Broadcom (NASDAQ:AVGO) Shares Down 3.1% on Insider Selling

Broadcom Inc. (NASDAQ:AVGO)’s stock price dropped 3.1% during mid-day trading on Monday after an insider sold shares in the company. The stock traded as low as $231.62 and last traded at $234.16. Approximately 8,794,323 shares were traded during trading, a decline of 71% from the average daily volume of 30,428,896 shares. The stock had previously closed at $241.75.

Specifically, insider Mark David Brazeal sold 20,168 shares of the stock in a transaction that occurred on Tuesday, December 24th. The shares were 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. This represents a 5.90 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Hock E. Tan sold 45,000 shares of the firm’s stock in a transaction that occurred on Tuesday, December 24th. The shares were sold at an average price of $239.96, for a total transaction of $10,798,200.00. Following the completion of the sale, the chief executive officer now owns 842,836 shares in the company, valued at $202,246,926.56. This represents a 5.07 % decrease in their position. The disclosure for this sale can be found here. In other news, Director Diane M. Bryant sold 15,000 shares of the company’s stock in a transaction on Monday, December 23rd. The shares were sold at an average price of $226.68, for a total transaction of $3,400,200.00. Following the completion of the transaction, the director now directly owns 6,460 shares in the company, valued at approximately $1,464,352.80. This represents a 69.90 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website.

Analyst Upgrades and Downgrades

A number of equities analysts have issued reports on the company. Rosenblatt Securities reaffirmed a “buy” rating and issued a $240.00 target price on shares of Broadcom in a report on Wednesday, December 11th. Deutsche Bank Aktiengesellschaft raised their price objective on shares of Broadcom from $190.00 to $240.00 and gave the company a “buy” rating in a report on Friday, December 13th. Hsbc Global Res raised shares of Broadcom to a “hold” rating in a report on Tuesday, December 3rd. TD Cowen raised their price target on shares of Broadcom from $210.00 to $240.00 and gave the company a “buy” rating in a research note on Friday, December 13th. Finally, Citigroup lifted their price target on shares of Broadcom from $175.00 to $205.00 and gave the stock a “buy” rating in a report on Tuesday, December 10th. Three analysts have rated the stock with a hold rating and twenty-four have assigned a buy rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $221.88.

Broadcom Stock Performance

The company has a market capitalization of $1.10 trillion, a price-to-earnings ratio of 203.62, a P/E/G ratio of 2.15 and a beta of 1.13. The company has a 50 day moving average price of $185.54 and a 200 day moving average price of $171.21. The company has a debt-to-equity ratio of 1.02, a quick ratio of 0.94 and a current ratio of 1.04.

Broadcom (NASDAQ:AVGO) last released its quarterly earnings data on Thursday, December 12th. The semiconductor manufacturer reported $1.42 EPS for the quarter, beating the consensus estimate of $1.39 by $0.03. Broadcom had a return on equity of 30.12% and a net margin of 10.88%. The firm had revenue of $14.05 billion during the quarter, compared to the consensus estimate of $14.07 billion. During the same quarter in the previous year, the company posted $0.98 earnings per share. The company’s quarterly revenue was up 51.2% on a year-over-year basis. Equities research analysts predict that Broadcom Inc. will post 3.79 earnings per share for the current fiscal year.

Broadcom Increases Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 31st. Shareholders of record on Monday, December 23rd will be paid a $0.59 dividend. This represents a $2.36 dividend on an annualized basis and a dividend yield of 1.01%. This is a positive change from Broadcom’s previous quarterly dividend of $0.53. The ex-dividend date is Monday, December 23rd. Broadcom’s dividend payout ratio (DPR) is 191.87%.

Institutional Investors Weigh In On Broadcom

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Independent Solutions Wealth Management LLC boosted its position in shares of Broadcom by 846.9% during the third quarter. Independent Solutions Wealth Management LLC now owns 49,136 shares of the semiconductor manufacturer’s stock valued at $8,476,000 after buying an additional 43,947 shares during the last quarter. Syntax Research Inc. lifted its stake in Broadcom by 882.8% during the 3rd quarter. Syntax Research Inc. now owns 6,899 shares of the semiconductor manufacturer’s stock valued at $1,190,000 after acquiring an additional 6,197 shares in the last quarter. SMART Wealth LLC purchased a new position in Broadcom during the 3rd quarter worth $662,000. Lord Abbett & CO. LLC grew its stake in shares of Broadcom by 762.8% in the 3rd quarter. Lord Abbett & CO. LLC now owns 2,181,786 shares of the semiconductor manufacturer’s stock worth $376,358,000 after acquiring an additional 1,928,907 shares in the last quarter. Finally, B. Riley Wealth Advisors Inc. grew its stake in shares of Broadcom by 624.8% in the 3rd quarter. B. Riley Wealth Advisors Inc. now owns 138,687 shares of the semiconductor manufacturer’s stock worth $23,889,000 after acquiring an additional 119,553 shares in the last quarter. 76.43% of the stock is owned by institutional investors.

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.