Broadcom (NASDAQ:AVGO) Stock Price Up 4.2% – Still a Buy?

Broadcom Inc. (NASDAQ:AVGO)’s stock price rose 4.2% during trading on Monday . The stock traded as high as $220.17 and last traded at $217.04. Approximately 7,709,949 shares were traded during trading, a decline of 75% from the average daily volume of 31,169,624 shares. The stock had previously closed at $208.20.

Wall Street Analysts Forecast Growth

AVGO has been the topic of several research analyst reports. Bank of America cut their price target on shares of Broadcom from $260.00 to $240.00 and set a “buy” rating on the stock in a research note on Wednesday, April 16th. Citigroup cut their price target on shares of Broadcom from $220.00 to $210.00 and set a “buy” rating on the stock in a research note on Friday, April 11th. Barclays cut their price target on shares of Broadcom from $260.00 to $215.00 and set an “overweight” rating on the stock in a research note on Tuesday, April 22nd. Morgan Stanley lifted their price target on shares of Broadcom from $246.00 to $260.00 and gave the stock an “overweight” rating in a research note on Friday, March 7th. Finally, Cantor Fitzgerald reiterated an “overweight” rating and set a $300.00 price target on shares of Broadcom in a research note on Friday, March 7th. Three investment analysts have rated the stock with a hold rating, twenty-five have given a buy rating and one has given a strong buy rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $229.48.

Broadcom Price Performance

The company has a market capitalization of $1.04 trillion, a P/E ratio of 180.74, a P/E/G ratio of 2.29 and a beta of 1.04. The business’s 50-day simple moving average is $182.95 and its 200 day simple moving average is $197.68. The company has a current ratio of 1.17, a quick ratio of 1.07 and a debt-to-equity ratio of 0.98.

Broadcom Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, March 31st. Investors of record on Thursday, March 20th were issued a $0.59 dividend. The ex-dividend date of this dividend was Thursday, March 20th. This represents a $2.36 dividend on an annualized basis and a dividend yield of 1.07%. Broadcom’s payout ratio is currently 113.46%.

Broadcom announced that its board has approved a share repurchase program on Monday, April 7th that allows the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization allows the semiconductor manufacturer to purchase up to 1.4% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s board of directors believes its shares are undervalued.

Insider Buying and Selling

In related news, Director Justine Page sold 800 shares of the business’s stock in a transaction that occurred on Monday, April 14th. The shares were sold at an average price of $185.00, for a total value of $148,000.00. Following the sale, the director now directly owns 25,380 shares in the company, valued at $4,695,300. The trade was a 3.06% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider Mark David Brazeal sold 25,000 shares of Broadcom stock in a transaction that occurred on Friday, April 11th. The stock was sold at an average price of $180.00, for a total transaction of $4,500,000.00. Following the completion of the transaction, the insider now directly owns 465,956 shares in the company, valued at approximately $83,872,080. This trade represents a 5.09% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 719,776 shares of company stock worth $131,065,542 in the last ninety days. 2.00% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Regent Peak Wealth Advisors LLC lifted its stake in shares of Broadcom by 3.0% in the fourth quarter. Regent Peak Wealth Advisors LLC now owns 13,309 shares of the semiconductor manufacturer’s stock worth $3,086,000 after buying an additional 386 shares during the last quarter. RMR Wealth Builders raised its stake in Broadcom by 1.0% during the 4th quarter. RMR Wealth Builders now owns 70,370 shares of the semiconductor manufacturer’s stock valued at $16,315,000 after purchasing an additional 676 shares during the last quarter. Czech National Bank raised its stake in Broadcom by 6.8% during the 4th quarter. Czech National Bank now owns 1,012,619 shares of the semiconductor manufacturer’s stock valued at $234,766,000 after purchasing an additional 64,370 shares during the last quarter. Boyce & Associates Wealth Consulting Inc. acquired a new position in Broadcom during the 4th quarter valued at $242,000. Finally, Threadgill Financial LLC acquired a new position in Broadcom during the 4th quarter valued at $225,000. 76.43% of the stock is owned by hedge funds and other institutional investors.

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.