Broadcom (NASDAQ:AVGO) Sets New 1-Year High – Here’s What Happened

Shares of Broadcom Inc. (NASDAQ:AVGO) reached a new 52-week high on Tuesday . The stock traded as high as $265.87 and last traded at $263.12, with a volume of 8527376 shares. The stock had previously closed at $253.77.

Wall Street Analysts Forecast Growth

Several research firms have commented on AVGO. KeyCorp raised their target price on shares of Broadcom from $260.00 to $275.00 and gave the company an “overweight” rating in a research note on Friday, March 7th. Rosenblatt Securities increased their price objective on shares of Broadcom from $223.00 to $340.00 and gave the company a “buy” rating in a report on Friday, June 6th. Erste Group Bank upgraded Broadcom from a “hold” rating to a “buy” rating in a research report on Thursday, June 5th. Cowen reaffirmed a “buy” rating on shares of Broadcom in a research note on Friday, June 6th. Finally, Susquehanna boosted their price objective on Broadcom from $280.00 to $300.00 and gave the stock a “positive” rating in a research note on Friday, June 6th. Two equities research analysts have rated the stock with a hold rating, twenty-six have assigned a buy rating and two have issued a strong buy rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Buy” and a consensus target price of $281.25.

Broadcom Trading Up 0.3%

The company has a quick ratio of 0.98, a current ratio of 1.08 and a debt-to-equity ratio of 0.89. The firm has a market cap of $1.24 trillion, a price-to-earnings ratio of 99.12, a PEG ratio of 1.88 and a beta of 1.11. The company has a 50-day moving average price of $225.48 and a 200 day moving average price of $213.98.

Broadcom (NASDAQ:AVGO) last announced its quarterly earnings data on Thursday, June 5th. The semiconductor manufacturer reported $1.58 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.57 by $0.01. Broadcom had a return on equity of 35.49% and a net margin of 22.64%. The firm had revenue of $15 billion during the quarter, compared to the consensus estimate of $14.98 billion. During the same period in the prior year, the business earned $10.96 EPS. The business’s revenue for the quarter was up 20.2% on a year-over-year basis. As a group, research analysts anticipate that Broadcom Inc. will post 5.38 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Monday, June 30th. Shareholders of record on Friday, June 20th will be given a $0.59 dividend. The ex-dividend date is Friday, June 20th. This represents a $2.36 dividend on an annualized basis and a yield of 0.89%. Broadcom’s payout ratio is 88.39%.

Broadcom declared that its board has approved a stock repurchase plan on Monday, April 7th that authorizes the company to buyback $10.00 billion in outstanding shares. This buyback authorization authorizes the semiconductor manufacturer to purchase up to 1.4% of its stock through open market purchases. Stock buyback plans are often an indication that the company’s leadership believes its stock is undervalued.

Insider Transactions at Broadcom

In other Broadcom news, CFO Kirsten M. Spears sold 56,310 shares of Broadcom stock in a transaction that occurred on Wednesday, June 18th. The shares were sold at an average price of $251.75, for a total value of $14,176,042.50. Following the completion of the sale, the chief financial officer now directly owns 361,937 shares in the company, valued at $91,117,639.75. The trade was a 13.46% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Hock E. Tan sold 40,000 shares of the business’s stock in a transaction that occurred on Tuesday, June 24th. The stock was sold at an average price of $262.17, for a total transaction of $10,486,800.00. Following the completion of the sale, the chief executive officer now directly owns 974,152 shares of the company’s stock, valued at $255,393,429.84. This represents a 3.94% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 301,468 shares of company stock valued at $74,670,250. 2.00% of the stock is owned by insiders.

Institutional Investors Weigh In On Broadcom

Several institutional investors and hedge funds have recently modified their holdings of AVGO. Canton Hathaway LLC acquired a new position in shares of Broadcom during the 4th quarter valued at about $26,000. Rialto Wealth Management LLC acquired a new position in Broadcom during the fourth quarter valued at approximately $26,000. Sunbeam Capital Management LLC bought a new position in shares of Broadcom in the fourth quarter valued at approximately $28,000. Vermillion Wealth Management Inc. acquired a new stake in shares of Broadcom in the fourth quarter worth $30,000. Finally, Sellwood Investment Partners LLC acquired a new position in Broadcom in the 4th quarter valued at $32,000. Institutional investors and hedge funds own 76.43% of the company’s stock.

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.