Zacks Investment Research upgraded shares of Broadcom (NASDAQ:AVGO) from a hold rating to a buy rating in a report issued on Tuesday. Zacks Investment Research currently has $264.00 price objective on the semiconductor manufacturer’s stock.
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 has recently inked financing agreements with various institutions to fund Qualcomm’s proposed takeover. If completed, then this deal will make it the third-largest chipmaker, behind Intel and Samsung. The company 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. However, customer concentration, intensifying competition, integration risks due to frequent acquisitions and leverage balance sheet are key headwinds.”
Several other research analysts have also weighed in on AVGO. KeyCorp reiterated a buy rating and set a $290.00 target price on shares of Broadcom in a report on Tuesday, October 17th. Barclays lifted their price target on Broadcom from $290.00 to $300.00 and gave the company an overweight rating in a research note on Wednesday, October 18th. Jefferies Group set a $286.00 target price on Broadcom and gave the company a buy rating in a research report on Wednesday, October 18th. Sanford C. Bernstein set a $285.00 target price on Broadcom and gave the company a buy rating in a research report on Monday, October 30th. Finally, B. Riley lifted their target price on Broadcom from $305.00 to $315.00 and gave the company a buy rating in a research report on Thursday, November 2nd. One research analyst has rated the stock with a sell rating, two have given a hold rating, thirty-four have issued a buy rating and one has given a strong buy rating to the company. Broadcom presently has an average rating of Buy and a consensus target price of $301.58.
Broadcom (AVGO) traded up $4.17 during trading hours on Tuesday, hitting $251.83. The stock had a trading volume of 2,553,700 shares, compared to its average volume of 3,844,696. Broadcom has a 1-year low of $202.61 and a 1-year high of $285.68. The company has a debt-to-equity ratio of 0.75, a current ratio of 6.26 and a quick ratio of 5.68. The company has a market cap of $101,520.00, a price-to-earnings ratio of 63.32, a P/E/G ratio of 1.03 and a beta of 0.88.
Broadcom (NASDAQ:AVGO) last posted its earnings results on Wednesday, December 6th. The semiconductor manufacturer reported $4.59 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate 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 return on equity of 28.64% and a net margin of 10.18%. The company’s revenue for the quarter was up 17.1% on a year-over-year basis. During the same period in the previous year, the company posted $3.47 earnings per share. sell-side analysts predict that Broadcom will post 17.41 earnings per share for the current year.
In related news, SVP Charlie B. Kawwas sold 1,051 shares of Broadcom stock in a transaction on Monday, December 18th. The shares were sold at an average price of $264.38, for a total value of $277,863.38. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, SVP Bryan Ingram sold 794 shares of Broadcom stock in a transaction on Wednesday, December 6th. The stock was sold at an average price of $258.60, for a total transaction of $205,328.40. The disclosure for this sale can be found here. Insiders sold a total of 64,079 shares of company stock valued at $16,765,043 over the last quarter. 3.60% of the stock is owned by company insiders.
Several hedge funds have recently added to or reduced their stakes in AVGO. AllSquare Wealth Management LLC bought a new stake in Broadcom during the third quarter worth about $113,000. SeaCrest Wealth Management LLC bought a new position in shares of Broadcom in the fourth quarter worth approximately $124,000. Carroll Financial Associates Inc. lifted its stake in shares of Broadcom by 59.0% in the third quarter. Carroll Financial Associates Inc. now owns 593 shares of the semiconductor manufacturer’s stock worth $144,000 after buying an additional 220 shares in the last quarter. FNY Partners Fund LP bought a new position in shares of Broadcom in the fourth quarter worth approximately $154,000. Finally, Cable Hill Partners LLC lifted its stake in shares of Broadcom by 824.6% in the third quarter. Cable Hill Partners LLC now owns 638 shares of the semiconductor manufacturer’s stock worth $155,000 after buying an additional 569 shares in the last quarter. Hedge funds and other institutional investors own 88.46% of the company’s stock.
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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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