Broadcom (NASDAQ:AVGO) Trading Down 2.7% – Here’s Why

Shares of Broadcom Inc. (NASDAQ:AVGO) traded down 2.7% on Tuesday . The stock traded as low as $201.04 and last traded at $202.37. 9,022,591 shares were traded during trading, a decline of 67% from the average session volume of 27,220,508 shares. The stock had previously closed at $207.93.

Analyst Ratings Changes

AVGO has been the topic of a number of research analyst reports. Jefferies Financial Group raised their price objective on shares of Broadcom from $205.00 to $225.00 and gave the stock a “buy” rating in a report on Friday, December 13th. UBS Group upped their price objective on shares of Broadcom from $170.00 to $200.00 and gave the company a “buy” rating in a research note on Monday, November 4th. Piper Sandler raised their price objective on Broadcom from $200.00 to $250.00 and gave the stock an “overweight” rating in a report on Friday, December 13th. JPMorgan Chase & Co. boosted their target price on Broadcom from $210.00 to $250.00 and gave the company an “overweight” rating in a report on Friday, December 13th. Finally, Deutsche Bank Aktiengesellschaft raised their price target on Broadcom from $190.00 to $240.00 and gave the stock a “buy” rating in a research note on Friday, December 13th. Three equities research analysts have rated the stock with a hold rating and twenty-four have assigned a buy rating to the company. According to MarketBeat.com, Broadcom has an average rating of “Moderate Buy” and an average target price of $225.04.

Broadcom Stock Performance

The stock has a 50 day moving average of $229.25 and a two-hundred day moving average of $190.93. The stock has a market capitalization of $952.69 billion, a PE ratio of 166.23, a P/E/G ratio of 2.29 and a beta of 1.02. The company has a debt-to-equity ratio of 0.98, a current ratio of 1.17 and a quick ratio of 1.07.

Broadcom (NASDAQ:AVGO) last issued its earnings results on Thursday, December 12th. The semiconductor manufacturer reported $1.42 EPS for the quarter, topping the consensus estimate of $1.39 by $0.03. Broadcom had a net margin of 11.43% and a return on equity of 28.00%. The company had revenue of $14.05 billion for the quarter, compared to analyst estimates of $14.07 billion. During the same period in the previous year, the firm earned $0.98 EPS. The business’s revenue was up 51.2% on a year-over-year basis. Research analysts expect that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, December 31st. Shareholders of record on Monday, December 23rd were given a dividend of $0.59 per share. This is a positive change from Broadcom’s previous quarterly dividend of $0.53. This represents a $2.36 annualized dividend and a yield of 1.16%. The ex-dividend date was Monday, December 23rd. Broadcom’s dividend payout ratio is presently 191.87%.

Insider Activity

In other news, insider Mark David Brazeal sold 20,168 shares of the firm’s stock in a transaction on 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 in the company, valued at $76,809,191.40. This trade represents a 5.90 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Kirsten M. Spears sold 12,570 shares of the business’s stock in a transaction dated Friday, December 20th. The stock was sold at an average price of $229.62, for a total transaction of $2,886,323.40. Following the completion of the sale, the chief financial officer now owns 325,443 shares in the company, valued at $74,728,221.66. This represents a 3.72 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 191,278 shares of company stock worth $44,964,800. Company insiders own 2.00% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Integrated Advisors Network LLC grew its holdings in Broadcom by 10.9% during the 4th quarter. Integrated Advisors Network LLC now owns 103,419 shares of the semiconductor manufacturer’s stock valued at $23,977,000 after buying an additional 10,191 shares during the last quarter. Chokshi & Queen Wealth Advisors Inc acquired a new stake in shares of Broadcom during the fourth quarter valued at $3,177,000. Polar Asset Management Partners Inc. increased its position in Broadcom by 344.4% during the 4th quarter. Polar Asset Management Partners Inc. now owns 280,000 shares of the semiconductor manufacturer’s stock worth $64,915,000 after purchasing an additional 217,000 shares in the last quarter. Garde Capital Inc. raised its stake in Broadcom by 11.3% in the 4th quarter. Garde Capital Inc. now owns 12,377 shares of the semiconductor manufacturer’s stock valued at $2,869,000 after purchasing an additional 1,257 shares during the last quarter. Finally, Instrumental Wealth LLC raised its stake in Broadcom by 5.6% in the 4th quarter. Instrumental Wealth LLC now owns 1,372 shares of the semiconductor manufacturer’s stock valued at $300,000 after purchasing an additional 73 shares during the last quarter. 76.43% of the stock is currently owned by institutional investors and hedge funds.

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.