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

Broadcom Inc. (NASDAQ:AVGO) shares gapped down prior to trading on Monday . The stock had previously closed at $244.70, but opened at $213.40. Broadcom shares last traded at $213.51, with a volume of 22,188,012 shares.

Analysts Set New Price Targets

Several research firms recently commented on AVGO. Rosenblatt Securities reiterated a “buy” rating and issued a $240.00 price objective on shares of Broadcom in a report on Wednesday, December 11th. Piper Sandler raised their price objective on Broadcom from $200.00 to $250.00 and gave the company an “overweight” rating in a research report on Friday, December 13th. Bank of America raised their price objective on shares of Broadcom from $215.00 to $250.00 and gave the stock a “buy” rating in a research note on Friday, December 13th. Benchmark restated a “buy” rating and set a $255.00 target price (up from $210.00) on shares of Broadcom in a report on Friday, December 13th. Finally, Morgan Stanley lifted their price target on shares of Broadcom from $233.00 to $265.00 and gave the company an “overweight” rating in a research report on Friday, December 20th. Three research analysts have rated the stock with a hold rating and twenty-four have given a buy rating to the stock. Based on data from MarketBeat.com, Broadcom currently has an average rating of “Moderate Buy” and a consensus price target of $225.83.

Broadcom Stock Down 16.8 %

The company has a market capitalization of $954.31 billion, a PE ratio of 167.54, a price-to-earnings-growth ratio of 2.52 and a beta of 1.03. The company has a quick ratio of 1.07, a current ratio of 1.17 and a debt-to-equity ratio of 0.98. The firm has a 50-day moving average of $208.80 and a two-hundred day moving average of $180.62.

Broadcom (NASDAQ:AVGO) last issued its earnings results on Thursday, December 12th. The semiconductor manufacturer reported $1.42 earnings per share for the quarter, beating analysts’ consensus estimates of $1.39 by $0.03. Broadcom had a return on equity of 28.00% and a net margin of 11.43%. The firm had revenue of $14.05 billion for the quarter, compared to analysts’ expectations of $14.07 billion. During the same quarter last year, the firm earned $0.98 earnings per share. The firm’s revenue for the quarter was up 51.2% compared to the same quarter last year. Equities research analysts predict that Broadcom Inc. will post 5.38 earnings per share for the current fiscal year.

Broadcom Increases Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, December 31st. Stockholders of record on Monday, December 23rd were paid a $0.59 dividend. This represents a $2.36 dividend on an annualized basis and a dividend yield of 1.16%. This is a boost from Broadcom’s previous quarterly dividend of $0.53. The ex-dividend date was Monday, December 23rd. Broadcom’s payout ratio is presently 192.50%.

Insiders Place Their Bets

In related news, insider Mark David Brazeal sold 20,168 shares of the business’s stock in a transaction dated Tuesday, December 24th. The stock was sold at an average price of $238.79, for a total value of $4,815,916.72. Following the completion of the transaction, the insider now owns 321,660 shares of the company’s stock, valued at $76,809,191.40. The trade was a 5.90 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Harry L. You sold 6,540 shares of the business’s stock in a transaction on Tuesday, December 17th. The stock was sold at an average price of $240.00, for a total transaction of $1,569,600.00. Following the completion of the sale, the director now directly owns 30,450 shares in the company, valued at approximately $7,308,000. This represents a 17.68 % decrease in their position. The disclosure for this sale can be found here. Insiders sold 191,278 shares of company stock worth $44,964,800 over the last three months. 2.00% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Broadcom

Hedge funds have recently bought and sold shares of the business. Spirit of America Management Corp NY raised its holdings in shares of Broadcom by 9.1% in the 4th quarter. Spirit of America Management Corp NY now owns 3,600 shares of the semiconductor manufacturer’s stock valued at $835,000 after purchasing an additional 300 shares in the last quarter. Hager Investment Management Services LLC purchased a new position in shares of Broadcom during the 4th quarter worth approximately $9,870,000. Stratos Investment Management LLC grew its position in shares of Broadcom by 44.1% during the fourth quarter. Stratos Investment Management LLC now owns 85,308 shares of the semiconductor manufacturer’s stock worth $19,778,000 after buying an additional 26,087 shares in the last quarter. Sargent Investment Group LLC grew its holdings in shares of Broadcom by 82.9% during the fourth quarter. Sargent Investment Group LLC now owns 7,279 shares of the semiconductor manufacturer’s stock worth $1,640,000 after purchasing an additional 3,299 shares during the last quarter. Finally, Old North State Wealth Management LLC raised its stake in shares of Broadcom by 13.3% during the 4th quarter. Old North State Wealth Management LLC now owns 1,458 shares of the semiconductor manufacturer’s stock worth $339,000 after buying an additional 171 shares in the last quarter. Institutional investors 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.