Traders Sell Broadcom (AVGO) on Strength (AVGO)

Traders sold shares of Broadcom Inc (NASDAQ:AVGO) on strength during trading hours on Wednesday. $86.14 million flowed into the stock on the tick-up and $164.35 million flowed out of the stock on the tick-down, for a money net flow of $78.21 million out of the stock. Of all equities tracked, Broadcom had the 13th highest net out-flow for the day. Broadcom traded up $2.07 for the day and closed at $240.56

Several analysts have weighed in on AVGO shares. Zacks Investment Research raised Broadcom from a “hold” rating to a “buy” rating and set a $255.00 price target on the stock in a report on Tuesday, February 6th. B. Riley reissued a “buy” rating and set a $335.00 price objective (up from $330.00) on shares of Broadcom in a report on Thursday, February 1st. Canaccord Genuity raised their price objective on Broadcom from $100.00 to $325.00 and gave the company a “buy” rating in a report on Wednesday, January 31st. Vetr raised Broadcom from a “hold” rating to a “buy” rating and set a $269.37 price objective on the stock in a report on Thursday, January 25th. Finally, Credit Suisse Group reissued a “buy” rating on shares of Broadcom in a report on Tuesday, January 23rd. One research analyst has rated the stock with a sell rating, four have issued a hold rating, thirty-two have given a buy rating and one has issued a strong buy rating to the stock. The company presently has a consensus rating of “Buy” and a consensus price target of $308.96.

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The stock has a market capitalization of $98.19 billion, a price-to-earnings ratio of 16.82, a P/E/G ratio of 1.14 and a beta of 0.95. The company has a debt-to-equity ratio of 0.60, a current ratio of 5.70 and a quick ratio of 5.04.

Broadcom (NASDAQ:AVGO) last issued its quarterly earnings data on Thursday, March 15th. The semiconductor manufacturer reported $5.12 earnings per share for the quarter, topping the Zacks’ consensus estimate of $4.41 by $0.71. The firm had revenue of $5.33 billion for the quarter, compared to analyst estimates of $5.32 billion. Broadcom had a return on equity of 29.50% and a net margin of 41.37%. The business’s quarterly revenue was up 28.5% compared to the same quarter last year. During the same period last year, the company earned $3.63 EPS. equities analysts expect that Broadcom Inc will post 16.82 EPS for the current year.

Broadcom announced that its Board of Directors has authorized a share buyback program on Thursday, April 12th that allows the company to repurchase $12.00 billion in outstanding shares. This repurchase authorization allows the semiconductor manufacturer to repurchase up to 12.2% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company’s board believes its shares are undervalued.

In other news, insider Kirsten M. Spears sold 199 shares of Broadcom stock in a transaction that occurred on Friday, March 2nd. The stock was sold at an average price of $243.88, for a total value of $48,532.12. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, Director Lake Group L.L.C. Silver acquired 344,761 shares of the business’s stock in a transaction dated Friday, April 13th. The stock was acquired at an average price of $247.94 per share, for a total transaction of $85,480,042.34. The disclosure for this purchase can be found here. Over the last quarter, insiders sold 78,675 shares of company stock worth $20,078,429. Corporate insiders own 3.30% of the company’s stock.

Several hedge funds have recently modified their holdings of the company. BlackRock Inc. grew its position in shares of Broadcom by 2.1% in the 4th quarter. BlackRock Inc. now owns 24,924,233 shares of the semiconductor manufacturer’s stock worth $6,403,033,000 after buying an additional 508,470 shares during the last quarter. Jennison Associates LLC boosted its position in shares of Broadcom by 8.1% during the fourth quarter. Jennison Associates LLC now owns 5,583,858 shares of the semiconductor manufacturer’s stock valued at $1,434,493,000 after purchasing an additional 418,420 shares in the last quarter. Geode Capital Management LLC boosted its position in shares of Broadcom by 3.4% during the fourth quarter. Geode Capital Management LLC now owns 4,141,614 shares of the semiconductor manufacturer’s stock valued at $1,061,670,000 after purchasing an additional 135,437 shares in the last quarter. Coatue Management LLC boosted its position in shares of Broadcom by 28.2% during the fourth quarter. Coatue Management LLC now owns 3,735,957 shares of the semiconductor manufacturer’s stock valued at $959,768,000 after purchasing an additional 821,739 shares in the last quarter. Finally, Viking Global Investors LP boosted its position in shares of Broadcom by 14.4% during 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 purchasing an additional 310,906 shares in the last quarter. Hedge funds and other institutional investors own 86.67% of the company’s stock.

About Broadcom

Broadcom Limited 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.