Broadcom (NASDAQ:AVGO) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Wednesday.
According to Zacks, “Broadcom faces intensifying competition and integration risks due to frequent acquisitions. The company’s leveraged balance sheet and customer concentration continue to be headwinds. Moreover, estimates have remained stable lately ahead of company’s Q2 earnings release. Furthermore, the company’s stock has underformed the industry in the past year. However, the company has positive record of earnings surprises in recent quarters. The company is benefiting from strong demand of its wireless solutions and expanding product portfolio, which makes it well-positioned to address the needs of rapidly growing technologies like IoT and 5G. Strong ties with leading OEMs across multiple target markets will help the company to gain key insights into the requirements of customers. The launch of the next generation WiFi products is expected to be a growth driver.Re-domiciliation to the USA and aggressive share buyback are other positives.”
Other equities research analysts also recently issued reports about the stock. Vetr raised shares of Broadcom from a “hold” rating to a “buy” rating and set a $269.37 price objective for the company in a research report on Thursday, January 25th. Credit Suisse Group reaffirmed a “buy” rating on shares of Broadcom in a research report on Tuesday, January 23rd. B. Riley reaffirmed a “buy” rating and issued a $335.00 price objective (up from $330.00) on shares of Broadcom in a research report on Thursday, February 1st. Canaccord Genuity upped their price objective on shares of Broadcom from $100.00 to $325.00 and gave the stock a “buy” rating in a research report on Wednesday, January 31st. Finally, Bank of America reaffirmed a “buy” rating and issued a $340.00 price objective on shares of Broadcom in a research report on Thursday, March 15th. One equities research analyst has rated the stock with a sell rating, four have given a hold rating, thirty-two have given a buy rating and one has issued a strong buy rating to the stock. Broadcom currently has an average rating of “Buy” and a consensus price target of $308.96.
Shares of AVGO stock opened at $239.45 on Wednesday. Broadcom has a 52-week low of $239.39 and a 52-week high of $241.50. The company has a quick ratio of 5.04, a current ratio of 5.70 and a debt-to-equity ratio of 0.60. The stock has a market capitalization of $98.79 billion, a price-to-earnings ratio of 15.11, a PEG ratio of 1.15 and a beta of 0.95.
Broadcom (NASDAQ:AVGO) last issued its quarterly earnings data on Thursday, March 15th. The semiconductor manufacturer reported $5.12 earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of $4.41 by $0.71. Broadcom had a net margin of 41.37% and a return on equity of 29.50%. The business had revenue of $5.33 billion during the quarter, compared to the consensus estimate of $5.32 billion. During the same period in the prior year, the firm posted $3.63 EPS. The firm’s quarterly revenue was up 28.5% compared to the same quarter last year. equities analysts expect that Broadcom will post 16.82 EPS for the current year.
Broadcom announced that its Board of Directors has approved a share buyback plan on Thursday, April 12th that allows the company to buyback $12.00 billion in outstanding shares. This buyback authorization allows the semiconductor manufacturer to purchase up to 12.2% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s management believes its stock is undervalued.
In other Broadcom news, insider Hock E. Tan sold 20,000 shares of the stock in a transaction that occurred on Monday, April 16th. The shares were sold at an average price of $248.03, for a total value of $4,960,600.00. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, SVP Bryan Ingram sold 9,396 shares of the stock in a transaction that occurred on Wednesday, March 14th. The stock was sold at an average price of $259.81, for a total transaction of $2,441,174.76. The disclosure for this sale can be found here. Insiders have sold a total of 78,675 shares of company stock worth $20,078,429 over the last 90 days. 3.30% of the stock is currently owned by corporate insiders.
A number of hedge funds and other institutional investors have recently bought and sold shares of AVGO. Buckingham Capital Management Inc. lifted its stake in Broadcom by 63.5% in the 3rd quarter. Buckingham Capital Management Inc. now owns 2,346 shares of the semiconductor manufacturer’s stock worth $569,000 after purchasing an additional 911 shares in the last quarter. Atria Investments LLC lifted its stake in Broadcom by 8.8% in the 4th quarter. Atria Investments LLC now owns 6,190 shares of the semiconductor manufacturer’s stock worth $1,590,000 after purchasing an additional 499 shares in the last quarter. E&G Advisors LP purchased a new stake in Broadcom in the 4th quarter worth approximately $501,000. Asset Dedication LLC lifted its stake in Broadcom by 63.2% in the 4th quarter. Asset Dedication LLC now owns 2,206 shares of the semiconductor manufacturer’s stock worth $565,000 after purchasing an additional 854 shares in the last quarter. Finally, Bach Investment Advisors Ltd purchased a new stake in Broadcom in the 4th quarter worth approximately $259,000. Institutional investors and hedge funds own 89.02% of the company’s stock.
Broadcom Company Profile
Broadcom Limited designs, develops, and supplies a range of 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 through four segments: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial & Other.
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