Analysts Set Broadcom Inc. (NASDAQ:AVGO) Target Price at $272.71

Broadcom Inc. (NASDAQ:AVGO) has earned a consensus recommendation of “Moderate Buy” from the twenty-eight research firms that are currently covering the firm, MarketBeat.com reports. Two analysts have rated the stock with a hold rating, twenty-five have given a buy rating and one has given a strong buy rating to the company. The average 12-month price target among analysts that have covered the stock in the last year is $276.09.

AVGO has been the topic of several recent analyst reports. Wells Fargo & Company boosted their target price on shares of Broadcom from $230.00 to $255.00 and gave the company an “equal weight” rating in a report on Friday, June 6th. Susquehanna increased their target price on shares of Broadcom from $280.00 to $300.00 and gave the company a “positive” rating in a research report on Friday, June 6th. Evercore ISI reaffirmed an “outperform” rating and issued a $304.00 price objective (up from $267.00) on shares of Broadcom in a report on Friday, June 6th. Redburn Atlantic started coverage on shares of Broadcom in a report on Wednesday, May 28th. They issued a “buy” rating and a $301.00 price target for the company. Finally, KeyCorp raised their price objective on Broadcom from $260.00 to $275.00 and gave the company an “overweight” rating in a research note on Friday, March 7th.

Broadcom Price Performance

Shares of NASDAQ AVGO opened at $248.70 on Wednesday. The stock has a market capitalization of $1.17 trillion, a price-to-earnings ratio of 202.86, a PEG ratio of 2.29 and a beta of 1.11. The business has a 50-day moving average of $213.01 and a 200-day moving average of $209.15. The company has a debt-to-equity ratio of 0.98, a current ratio of 1.17 and a quick ratio of 1.07. Broadcom has a fifty-two week low of $128.50 and a fifty-two week high of $265.43.

Broadcom (NASDAQ:AVGO) last issued its quarterly earnings data on Thursday, June 5th. The semiconductor manufacturer reported $1.58 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.57 by $0.01. Broadcom had a net margin of 11.43% and a return on equity of 28.00%. The firm had revenue of $15 billion during the quarter, compared to the consensus estimate of $14.98 billion. During the same period last year, the business posted $10.96 earnings per share. The business’s revenue for the quarter was up 20.2% compared to the same quarter last year. As a group, sell-side analysts predict that Broadcom will post 5.38 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, June 30th. Investors of record on Friday, June 20th will be paid a $0.59 dividend. The ex-dividend date is Friday, June 20th. This represents a $2.36 dividend on an annualized basis and a dividend yield of 0.95%. Broadcom’s dividend payout ratio (DPR) is presently 88.39%.

Broadcom declared that its Board of Directors has initiated a stock repurchase program on Monday, April 7th that permits the company to buyback $10.00 billion in shares. This buyback authorization permits the semiconductor manufacturer to purchase up to 1.4% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s board believes its stock is undervalued.

Insider Buying and Selling

In other news, insider Mark David Brazeal sold 30,000 shares of the business’s stock in a transaction on Monday, March 24th. The stock was sold at an average price of $194.65, for a total value of $5,839,500.00. Following the completion of the transaction, the insider now directly owns 490,956 shares of the company’s stock, valued at $95,564,585.40. The trade was a 5.76% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Henry Samueli sold 663,976 shares of the business’s stock in a transaction on Wednesday, March 26th. The stock was sold at an average price of $181.60, for a total value of $120,578,041.60. Following the completion of the transaction, the director now directly owns 38,798,721 shares of the company’s stock, valued at approximately $7,045,847,733.60. This trade represents a 1.68% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 730,576 shares of company stock valued at $133,778,494. 2.00% of the stock is owned by insiders.

Hedge Funds Weigh In On Broadcom

A number of institutional investors have recently made changes to their positions in the stock. Barnes Dennig Private Wealth Management LLC acquired a new position in Broadcom in the first quarter valued at $25,000. Cheviot Value Management LLC acquired a new position in Broadcom in the first quarter valued at $25,000. Canton Hathaway LLC acquired a new position in Broadcom in the fourth quarter valued at $26,000. Rialto Wealth Management LLC acquired a new position in Broadcom in the fourth quarter valued at $26,000. Finally, Inlight Wealth Management LLC acquired a new position in Broadcom in the first quarter valued at $26,000. 76.43% of the stock is owned by institutional investors and hedge funds.

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.