Broadcom (NASDAQ:AVGO) Trading Up 1.2% – Time to Buy?

Broadcom Inc. (NASDAQ:AVGO) shares were up 1.2% during mid-day trading on Thursday . The stock traded as high as $336.03 and last traded at $329.88. Approximately 53,464,490 shares changed hands during trading, an increase of 103% from the average daily volume of 26,376,697 shares. The stock had previously closed at $326.02.

Analysts Set New Price Targets

A number of research analysts recently weighed in on AVGO shares. Oppenheimer lifted their price objective on shares of Broadcom from $435.00 to $450.00 and gave the company an “outperform” rating in a report on Friday, December 12th. Robert W. Baird set a $420.00 price target on shares of Broadcom in a research report on Friday, December 12th. Benchmark upped their price objective on Broadcom from $385.00 to $485.00 and gave the stock a “buy” rating in a research report on Friday, December 12th. Sanford C. Bernstein reiterated an “outperform” rating and issued a $475.00 target price (up from $400.00) on shares of Broadcom in a report on Friday, December 12th. Finally, Wells Fargo & Company boosted their target price on Broadcom from $255.00 to $345.00 and gave the stock an “equal weight” rating in a research note on Friday, September 5th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and one has assigned a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Buy” and an average target price of $435.96.

Broadcom Price Performance

The stock has a fifty day simple moving average of $362.96 and a 200-day simple moving average of $319.95. The company has a market capitalization of $1.56 trillion, a PE ratio of 69.30, a P/E/G ratio of 1.15 and a beta of 1.19. The company has a current ratio of 1.71, a quick ratio of 1.58 and a debt-to-equity ratio of 0.76.

Broadcom (NASDAQ:AVGO) last released its quarterly earnings data on Thursday, December 11th. The semiconductor manufacturer reported $1.95 EPS for the quarter, beating analysts’ consensus estimates of $1.87 by $0.08. The business had revenue of $18.02 billion for the quarter, compared to the consensus estimate of $17.46 billion. Broadcom had a return on equity of 37.45% and a net margin of 36.20%.The business’s revenue for the quarter was up 28.2% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.42 EPS. Equities analysts anticipate that Broadcom Inc. will post 5.38 earnings per share for the current year.

Broadcom Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 31st. Stockholders of record on Monday, December 22nd will be given a dividend of $0.65 per share. The ex-dividend date is Monday, December 22nd. This represents a $2.60 annualized dividend and a dividend yield of 0.8%. This is a boost from Broadcom’s previous quarterly dividend of $0.59. Broadcom’s payout ratio is presently 49.58%.

Insider Activity

In other Broadcom news, Director Henry Samueli sold 368,797 shares of the company’s stock in a transaction on Wednesday, September 24th. The shares were sold at an average price of $337.91, for a total value of $124,620,194.27. Following the completion of the transaction, the director owned 37,722,534 shares in the company, valued at $12,746,821,463.94. This represents a 0.97% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Justine Page sold 800 shares of the firm’s stock in a transaction dated Monday, December 15th. The stock was sold at an average price of $361.89, for a total value of $289,512.00. Following the transaction, the director directly owned 20,582 shares in the company, valued at approximately $7,448,419.98. The trade was a 3.74% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 791,513 shares of company stock worth $287,708,906. Corporate insiders own 2.00% of the company’s stock.

Institutional Trading of Broadcom

A number of large investors have recently made changes to their positions in AVGO. Arthur M. Cohen & Associates LLC lifted its position in Broadcom by 0.6% in the 3rd quarter. Arthur M. Cohen & Associates LLC now owns 4,781 shares of the semiconductor manufacturer’s stock valued at $1,577,000 after acquiring an additional 30 shares in the last quarter. Jackson Hole Capital Partners LLC raised its stake in shares of Broadcom by 1.4% in the third quarter. Jackson Hole Capital Partners LLC now owns 2,170 shares of the semiconductor manufacturer’s stock worth $716,000 after purchasing an additional 30 shares during the last quarter. Private Wealth Partners LLC lifted its holdings in shares of Broadcom by 0.7% during the third quarter. Private Wealth Partners LLC now owns 4,273 shares of the semiconductor manufacturer’s stock valued at $1,410,000 after purchasing an additional 30 shares in the last quarter. Planning Alternatives Ltd. ADV lifted its holdings in shares of Broadcom by 1.4% during the third quarter. Planning Alternatives Ltd. ADV now owns 2,168 shares of the semiconductor manufacturer’s stock valued at $715,000 after purchasing an additional 30 shares in the last quarter. Finally, Bell Investment Advisors Inc boosted its position in shares of Broadcom by 1.9% during the third quarter. Bell Investment Advisors Inc now owns 1,638 shares of the semiconductor manufacturer’s stock valued at $540,000 after buying an additional 30 shares during the last quarter. 76.43% of the stock is owned by institutional investors and hedge funds.

About Broadcom

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.