Broadcom (NASDAQ:AVGO) Shares Gap Down – Here’s What Happened

Shares of Broadcom Inc. (NASDAQ:AVGO) gapped down before the market opened on Friday . The stock had previously closed at $406.37, but opened at $379.96. Broadcom shares last traded at $365.2470, with a volume of 26,679,390 shares changing hands.

Analyst Ratings Changes

A number of analysts have recently weighed in on AVGO shares. Rosenblatt Securities raised their price target on shares of Broadcom from $400.00 to $440.00 and gave the company a “buy” rating in a report on Tuesday, December 9th. Argus raised their target price on shares of Broadcom from $285.00 to $375.00 and gave the company a “buy” rating in a research note on Monday, September 8th. Susquehanna reaffirmed a “positive” rating and set a $450.00 price target (up from $400.00) on shares of Broadcom in a research report on Thursday, December 4th. JPMorgan Chase & Co. raised their price objective on Broadcom from $400.00 to $475.00 and gave the stock an “overweight” rating in a research report on Friday. Finally, Truist Financial set a $500.00 target price on Broadcom in a research note on Friday. Three analysts have rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, Broadcom has an average rating of “Buy” and a consensus price target of $435.85.

Broadcom Stock Down 11.4%

The stock has a market capitalization of $1.70 trillion, a PE ratio of 75.62, a price-to-earnings-growth ratio of 1.22 and a beta of 1.19. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.50 and a quick ratio of 1.37. The business’s fifty day moving average price is $363.17 and its two-hundred day moving average price is $317.95.

Broadcom (NASDAQ:AVGO) last issued its quarterly earnings results on Thursday, December 11th. The semiconductor manufacturer reported $1.95 EPS for the quarter, topping analysts’ consensus estimates of $1.87 by $0.08. The company had revenue of $18.02 billion during the quarter, compared to analysts’ expectations of $17.46 billion. Broadcom had a return on equity of 38.82% and a net margin of 36.20%.The firm’s revenue was up 28.2% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $1.42 EPS. On average, equities research analysts forecast that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, December 31st. Investors of record on Monday, December 22nd will be given a $0.65 dividend. This is an increase from Broadcom’s previous quarterly dividend of $0.59. This represents a $2.60 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date is Monday, December 22nd. Broadcom’s payout ratio is currently 49.58%.

Insider Activity at Broadcom

In other Broadcom news, Director Henry Samueli sold 368,797 shares of Broadcom stock in a transaction that occurred on Wednesday, September 24th. The shares were sold at an average price of $337.91, for a total transaction of $124,620,194.27. Following the completion of the sale, the director directly owned 37,722,534 shares in the company, valued at approximately $12,746,821,463.94. The trade was a 0.97% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, CEO Hock E. Tan sold 100,000 shares of the company’s stock in a transaction on Tuesday, September 23rd. The shares were sold at an average price of $339.58, for a total transaction of $33,958,000.00. Following the completion of the sale, the chief executive officer directly owned 725,638 shares in the company, valued at $246,412,152.04. This trade represents a 12.11% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 837,433 shares of company stock worth $303,900,352 in the last ninety days. 2.00% of the stock is owned by company insiders.

Hedge Funds Weigh In On Broadcom

Several institutional investors and hedge funds have recently modified their holdings of the stock. Arthur M. Cohen & Associates LLC boosted its position in Broadcom by 0.6% in the 3rd quarter. Arthur M. Cohen & Associates LLC now owns 4,781 shares of the semiconductor manufacturer’s stock worth $1,577,000 after purchasing an additional 30 shares in the last quarter. Jackson Hole Capital Partners LLC lifted its stake in shares of Broadcom by 1.4% in the 3rd quarter. Jackson Hole Capital Partners LLC now owns 2,170 shares of the semiconductor manufacturer’s stock valued at $716,000 after purchasing an additional 30 shares during the period. Private Wealth Partners LLC grew its position in Broadcom by 0.7% during the third quarter. Private Wealth Partners LLC now owns 4,273 shares of the semiconductor manufacturer’s stock valued at $1,410,000 after buying an additional 30 shares during the period. Planning Alternatives Ltd. ADV grew its position in Broadcom by 1.4% during the third quarter. Planning Alternatives Ltd. ADV now owns 2,168 shares of the semiconductor manufacturer’s stock valued at $715,000 after buying an additional 30 shares during the period. Finally, Bell Investment Advisors Inc increased its holdings in Broadcom by 1.9% in the third quarter. Bell Investment Advisors Inc now owns 1,638 shares of the semiconductor manufacturer’s stock valued at $540,000 after buying an additional 30 shares in the last quarter. Institutional investors and hedge funds own 76.43% of the company’s stock.

Broadcom Company Profile

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.