Broadcom (NASDAQ:AVGO) released its earnings results on Thursday. The semiconductor manufacturer reported $4.88 earnings per share for the quarter, topping the Zacks’ consensus estimate of $4.05 by $0.83, Briefing.com reports. The firm had revenue of $5.02 billion during the quarter, compared to analyst estimates of $5 billion. Broadcom had a net margin of 41.37% and a return on equity of 29.50%. The business’s revenue was up 19.4% on a year-over-year basis. During the same quarter in the previous year, the business earned $3.69 EPS.
Shares of Broadcom traded up $1.16, reaching $264.68, during trading hours on Thursday, according to MarketBeat Ratings. 4,584,787 shares of the company traded hands, compared to its average volume of 3,815,018. The firm has a market capitalization of $106.49 billion, a P/E ratio of 18.51, a P/E/G ratio of 1.24 and a beta of 0.93. Broadcom has a 1-year low of $221.98 and a 1-year high of $285.68. The company has a debt-to-equity ratio of 0.60, a quick ratio of 5.04 and a current ratio of 5.70.
The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 29th. Stockholders of record on Wednesday, June 20th will be given a dividend of $1.75 per share. This represents a $7.00 dividend on an annualized basis and a dividend yield of 2.64%. Broadcom’s dividend payout ratio is currently 48.95%.
Broadcom declared that its Board of Directors has approved a share buyback plan on Thursday, April 12th that authorizes the company to buyback $12.00 billion in shares. This buyback authorization authorizes the semiconductor manufacturer to reacquire up to 12.2% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s board believes its shares are undervalued.
A number of research analysts have weighed in on the stock. BidaskClub raised shares of Broadcom from a “hold” rating to a “buy” rating in a research report on Tuesday. Zacks Investment Research raised shares of Broadcom from a “sell” rating to a “hold” rating in a research report on Monday. Longbow Research assumed coverage on shares of Broadcom in a research report on Wednesday, May 30th. They set a “buy” rating and a $295.00 target price for the company. Evercore ISI assumed coverage on shares of Broadcom in a research report on Thursday, May 24th. They set an “outperform” rating and a $300.00 target price for the company. Finally, Cowen reissued an “outperform” rating on shares of Broadcom in a research report on Thursday, May 17th. Four equities research analysts have rated the stock with a hold rating, thirty-three have given a buy rating and one has issued a strong buy rating to the stock. Broadcom presently has an average rating of “Buy” and an average price target of $310.11.
In related news, SVP Charlie B. Kawwas sold 10,000 shares of the company’s stock in a transaction dated Tuesday, May 29th. The shares were sold at an average price of $250.37, for a total value of $2,503,700.00. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, SVP Bryan Ingram sold 9,396 shares of the company’s stock in a transaction dated Wednesday, March 14th. The shares were 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. In the last three months, insiders sold 87,479 shares of company stock worth $22,290,449. 3.30% of the stock is currently owned by insiders.
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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