Broadcom (AVGO) Hits New 1-Year High Following Better-Than-Expected Earnings

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Broadcom Inc (NASDAQ:AVGO) shares hit a new 52-week high on Friday following a better than expected earnings announcement. The stock traded as high as $299.55 and last traded at $292.70, with a volume of 7045032 shares changing hands. The stock had previously closed at $268.20.

The semiconductor manufacturer reported $5.55 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $4.32 by $1.23. Broadcom had a return on equity of 29.03% and a net margin of 58.80%. The firm had revenue of $5.79 billion for the quarter, compared to analysts’ expectations of $5.83 billion. During the same period last year, the firm earned $5.12 earnings per share. The company’s revenue for the quarter was up 8.6% compared to the same quarter last year.

The business also recently disclosed a quarterly dividend, which will be paid on Friday, March 29th. Stockholders of record on Thursday, March 21st will be paid a dividend of $2.65 per share. This represents a $10.60 dividend on an annualized basis and a dividend yield of 3.65%. Broadcom’s dividend payout ratio (DPR) is currently 56.29%.

AVGO has been the topic of several recent research reports. UBS Group reduced their price target on Broadcom from $300.00 to $275.00 and set a “buy” rating on the stock in a research report on Friday, December 7th. Craig Hallum restated a “buy” rating and set a $305.00 price target (up from $300.00) on shares of Broadcom in a research report on Friday, December 7th. Charter Equity upgraded Broadcom from a “market perform” rating to a “buy” rating in a research report on Friday, December 7th. Credit Suisse Group restated a “buy” rating and set a $300.00 price target on shares of Broadcom in a research report on Wednesday, December 5th. Finally, BidaskClub cut shares of Broadcom from a “strong-buy” rating to a “buy” rating in a report on Tuesday, December 4th. Ten analysts have rated the stock with a hold rating and thirty-two have issued a buy rating to the company’s stock. Broadcom has an average rating of “Buy” and an average target price of $288.16.

In other news, Director Donald Macleod sold 5,223 shares of Broadcom stock in a transaction dated Monday, January 7th. The shares were sold at an average price of $233.65, for a total transaction of $1,220,353.95. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Hock E. Tan sold 20,000 shares of Broadcom stock in a transaction dated Monday, December 17th. The shares were sold at an average price of $256.47, for a total transaction of $5,129,400.00. The disclosure for this sale can be found here. In the last quarter, insiders sold 45,223 shares of company stock worth $11,449,554. 3.30% of the stock is currently owned by company insiders.

Several institutional investors and hedge funds have recently made changes to their positions in AVGO. Vanguard Group Inc. boosted its position in shares of Broadcom by 6.6% during the third quarter. Vanguard Group Inc. now owns 33,632,811 shares of the semiconductor manufacturer’s stock valued at $8,298,223,000 after purchasing an additional 2,094,847 shares in the last quarter. Vanguard Group Inc boosted its holdings in shares of Broadcom by 6.6% during the 3rd quarter. Vanguard Group Inc now owns 33,632,811 shares of the semiconductor manufacturer’s stock valued at $8,298,223,000 after buying an additional 2,094,847 shares in the last quarter. Capital International Investors boosted its holdings in shares of Broadcom by 504.1% during the 3rd quarter. Capital International Investors now owns 27,509,769 shares of the semiconductor manufacturer’s stock valued at $6,787,485,000 after buying an additional 22,955,578 shares in the last quarter. BlackRock Inc. boosted its holdings in shares of Broadcom by 0.8% during the 3rd quarter. BlackRock Inc. now owns 25,930,258 shares of the semiconductor manufacturer’s stock valued at $6,397,772,000 after buying an additional 209,280 shares in the last quarter. Finally, Capital Research Global Investors boosted its holdings in shares of Broadcom by 16.3% during the 3rd quarter. Capital Research Global Investors now owns 25,694,725 shares of the semiconductor manufacturer’s stock valued at $6,339,659,000 after buying an additional 3,608,395 shares in the last quarter. 83.49% of the stock is currently owned by hedge funds and other institutional investors.

The company has a current ratio of 3.90, a quick ratio of 3.41 and a debt-to-equity ratio of 0.66. The company has a market capitalization of $106.80 billion, a P/E ratio of 15.42, a PEG ratio of 1.22 and a beta of 0.67.

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Broadcom Company Profile (NASDAQ:AVGO)

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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