Key Points
- Insider sale: Director Mark David Brazeal sold 24,527 shares on Dec. 16 at an average price of $340.91 for a total of $8.36 million, trimming his stake by 7.45% to 304,775 shares (≈$103.9 million).
- Earnings beat: Broadcom reported $1.95 EPS vs. $1.87 expected and revenue of $18.02 billion (up 28.2% year-over-year), along with strong margins (net margin 36.2%, ROE 37.45%).
- Dividend and analyst optimism: The company raised its quarterly dividend to $0.65 (ex-dividend Dec. 22) and several firms boosted price targets, leaving a MarketBeat consensus rating of "Buy" with a $435.96 target.
Broadcom Inc. (NASDAQ:AVGO - Get Free Report) insider Charlie Kawwas sold 1,235 shares of the stock in a transaction that occurred on Tuesday, December 16th. The shares were sold at an average price of $340.98, for a total transaction of $421,110.30. Following the completion of the transaction, the insider owned 25,510 shares in the company, valued at $8,698,399.80. This represents a 4.62% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink.
Broadcom Price Performance
AVGO opened at $329.88 on Friday. The company has a fifty day moving average price of $362.66 and a two-hundred day moving average price of $320.02. The firm has a market capitalization of $1.56 trillion, a PE ratio of 69.30, a P/E/G ratio of 1.09 and a beta of 1.19. Broadcom Inc. has a 52 week low of $138.10 and a 52 week high of $414.61. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.58 and a current ratio of 1.71.
Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings results on Thursday, December 11th. The semiconductor manufacturer reported $1.95 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.87 by $0.08. Broadcom had a return on equity of 37.45% and a net margin of 36.20%.The business had revenue of $18.02 billion for the quarter, compared to analyst estimates of $17.46 billion. During the same period last year, the company earned $1.42 EPS. The firm's revenue was up 28.2% on a year-over-year basis. As a group, analysts anticipate that Broadcom Inc. will post 5.38 earnings per share for the current year.
Broadcom Increases Dividend
The business also recently announced a quarterly dividend, which will be paid on Wednesday, December 31st. Shareholders of record on Monday, December 22nd will be issued a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a yield of 0.8%. This is an increase from Broadcom's previous quarterly dividend of $0.59. The ex-dividend date is Monday, December 22nd. Broadcom's dividend payout ratio (DPR) is 54.62%.
Hedge Funds Weigh In On Broadcom
Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Arthur M. Cohen & Associates LLC grew its holdings in Broadcom by 0.6% during the third quarter. Arthur M. Cohen & Associates LLC now owns 4,781 shares of the semiconductor manufacturer's stock worth $1,577,000 after buying an additional 30 shares in the last quarter. Jackson Hole Capital Partners LLC boosted its stake in shares of Broadcom by 1.4% in the 3rd quarter. Jackson Hole Capital Partners LLC now owns 2,170 shares of the semiconductor manufacturer's stock worth $716,000 after buying an additional 30 shares during the last quarter. Private Wealth Partners LLC grew its holdings in shares of Broadcom by 0.7% in the third quarter. Private Wealth Partners LLC now owns 4,273 shares of the semiconductor manufacturer's stock valued at $1,410,000 after acquiring an additional 30 shares in the last quarter. Planning Alternatives Ltd. ADV increased its position in shares of Broadcom by 1.4% during the third quarter. Planning Alternatives Ltd. ADV now owns 2,168 shares of the semiconductor manufacturer's stock valued at $715,000 after acquiring an additional 30 shares during the last quarter. Finally, Bell Investment Advisors Inc lifted its holdings in Broadcom by 1.9% during the third quarter. Bell Investment Advisors Inc now owns 1,638 shares of the semiconductor manufacturer's stock worth $540,000 after acquiring an additional 30 shares during the period. 76.43% of the stock is owned by institutional investors and hedge funds.
Wall Street Analyst Weigh In
AVGO has been the topic of a number of analyst reports. Susquehanna reiterated a "positive" rating and issued a $450.00 price target (up from $400.00) on shares of Broadcom in a research report on Thursday, December 4th. Truist Financial upped their target price on shares of Broadcom from $500.00 to $510.00 and gave the company a "buy" rating in a research note on Friday. Deutsche Bank Aktiengesellschaft set a $430.00 target price on shares of Broadcom and gave the stock a "buy" rating in a report on Friday, December 12th. Argus boosted their price target on shares of Broadcom from $285.00 to $375.00 and gave the company a "buy" rating in a report on Monday, September 8th. Finally, KeyCorp reaffirmed an "overweight" rating and set a $500.00 price objective (up previously from $460.00) on shares of Broadcom in a research note on Friday, December 12th. Three research analysts have rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and one has assigned a Hold rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Buy" and an average price target of $436.33.
View Our Latest Stock Report on Broadcom
About Broadcom
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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.
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