Broadcom (NASDAQ:AVGO) Stock Price Down 4.1% Following Insider Selling

Shares of Broadcom Inc. (NASDAQ:AVGO) were down 4.1% on Friday after an insider sold shares in the company. The stock traded as low as $177.40 and last traded at $178.09. Approximately 9,307,960 shares changed hands during mid-day trading, a decline of 70% from the average daily volume of 30,844,359 shares. The stock had previously closed at $185.69.

Specifically, insider Mark David Brazeal sold 18,900 shares of the stock in a transaction dated Wednesday, October 9th. The stock was sold at an average price of $182.88, for a total value of $3,456,432.00. Following the transaction, the insider now owns 380,560 shares of the company’s stock, valued at approximately $69,596,812.80. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Mark David Brazeal sold 20,280 shares of the business’s stock in a transaction dated Monday, October 7th. The shares were sold at an average price of $177.10, for a total value of $3,591,588.00. Following the sale, the insider now owns 399,460 shares of the company’s stock, valued at approximately $70,744,366. This represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In other news, CEO Hock E. Tan sold 20,000 shares of the stock in a transaction that occurred on Thursday, October 3rd. The shares were sold at an average price of $172.32, for a total value of $3,446,400.00. Following the transaction, the chief executive officer now owns 1,151,910 shares in the company, valued at $198,497,131.20. This represents a 0.00 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link.

Wall Street Analyst Weigh In

A number of analysts have commented on AVGO shares. UBS Group reduced their target price on shares of Broadcom from $173.50 to $170.00 and set a “buy” rating for the company in a report on Monday, September 9th. Truist Financial raised their target price on Broadcom from $204.00 to $205.00 and gave the stock a “buy” rating in a report on Tuesday, October 8th. Morgan Stanley boosted their price target on Broadcom from $176.00 to $180.00 and gave the company an “overweight” rating in a report on Friday, September 6th. Oppenheimer reduced their price target on Broadcom from $2,000.00 to $200.00 and set an “outperform” rating for the company in a research report on Tuesday, July 16th. Finally, JPMorgan Chase & Co. lifted their price objective on Broadcom from $200.00 to $210.00 and gave the company an “overweight” rating in a research report on Friday, September 6th. Two investment analysts have rated the stock with a hold rating, twenty-four have issued a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat.com, Broadcom currently has a consensus rating of “Moderate Buy” and an average target price of $190.29.

Broadcom Stock Performance

The company has a market capitalization of $847.62 billion, a P/E ratio of 157.67, a price-to-earnings-growth ratio of 2.99 and a beta of 1.17. The business has a 50 day moving average of $162.91 and a 200 day moving average of $151.64. The company has a quick ratio of 0.94, a current ratio of 1.04 and a debt-to-equity ratio of 1.02.

Broadcom (NASDAQ:AVGO) last posted its earnings results on Thursday, September 5th. The semiconductor manufacturer reported $1.24 EPS for the quarter, beating analysts’ consensus estimates of $1.20 by $0.04. Broadcom had a return on equity of 30.12% and a net margin of 10.88%. The firm had revenue of $13.07 billion during the quarter, compared to the consensus estimate of $12.98 billion. During the same period in the prior year, the company earned $0.95 EPS. The company’s quarterly revenue was up 47.3% compared to the same quarter last year. On average, sell-side analysts predict that Broadcom Inc. will post 3.78 earnings per share for the current year.

Broadcom Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, September 30th. Shareholders of record on Thursday, September 19th were paid a $0.53 dividend. This is a boost from Broadcom’s previous quarterly dividend of $0.53. This represents a $2.12 dividend on an annualized basis and a dividend yield of 1.17%. The ex-dividend date was Thursday, September 19th. Broadcom’s dividend payout ratio (DPR) is presently 184.19%.

Institutional Trading of Broadcom

Several hedge funds have recently made changes to their positions in AVGO. American Trust increased its position in shares of Broadcom by 2.3% during the 4th quarter. American Trust now owns 451 shares of the semiconductor manufacturer’s stock valued at $503,000 after purchasing an additional 10 shares during the last quarter. WNY Asset Management LLC increased its position in Broadcom by 15.9% during the fourth quarter. WNY Asset Management LLC now owns 299 shares of the semiconductor manufacturer’s stock valued at $334,000 after acquiring an additional 41 shares during the last quarter. Beacon Financial Group raised its stake in shares of Broadcom by 46.3% in the fourth quarter. Beacon Financial Group now owns 683 shares of the semiconductor manufacturer’s stock valued at $762,000 after acquiring an additional 216 shares during the period. Teachers Retirement System of The State of Kentucky lifted its holdings in shares of Broadcom by 27.9% in the 4th quarter. Teachers Retirement System of The State of Kentucky now owns 143,264 shares of the semiconductor manufacturer’s stock worth $159,918,000 after acquiring an additional 31,244 shares during the last quarter. Finally, Syon Capital LLC boosted its stake in shares of Broadcom by 21.9% during the 4th quarter. Syon Capital LLC now owns 4,722 shares of the semiconductor manufacturer’s stock worth $5,271,000 after purchasing an additional 847 shares during the period. 76.43% of the stock is currently owned by hedge funds and other institutional investors.

About Broadcom

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.