Broadcom Limited (AVGO) Stock Rating Lowered by Zacks Investment Research
Broadcom Limited (NASDAQ:AVGO) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Thursday.
According to Zacks, “Broadcom has outperformed the industry on a year-to-date basis. The company is benefiting from synergies it gained from the merger with Avago, which will continue to drive profitability. We note that seasonal strength in broadband access and sustained cloud data center spending is positive. The company's expanding portfolio is a key catalyst in the long haul. The company has received U.S. antitrust approval for the buyout of Brocade Communications Systems. The deal had already received approval in Europe and Japan. We believe that this acquisition will definitely boost Broadcom’s top line growth, as it solidifies footprint in the network storage devices market. Meanwhile, estimates have been stable lately ahead of the company's Q3 earnings release. The company has positive record of earnings surprises in recent quarters. However, customer concentration is a signficant headwind.”
Several other research firms have also commented on AVGO. MKM Partners reissued a “buy” rating and set a $261.00 target price (up from $250.00) on shares of Broadcom Limited in a research note on Friday, June 2nd. Oppenheimer Holdings, Inc. reissued an “outperform” rating and set a $275.00 target price (up from $240.00) on shares of Broadcom Limited in a research note on Friday, June 2nd. Canaccord Genuity reissued a “buy” rating and set a $272.00 target price (up from $250.00) on shares of Broadcom Limited in a research note on Saturday, June 3rd. Morgan Stanley reissued an “overweight” rating and set a $280.00 target price (up from $265.00) on shares of Broadcom Limited in a research note on Saturday, June 3rd. Finally, Mizuho reissued a “buy” rating and set a $275.00 target price (up from $265.00) on shares of Broadcom Limited in a research note on Saturday, June 3rd. Two equities research analysts have rated the stock with a hold rating, thirty-six have issued a buy rating and one has given a strong buy rating to the company’s stock. The company presently has an average rating of “Buy” and a consensus target price of $263.22.
Broadcom Limited (AVGO) traded down 2.55% during midday trading on Thursday, hitting $246.95. 2,279,288 shares of the stock were exchanged. The firm’s 50-day moving average is $247.06 and its 200 day moving average is $230.12. Broadcom Limited has a 52 week low of $158.75 and a 52 week high of $258.49. The stock’s market cap is $100.41 billion. Broadcom Limited also was the target of some unusual options trading activity on Monday. Stock traders bought 10,775 call options on the stock. This is an increase of 177% compared to the average daily volume of 3,886 call options.
Broadcom Limited (NASDAQ:AVGO) last released its earnings results on Thursday, June 1st. The semiconductor manufacturer reported $3.69 EPS for the quarter, beating the consensus estimate of $3.50 by $0.19. Broadcom Limited had a negative net margin of 1.54% and a positive return on equity of 24.15%. The business had revenue of $4.20 billion during the quarter, compared to analyst estimates of $4.11 billion. During the same period in the prior year, the business earned $2.53 earnings per share. The business’s quarterly revenue was up 17.9% on a year-over-year basis. Equities research analysts expect that Broadcom Limited will post $15.78 EPS for the current fiscal year.
In other Broadcom Limited news, SVP Bryan Ingram sold 30,000 shares of the firm’s stock in a transaction on Thursday, June 8th. The shares were sold at an average price of $253.41, for a total value of $7,602,300.00. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. Also, insider Kirsten M. Spears sold 1,306 shares of the firm’s stock in a transaction on Thursday, June 8th. The stock was sold at an average price of $254.15, for a total transaction of $331,919.90. The disclosure for this sale can be found here. Insiders sold a total of 41,306 shares of company stock worth $10,380,120 over the last 90 days. Company insiders own 3.60% of the company’s stock.
A number of hedge funds have recently bought and sold shares of the company. Cetera Investment Advisers bought a new stake in Broadcom Limited during the second quarter valued at about $228,000. Advisory Services Network LLC raised its stake in Broadcom Limited by 36.2% in the second quarter. Advisory Services Network LLC now owns 11,184 shares of the semiconductor manufacturer’s stock valued at $2,606,000 after buying an additional 2,974 shares in the last quarter. Dynamic Technology Lab Private Ltd bought a new stake in Broadcom Limited during the second quarter valued at about $1,671,000. WINTON GROUP Ltd raised its stake in Broadcom Limited by 5.4% in the second quarter. WINTON GROUP Ltd now owns 36,533 shares of the semiconductor manufacturer’s stock valued at $8,514,000 after buying an additional 1,858 shares in the last quarter. Finally, Mountain Capital Investment Advisors Inc bought a new stake in Broadcom Limited during the second quarter valued at about $113,000. Institutional investors own 90.94% of the company’s stock.
Broadcom Limited Company Profile
Broadcom Limited is a designer, developer and global supplier of a range of semiconductor devices with a focus on digital and mixed signal complementary metal oxide semiconductor (CMOS)-based devices and analog III-V based products. The Company operates through four segments: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial & Other.
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