Wall Street brokerages predict that Broadcom Inc (NASDAQ:AVGO) will report $5.06 billion in sales for the current quarter, according to Zacks Investment Research. Eleven analysts have issued estimates for Broadcom’s earnings, with estimates ranging from $5.05 billion to $5.08 billion. Broadcom reported sales of $4.46 billion during the same quarter last year, which would suggest a positive year over year growth rate of 13.5%. The firm is expected to report its next quarterly earnings results on Thursday, August 23rd.
According to Zacks, analysts expect that Broadcom will report full year sales of $20.79 billion for the current fiscal year, with estimates ranging from $20.69 billion to $20.95 billion. For the next year, analysts expect that the company will post sales of $21.41 billion per share, with estimates ranging from $21.05 billion to $21.82 billion. Zacks Investment Research’s sales averages are an average based on a survey of sell-side research firms that follow Broadcom.
Broadcom (NASDAQ:AVGO) last released its earnings results on Thursday, June 7th. The semiconductor manufacturer reported $4.88 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.05 by $0.83. The business had revenue of $5.02 billion for the quarter, compared to the consensus estimate of $5 billion. Broadcom had a return on equity of 30.85% and a net margin of 56.32%. Broadcom’s quarterly revenue was up 19.4% on a year-over-year basis. During the same quarter in the previous year, the business earned $3.69 earnings per share.
A number of research firms recently issued reports on AVGO. BidaskClub raised Broadcom from a “buy” rating to a “strong-buy” rating in a research report on Saturday, June 16th. Benchmark began coverage on Broadcom in a research report on Friday, June 15th. They set a “buy” rating and a $300.00 price target on the stock. Drexel Hamilton reissued a “buy” rating and set a $313.00 price target (up previously from $302.00) on shares of Broadcom in a research report on Friday, March 16th. Jefferies Financial Group reissued a “buy” rating and set a $332.00 price target on shares of Broadcom in a research report on Friday, March 16th. Finally, Canaccord Genuity reissued a “buy” rating and set a $340.00 price target (up previously from $325.00) on shares of Broadcom in a research report on Friday, March 16th. One analyst has rated the stock with a sell rating, three have assigned a hold rating, thirty-two have assigned a buy rating and two have given a strong buy rating to the company. The company presently has a consensus rating of “Buy” and an average price target of $311.48.
In related news, Director Lake Group L.L.C. Silver purchased 344,761 shares of the business’s stock in a transaction that occurred on Friday, April 13th. The stock was acquired at an average cost of $247.94 per share, for a total transaction of $85,480,042.34. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Kirsten M. Spears sold 5,000 shares of the business’s stock in a transaction that occurred on Tuesday, March 27th. The shares were sold at an average price of $249.86, for a total value of $1,249,300.00. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 85,604 shares of company stock valued at $22,207,492. Corporate insiders own 3.30% of the company’s stock.
Several hedge funds have recently modified their holdings of AVGO. Global X Management Co. LLC boosted its stake in shares of Broadcom by 31.7% in the fourth quarter. Global X Management Co. LLC now owns 2,684 shares of the semiconductor manufacturer’s stock valued at $690,000 after buying an additional 646 shares during the period. Virtu Financial LLC bought a new stake in shares of Broadcom in the fourth quarter valued at approximately $1,632,000. Mariner Wealth Advisors LLC boosted its stake in shares of Broadcom by 91.4% in the fourth quarter. Mariner Wealth Advisors LLC now owns 2,012 shares of the semiconductor manufacturer’s stock valued at $517,000 after buying an additional 961 shares during the period. Arrowstreet Capital Limited Partnership boosted its stake in shares of Broadcom by 2,215.8% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 76,422 shares of the semiconductor manufacturer’s stock valued at $19,633,000 after buying an additional 73,122 shares during the period. Finally, Alexandria Capital LLC boosted its stake in shares of Broadcom by 12,741.2% in the fourth quarter. Alexandria Capital LLC now owns 8,732 shares of the semiconductor manufacturer’s stock valued at $2,243,000 after buying an additional 8,664 shares during the period. Institutional investors and hedge funds own 86.85% of the company’s stock.
Shares of NASDAQ:AVGO traded up $0.06 during midday trading on Thursday, reaching $259.71. The company had a trading volume of 5,241,177 shares, compared to its average volume of 3,378,864. 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 company has a market cap of $112.09 billion, a P/E ratio of 18.16, a P/E/G ratio of 1.18 and a beta of 0.93. Broadcom has a 1-year low of $221.98 and a 1-year high of $285.68.
Broadcom announced that its Board of Directors has initiated a share repurchase program on Thursday, April 12th that permits the company to buyback $12.00 billion in shares. This buyback authorization permits the semiconductor manufacturer to buy up to 12.2% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s leadership believes its stock is undervalued.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 29th. Stockholders of record on Wednesday, June 20th will be issued a dividend of $1.75 per share. This represents a $7.00 dividend on an annualized basis and a dividend yield of 2.70%. The ex-dividend date is Tuesday, June 19th. Broadcom’s dividend payout ratio is presently 48.95%.
Broadcom Inc 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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