Broadcom (NASDAQ:AVGO) Shares Down 5.6% – Should You Sell?

Broadcom Inc. (NASDAQ:AVGO)’s stock price traded down 5.6% on Thursday . The stock traded as low as $172.55 and last traded at $174.86. 11,253,571 shares traded hands during trading, a decline of 64% from the average session volume of 31,132,428 shares. The stock had previously closed at $185.15.

Wall Street Analysts Forecast Growth

AVGO has been the subject of a number of research reports. JPMorgan Chase & Co. raised their price objective on shares of Broadcom from $210.00 to $250.00 and gave the company an “overweight” rating in a report on Friday, December 13th. Jefferies Financial Group raised their price target on shares of Broadcom from $205.00 to $225.00 and gave the company a “buy” rating in a research note on Friday, December 13th. Susquehanna boosted their price objective on shares of Broadcom from $200.00 to $225.00 and gave the stock a “positive” rating in a research note on Friday, December 13th. Evercore ISI raised their target price on Broadcom from $201.00 to $250.00 and gave the stock an “outperform” rating in a research report on Friday, December 13th. Finally, Truist Financial increased their price target on Broadcom from $260.00 to $267.00 and gave the company a “buy” rating in a research note on Friday, March 7th. Three analysts have rated the stock with a hold rating and twenty-five have issued a buy rating to the stock. Based on data from MarketBeat, Broadcom has a consensus rating of “Moderate Buy” and an average target price of $231.68.

Broadcom Price Performance

The stock has a market capitalization of $855.47 billion, a P/E ratio of 148.40, a price-to-earnings-growth ratio of 2.29 and a beta of 1.05. The business has a fifty day simple moving average of $195.52 and a 200 day simple moving average of $195.99. 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 company also recently disclosed a quarterly dividend, which was paid on Monday, March 31st. Shareholders of record on Thursday, March 20th were given a $0.59 dividend. This represents a $2.36 dividend on an annualized basis and a yield of 1.30%. The ex-dividend date was Thursday, March 20th. Broadcom’s payout ratio is 113.46%.

Broadcom announced that its Board of Directors has initiated a stock repurchase plan on Monday, April 7th that allows the company to buyback $10.00 billion in shares. This buyback authorization allows the semiconductor manufacturer to purchase up to 1.4% of its shares through open market purchases. Shares buyback plans are often an indication that the company’s board of directors believes its stock is undervalued.

Insider Buying and Selling

In related news, insider Mark David Brazeal sold 30,000 shares of Broadcom stock in a transaction that occurred on Monday, March 24th. The shares were sold at an average price of $194.65, for a total value of $5,839,500.00. Following the sale, the insider now owns 490,956 shares of the company’s stock, valued at approximately $95,564,585.40. The trade was a 5.76 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Henry Samueli sold 663,976 shares of the company’s stock in a transaction that occurred on Wednesday, March 26th. The shares were sold at an average price of $181.60, for a total value of $120,578,041.60. Following the completion of the transaction, the director now owns 38,798,721 shares in the company, valued at approximately $7,045,847,733.60. The trade was a 1.68 % decrease in their position. The disclosure for this sale can be found here. 2.00% of the stock is owned by insiders.

Institutional Investors Weigh In On Broadcom

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Perkins Coie Trust Co grew its stake in Broadcom by 0.8% in the 1st quarter. Perkins Coie Trust Co now owns 36,373 shares of the semiconductor manufacturer’s stock valued at $6,090,000 after buying an additional 275 shares in the last quarter. First City Capital Management Inc. grew its position in shares of Broadcom by 30.6% in the first quarter. First City Capital Management Inc. now owns 1,730 shares of the semiconductor manufacturer’s stock valued at $290,000 after purchasing an additional 405 shares in the last quarter. Intergy Private Wealth LLC lifted its holdings in Broadcom by 1.9% during the 1st quarter. Intergy Private Wealth LLC now owns 4,004 shares of the semiconductor manufacturer’s stock worth $670,000 after purchasing an additional 73 shares in the last quarter. AAFMAA Wealth Management & Trust LLC boosted its stake in Broadcom by 19.7% in the 1st quarter. AAFMAA Wealth Management & Trust LLC now owns 14,828 shares of the semiconductor manufacturer’s stock worth $2,483,000 after purchasing an additional 2,442 shares during the period. Finally, GGM Financials LLC purchased a new position in Broadcom during the 1st quarter valued at about $386,000. 76.43% of the stock is currently owned by institutional investors.

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.