Broadcom (NASDAQ:AVGO) Stock Price Up 1.1% – Still a Buy?

Broadcom Inc. (NASDAQ:AVGO) shares were up 1.1% during trading on Tuesday . The stock traded as high as $182.26 and last traded at $180.29. Approximately 4,685,559 shares were traded during mid-day trading, a decline of 85% from the average daily volume of 31,238,851 shares. The stock had previously closed at $178.36.

Analysts Set New Price Targets

A number of equities analysts have issued reports on AVGO shares. Rosenblatt Securities reiterated a “buy” rating and set a $250.00 target price on shares of Broadcom in a report on Friday, March 7th. Mizuho decreased their price objective on Broadcom from $260.00 to $250.00 and set an “outperform” rating for the company in a report on Friday, March 7th. KeyCorp boosted their target price on Broadcom from $260.00 to $275.00 and gave the company an “overweight” rating in a research note on Friday, March 7th. Truist Financial lifted their price objective on shares of Broadcom from $260.00 to $267.00 and gave the company a “buy” rating in a report on Friday, March 7th. Finally, William Blair restated an “outperform” rating on shares of Broadcom in a report on Friday, March 7th. Three research analysts have rated the stock with a hold rating and twenty-five have issued a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $231.28.

Broadcom Price Performance

The firm has a market capitalization of $821.01 billion, a price-to-earnings ratio of 142.42, a P/E/G ratio of 2.29 and a beta of 1.05. The company’s 50 day moving average is $192.40 and its 200 day moving average is $195.88. The company has a quick ratio of 1.07, a current ratio of 1.17 and a debt-to-equity ratio of 0.98.

Broadcom Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, March 31st. Stockholders of record on Thursday, March 20th were issued a dividend of $0.59 per share. The ex-dividend date was Thursday, March 20th. This represents a $2.36 annualized dividend and a dividend yield of 1.35%. Broadcom’s dividend payout ratio is presently 113.46%.

Broadcom announced that its Board of Directors has initiated a stock repurchase plan on Monday, April 7th that authorizes the company to repurchase $10.00 billion in shares. This repurchase authorization authorizes the semiconductor manufacturer to purchase up to 1.4% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s management believes its stock is undervalued.

Insider Buying and Selling

In other Broadcom news, Director Justine Page sold 800 shares of the stock in a transaction dated Monday, April 14th. The shares were sold at an average price of $185.00, for a total transaction of $148,000.00. Following the sale, the director now directly owns 25,380 shares in the company, valued at $4,695,300. This represents a 3.06 % decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Henry Samueli sold 663,976 shares of the business’s stock in a transaction that occurred on Wednesday, March 26th. The shares were sold at an average price of $181.60, for a total transaction of $120,578,041.60. Following the completion of the transaction, the director now owns 38,798,721 shares of the company’s stock, valued at $7,045,847,733.60. The trade was a 1.68 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 719,776 shares of company stock valued at $131,065,542 over the last 90 days. 2.00% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in AVGO. Sound Income Strategies LLC boosted its holdings in shares of Broadcom by 11.2% in the 1st quarter. Sound Income Strategies LLC now owns 1,641 shares of the semiconductor manufacturer’s stock valued at $275,000 after purchasing an additional 165 shares in the last quarter. CogentBlue Wealth Advisors LLC lifted its position in shares of Broadcom by 26.3% during the 1st quarter. CogentBlue Wealth Advisors LLC now owns 1,204 shares of the semiconductor manufacturer’s stock worth $202,000 after buying an additional 251 shares during the last quarter. Prentice Wealth Management LLC boosted its stake in Broadcom by 73.6% in the first quarter. Prentice Wealth Management LLC now owns 11,286 shares of the semiconductor manufacturer’s stock valued at $1,890,000 after buying an additional 4,784 shares in the last quarter. Foster Victor Wealth Advisors LLC grew its position in Broadcom by 23.5% in the first quarter. Foster Victor Wealth Advisors LLC now owns 78,135 shares of the semiconductor manufacturer’s stock valued at $14,216,000 after acquiring an additional 14,871 shares during the last quarter. Finally, Blodgett Wealth Advisors LLC raised its stake in Broadcom by 1.6% during the first quarter. Blodgett Wealth Advisors LLC now owns 5,516 shares of the semiconductor manufacturer’s stock worth $924,000 after acquiring an additional 88 shares in the last quarter. 76.43% of the stock is owned by institutional investors.

About Broadcom

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.