Investors Buy Shares of Broadcom (AVGO) on Weakness

Investors bought shares of Broadcom Inc (NASDAQ:AVGO) on weakness during trading hours on Monday. $228.19 million flowed into the stock on the tick-up and $156.45 million flowed out of the stock on the tick-down, for a money net flow of $71.74 million into the stock. Of all stocks tracked, Broadcom had the 16th highest net in-flow for the day. Broadcom traded down ($7.29) for the day and closed at $252.42

A number of research firms have weighed in on AVGO. Loop Capital began coverage on shares of Broadcom in a report on Thursday. They set a “buy” rating and a $306.00 price objective on the stock. BidaskClub raised shares of Broadcom from a “buy” rating to a “strong-buy” rating in a report on Saturday, June 16th. Benchmark began coverage on shares of Broadcom in a report on Friday, June 15th. They set a “buy” rating and a $300.00 price objective on the stock. Zacks Investment Research cut shares of Broadcom from a “hold” rating to a “sell” rating in a report on Monday, June 11th. Finally, Sanford C. Bernstein set a $320.00 price objective on shares of Broadcom and gave the stock a “buy” rating in a report on Friday, June 8th. One investment analyst has rated the stock with a sell rating, three have given a hold rating, thirty-two have assigned a buy rating and two have given a strong buy rating to the stock. The stock currently has an average rating of “Buy” and a consensus target price of $311.48.

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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 stock has a market cap of $112.11 billion, a price-to-earnings ratio of 17.65, a price-to-earnings-growth ratio of 1.18 and a beta of 0.93.

Broadcom (NASDAQ:AVGO) last posted its quarterly earnings data on Thursday, June 7th. The semiconductor manufacturer reported $4.88 earnings per share for the quarter, beating analysts’ consensus estimates of $4.05 by $0.83. Broadcom had a net margin of 56.32% and a return on equity of 30.85%. The firm had revenue of $5.02 billion for the quarter, compared to analyst estimates of $5 billion. During the same period last year, the firm posted $3.69 EPS. Broadcom’s quarterly revenue was up 19.4% on a year-over-year basis. analysts expect that Broadcom Inc will post 17.48 EPS for the current year.

The company also recently disclosed a quarterly dividend, which will be paid on Friday, June 29th. Investors of record on Wednesday, June 20th will be given a $1.75 dividend. The ex-dividend date is Tuesday, June 19th. This represents a $7.00 dividend on an annualized basis and a yield of 2.77%. Broadcom’s dividend payout ratio (DPR) is 48.95%.

Broadcom declared that its board has authorized a share repurchase plan on Thursday, April 12th that permits the company to repurchase $12.00 billion in outstanding shares. This repurchase authorization permits the semiconductor manufacturer to repurchase up to 12.2% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board of directors believes its stock is undervalued.

In other Broadcom news, SVP Bryan Ingram sold 20,000 shares of the firm’s stock in a transaction on Wednesday, June 13th. The stock was sold at an average price of $261.84, for a total value of $5,236,800.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP Charlie B. Kawwas sold 10,000 shares of the firm’s stock in a transaction on Tuesday, May 29th. The shares were sold at an average price of $250.37, for a total value of $2,503,700.00. The disclosure for this sale can be found here. Over the last quarter, insiders sold 85,604 shares of company stock worth $22,207,492. 3.30% of the stock is currently owned by insiders.

A number of institutional investors have recently added to or reduced their stakes in AVGO. Coatue Management LLC lifted its holdings in Broadcom by 28.2% in the fourth quarter. Coatue Management LLC now owns 3,735,957 shares of the semiconductor manufacturer’s stock valued at $959,768,000 after acquiring an additional 821,739 shares during the period. Mackenzie Financial Corp lifted its holdings in Broadcom by 182.5% in the fourth quarter. Mackenzie Financial Corp now owns 623,367 shares of the semiconductor manufacturer’s stock valued at $160,143,000 after acquiring an additional 402,712 shares during the period. Viking Global Investors LP lifted its holdings in Broadcom by 14.4% in the fourth quarter. Viking Global Investors LP now owns 2,466,836 shares of the semiconductor manufacturer’s stock valued at $633,730,000 after acquiring an additional 310,906 shares during the period. Hound Partners LLC acquired a new stake in Broadcom in the fourth quarter valued at $55,711,000. Finally, Amundi Pioneer Asset Management Inc. lifted its holdings in Broadcom by 15.1% in the fourth quarter. Amundi Pioneer Asset Management Inc. now owns 1,637,702 shares of the semiconductor manufacturer’s stock valued at $420,726,000 after acquiring an additional 214,652 shares during the period. 86.85% of the stock is owned by institutional investors.

Broadcom Company Profile

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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