Zacks Investment Research Downgrades Broadcom (AVGO) to Hold

Broadcom (NASDAQ:AVGO) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a note issued to investors on Wednesday.

According to Zacks, “Broadcom is benefiting from strong demand of its wireless solutions and expanding product portfolio, which makes it well-positioned to address the needs of rapidly growing technologies like IoT and 5G. Broadcom recently raised its bid to acquire all outstanding shares of Qualcomm. This deal will make it the third-largest chipmaker, behind Intel and Samsung. Broadcom also has strong ties with leading OEMs across multiple target markets that will help it to gain key insights into the requirements of customers. Moreover, the upcoming launch of the next generation WiFi products is expected to be a growth driver for the segment. Further, increasing traction of 10G technology to support broadband video delivery will boost Wired Infrastructure revenues. However, customer concentration, intensifying competition, integration risks due to frequent acquisitions and leverage balance sheet are key headwinds.”

Several other equities research analysts have also issued reports on the company. KeyCorp reissued an “overweight” rating and set a $320.00 price target (up from $290.00) on shares of Broadcom in a research report on Monday, December 4th. Sanford C. Bernstein reaffirmed an “outperform” rating and set a $285.00 target price on shares of Broadcom in a research note on Tuesday, October 10th. BidaskClub cut Broadcom from a “hold” rating to a “sell” rating in a research note on Thursday, January 11th. Barclays raised their target price on Broadcom from $290.00 to $300.00 and gave the company an “overweight” rating in a research note on Wednesday, October 18th. Finally, Credit Suisse Group reaffirmed a “buy” rating on shares of Broadcom in a research note on Tuesday, January 23rd. One research analyst has rated the stock with a sell rating, three have given a hold rating, thirty-three have issued a buy rating and one has issued a strong buy rating to the stock. The stock presently has a consensus rating of “Buy” and an average target price of $301.33.

Broadcom (NASDAQ:AVGO) traded up $0.76 during trading hours on Wednesday, reaching $241.14. 2,582,070 shares of the company were exchanged, compared to its average volume of 3,976,823. Broadcom has a 1 year low of $202.61 and a 1 year high of $285.68. The company has a current ratio of 6.26, a quick ratio of 5.68 and a debt-to-equity ratio of 0.75. The stock has a market cap of $97,860.00, a price-to-earnings ratio of 61.36, a price-to-earnings-growth ratio of 0.95 and a beta of 0.88.

Broadcom (NASDAQ:AVGO) last posted its quarterly earnings data on Wednesday, December 6th. The semiconductor manufacturer reported $4.59 earnings per share for the quarter, beating analysts’ consensus estimates of $4.52 by $0.07. The firm had revenue of $4.84 billion for the quarter, compared to analyst estimates of $4.84 billion. Broadcom had a net margin of 10.18% and a return on equity of 28.64%. Broadcom’s quarterly revenue was up 17.1% on a year-over-year basis. During the same period last year, the firm posted $3.47 EPS. equities research analysts anticipate that Broadcom will post 17.41 earnings per share for the current year.

In other news, insider Hock E. Tan sold 20,000 shares of the firm’s stock in a transaction dated Tuesday, January 16th. The stock was sold at an average price of $265.21, for a total transaction of $5,304,200.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Thomas H. Krause sold 656 shares of the firm’s stock in a transaction dated Monday, December 18th. The stock was sold at an average price of $264.38, for a total value of $173,433.28. The disclosure for this sale can be found here. Insiders have sold a total of 86,674 shares of company stock valued at $22,659,390 over the last 90 days. Corporate insiders own 3.60% of the company’s stock.

Several institutional investors and hedge funds have recently bought and sold shares of AVGO. Jennison Associates LLC grew its stake in Broadcom by 8.1% in 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 acquiring an additional 418,420 shares during the period. Bank of New York Mellon Corp boosted its holdings in shares of Broadcom by 0.7% in the 3rd quarter. Bank of New York Mellon Corp now owns 5,309,909 shares of the semiconductor manufacturer’s stock valued at $1,287,864,000 after purchasing an additional 36,356 shares in the last quarter. Janus Henderson Group PLC boosted its holdings in shares of Broadcom by 80.3% in the 3rd quarter. Janus Henderson Group PLC now owns 3,397,443 shares of the semiconductor manufacturer’s stock valued at $823,980,000 after purchasing an additional 1,512,956 shares in the last quarter. Allianz Asset Management GmbH boosted its holdings in shares of Broadcom by 12.2% in the 3rd quarter. Allianz Asset Management GmbH now owns 2,736,846 shares of the semiconductor manufacturer’s stock valued at $663,795,000 after purchasing an additional 297,100 shares in the last quarter. Finally, Wells Fargo & Company MN boosted its holdings in shares of Broadcom by 7.1% in the 3rd quarter. Wells Fargo & Company MN now owns 2,223,092 shares of the semiconductor manufacturer’s stock valued at $539,188,000 after purchasing an additional 147,737 shares in the last quarter. 88.54% of the stock is owned by institutional investors.

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Broadcom 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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