Broadcom (NASDAQ:AVGO) Trading 1.3% Higher on Earnings Beat

Broadcom Inc. (NASDAQ:AVGOGet Free Report) traded up 1.3% during mid-day trading on Wednesday after the company announced better than expected quarterly earnings. The company traded as high as $1,503.74 and last traded at $1,479.51. 1,239,439 shares changed hands during trading, a decline of 55% from the average session volume of 2,780,055 shares. The stock had previously closed at $1,461.03.

The semiconductor manufacturer reported $10.96 earnings per share (EPS) for the quarter, beating the consensus estimate of $10.78 by $0.18. Broadcom had a net margin of 24.10% and a return on equity of 43.01%. The company had revenue of $12.49 billion during the quarter, compared to analysts’ expectations of $12.06 billion. During the same quarter in the prior year, the company earned $9.51 EPS. Broadcom’s revenue was up 43.0% compared to the same quarter last year.

Broadcom Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 28th. Investors of record on Monday, June 24th will be given a dividend of $5.25 per share. The ex-dividend date is Monday, June 24th. This represents a $21.00 dividend on an annualized basis and a yield of 1.21%. Broadcom’s payout ratio is 90.32%.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on the company. Benchmark reiterated a “buy” rating and set a $1,720.00 price target on shares of Broadcom in a report on Thursday, March 21st. Melius started coverage on shares of Broadcom in a research note on Monday, June 3rd. They set a “buy” rating and a $1,850.00 target price on the stock. TD Cowen increased their price target on shares of Broadcom from $1,500.00 to $1,750.00 and gave the company a “buy” rating in a research note on Thursday. Wells Fargo & Company lifted their price target on shares of Broadcom from $1,430.00 to $1,700.00 and gave the company an “equal weight” rating in a research report on Thursday. Finally, Morgan Stanley reiterated an “overweight” rating and issued a $1,658.00 price objective on shares of Broadcom in a research report on Monday. Three equities research analysts have rated the stock with a hold rating and twenty-six have assigned a buy rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $1,667.48.

Read Our Latest Stock Analysis on Broadcom

Insider Activity at Broadcom

In related news, Director Kenneth Hao sold 9,160 shares of the stock in a transaction on Thursday, March 21st. The stock was sold at an average price of $1,388.13, for a total value of $12,715,270.80. Following the transaction, the director now owns 45 shares of the company’s stock, valued at $62,465.85. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. In related news, Director Kenneth Hao sold 9,160 shares of the company’s stock in a transaction that occurred on Thursday, March 21st. The stock was sold at an average price of $1,388.13, for a total value of $12,715,270.80. Following the completion of the transaction, the director now directly owns 45 shares of the company’s stock, valued at $62,465.85. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Hock E. Tan sold 2,000 shares of the stock in a transaction that occurred on Tuesday, April 2nd. The shares were sold at an average price of $1,312.25, for a total transaction of $2,624,500.00. Following the completion of the transaction, the chief executive officer now owns 168,096 shares in the company, valued at $220,583,976. The disclosure for this sale can be found here. Insiders have sold a total of 26,770 shares of company stock valued at $36,242,096 over the last 90 days. 2.00% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Legend Financial Advisors Inc. boosted its stake in shares of Broadcom by 72.7% during the first quarter. Legend Financial Advisors Inc. now owns 19 shares of the semiconductor manufacturer’s stock worth $25,000 after buying an additional 8 shares during the period. Stuart Chaussee & Associates Inc. purchased a new stake in Broadcom during the 4th quarter valued at approximately $25,000. Richardson Capital Management LLC acquired a new stake in Broadcom during the 1st quarter worth approximately $29,000. Delta Asset Management LLC TN grew its stake in shares of Broadcom by 242.9% in the 1st quarter. Delta Asset Management LLC TN now owns 24 shares of the semiconductor manufacturer’s stock valued at $32,000 after purchasing an additional 17 shares during the last quarter. Finally, PSI Advisors LLC increased its holdings in shares of Broadcom by 66.7% in the fourth quarter. PSI Advisors LLC now owns 25 shares of the semiconductor manufacturer’s stock valued at $28,000 after purchasing an additional 10 shares during the period. Institutional investors and hedge funds own 76.43% of the company’s stock.

Broadcom Price Performance

The company has a 50 day moving average price of $1,352.21 and a 200 day moving average price of $1,245.46. The company has a debt-to-equity ratio of 1.05, a current ratio of 1.34 and a quick ratio of 1.24. The firm has a market cap of $804.05 billion, a PE ratio of 73.37, a PEG ratio of 2.99 and a beta of 1.17.

Shares of Broadcom are scheduled to split before the market opens on Monday, July 15th. The 10-1 split was announced on Wednesday, June 12th. The newly minted shares will be distributed to shareholders after the closing bell on Friday, July 12th.

About Broadcom

(Get Free Report)

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.

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