Broadcom (NASDAQ:AVGO) Trading 2.2% Higher – Should You Buy?

Broadcom Inc. (NASDAQ:AVGO)’s stock price was up 2.2% during trading on Tuesday . The stock traded as high as $390.58 and last traded at $386.50. 16,549,243 shares were traded during mid-day trading, a decline of 36% from the average session volume of 26,015,506 shares. The stock had previously closed at $378.16.

Wall Street Analysts Forecast Growth

Several analysts have recently commented on AVGO shares. Oppenheimer reaffirmed an “outperform” rating and set a $535.00 price target (up from $450.00) on shares of Broadcom in a research report on Thursday, June 4th. Dbs Bank upgraded shares of Broadcom to a “moderate buy” rating in a report on Thursday, June 18th. Susquehanna reissued a “positive” rating and issued a $490.00 price target (up from $450.00) on shares of Broadcom in a research note on Thursday, May 28th. The Goldman Sachs Group reissued a “buy” rating and issued a $525.00 target price on shares of Broadcom in a research report on Thursday, June 4th. Finally, Evercore reiterated an “outperform” rating and issued a $582.00 price objective on shares of Broadcom in a report on Tuesday, May 19th. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, Broadcom has an average rating of “Moderate Buy” and a consensus price target of $493.24.

Broadcom Stock Performance

The company has a debt-to-equity ratio of 0.71, a quick ratio of 2.01 and a current ratio of 2.24. The stock’s 50-day simple moving average is $399.23 and its 200 day simple moving average is $366.26. The company has a market capitalization of $1.89 trillion, a PE ratio of 66.14, a P/E/G ratio of 0.74 and a beta of 1.45.

Broadcom (NASDAQ:AVGO) last released its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, beating analysts’ consensus estimates of $2.40 by $0.04. The business had revenue of $22.19 billion for the quarter, compared to the consensus estimate of $22.13 billion. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The business’s revenue for the quarter was up 47.9% on a year-over-year basis. During the same quarter in the prior year, the business posted $1.58 EPS. As a group, research analysts expect that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 22nd were given a $0.65 dividend. The ex-dividend date was Monday, June 22nd. This represents a $2.60 annualized dividend and a yield of 0.7%. Broadcom’s dividend payout ratio is 43.33%.

Insider Buying and Selling

In related news, Director Harry L. You bought 1,000 shares of the stock in a transaction on Thursday, June 11th. The shares were bought at an average cost of $373.57 per share, for a total transaction of $373,570.00. Following the purchase, the director owned 38,466 shares of the company’s stock, valued at $14,369,743.62. This trade represents a 2.67% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, Director Gayla J. Delly sold 1,890 shares of the company’s stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total transaction of $728,368.20. Following the transaction, the director owned 31,326 shares of the company’s stock, valued at approximately $12,072,413.88. The trade was a 5.69% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders sold 61,644 shares of company stock worth $24,016,214. Corporate insiders own 1.90% of the company’s stock.

Hedge Funds Weigh In On Broadcom

A number of large investors have recently made changes to their positions in AVGO. Fullerton Advisors LLC lifted its position in Broadcom by 1.3% in the 1st quarter. Fullerton Advisors LLC now owns 1,989 shares of the semiconductor manufacturer’s stock worth $616,000 after buying an additional 25 shares during the last quarter. NORTHSTAR ASSET MANAGEMENT Co raised its stake in shares of Broadcom by 0.5% during the first quarter. NORTHSTAR ASSET MANAGEMENT Co now owns 5,350 shares of the semiconductor manufacturer’s stock worth $1,656,000 after acquiring an additional 25 shares in the last quarter. RFG Holdings Inc. lifted its holdings in shares of Broadcom by 0.3% in the 1st quarter. RFG Holdings Inc. now owns 8,499 shares of the semiconductor manufacturer’s stock worth $2,631,000 after acquiring an additional 26 shares during the last quarter. Yukon Wealth Management Inc. boosted its stake in shares of Broadcom by 1.1% in the 1st quarter. Yukon Wealth Management Inc. now owns 2,501 shares of the semiconductor manufacturer’s stock valued at $774,000 after purchasing an additional 26 shares in the last quarter. Finally, NerdWallet Wealth Partners LLC grew its holdings in shares of Broadcom by 2.6% during the 2nd quarter. NerdWallet Wealth Partners LLC now owns 1,057 shares of the semiconductor manufacturer’s stock valued at $399,000 after purchasing an additional 27 shares during the last quarter. Hedge funds and other institutional investors own 76.43% of the company’s stock.

Broadcom Company Profile

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops and supplies semiconductor and infrastructure software solutions for a broad range of markets. The company’s semiconductor business provides components and systems for wired and wireless communications, enterprise and cloud storage, networking and broadband access, serving original equipment manufacturers, cloud service providers, telecommunications carriers and industrial customers worldwide. Broadcom is headquartered in Irvine, California, and operates globally with research, development and sales organizations across North America, Europe and Asia.

On the semiconductor side, Broadcom’s portfolio includes system-on-chip (SoC) and application-specific integrated circuit (ASIC) solutions, radio-frequency and connectivity components, Ethernet switching and PHY devices, storage adapters and controllers, optical transceivers and other networking silicon.