutional Trading of Broadcom

Several hedge funds have recently made changes to their positions in the business. Stuart Chaussee & Associates Inc. acquired a new stake in Broadcom in the fourth quarter valued at approximately $25,000. PSI Advisors LLC increased its stake in Broadcom by 66.7% in the 4th quarter. PSI Advisors LLC now owns 25 shares of the semiconductor manufacturer’s stock valued at $28,000 after buying an additional 10 shares during the period. BKM Wealth Management LLC acquired a new position in Broadcom in the 4th quarter valued at $29,000. CKW Financial Group acquired a new position in shares of Broadcom during the 4th quarter worth $30,000. Finally, Bollard Group LLC acquired a new position in shares of Broadcom during the 2nd quarter worth $26,000. Institutional investors and hedge funds own 76.43% of the company’s stock.

Broadcom Company Profile

Broadcom Inc designs, develops, and supplies various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates in two segments, Semiconductor Solutions and Infrastructure Software.