Broadcom (NASDAQ:AVGO) Sets New 12-Month High After Strong Earnings

Broadcom Inc (NASDAQ:AVGO) shares reached a new 52-week high during mid-day trading on Thursday following a stronger than expected earnings report. The stock traded as high as $328.00 and last traded at $327.40, with a volume of 162769 shares changing hands. The stock had previously closed at $319.72.

The semiconductor manufacturer reported $5.39 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $5.35 by $0.04. The firm had revenue of $5.78 billion during the quarter, compared to analyst estimates of $5.74 billion. Broadcom had a net margin of 13.44% and a return on equity of 34.10%. The company’s revenue for the quarter was up 6.1% on a year-over-year basis. During the same quarter last year, the business posted $5.85 EPS.

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 31st. Shareholders of record on Monday, December 23rd will be paid a $3.25 dividend. This is a positive change from Broadcom’s previous quarterly dividend of $2.65. This represents a $13.00 annualized dividend and a yield of 4.12%. Broadcom’s dividend payout ratio (DPR) is 56.29%.

AVGO has been the subject of several analyst reports. Loop Capital lowered shares of Broadcom from a “buy” rating to a “hold” rating in a research note on Friday, September 13th. Piper Jaffray Companies reiterated a “buy” rating and issued a $345.00 price objective (up previously from $330.00) on shares of Broadcom in a research note on Tuesday. Cowen increased their price objective on shares of Broadcom from $285.00 to $310.00 and gave the company a “market perform” rating in a research note on Friday. Raymond James reiterated a “hold” rating on shares of Broadcom in a research note on Thursday. Finally, Morgan Stanley upgraded shares of Broadcom from an “equal weight” rating to an “overweight” rating in a research note on Wednesday, November 27th. Nine analysts have rated the stock with a hold rating, twenty-five have issued a buy rating and one has issued a strong buy rating to the stock. Broadcom currently has an average rating of “Buy” and an average target price of $328.00.

In related news, insider Mark David Brazeal sold 2,000 shares of the firm’s stock in a transaction that occurred on Friday, October 11th. The shares were sold at an average price of $289.43, for a total value of $578,860.00. Also, CEO Hock E. Tan sold 20,000 shares of the firm’s stock in a transaction that occurred on Monday, September 16th. The stock was sold at an average price of $288.71, for a total transaction of $5,774,200.00. Over the last ninety days, insiders sold 62,000 shares of company stock valued at $18,432,860. 3.30% of the stock is owned by insiders.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in AVGO. Advisors Preferred LLC bought a new position in Broadcom in the 2nd quarter worth approximately $27,000. Garrett Wealth Advisory Group LLC bought a new position in Broadcom in the 3rd quarter worth approximately $28,000. Marquette Asset Management LLC bought a new position in Broadcom in the 3rd quarter worth approximately $28,000. Ellis Investment Partners LLC boosted its holdings in Broadcom by 55.7% in the 3rd quarter. Ellis Investment Partners LLC now owns 123 shares of the semiconductor manufacturer’s stock valued at $33,000 after purchasing an additional 44 shares during the period. Finally, Candriam Luxembourg S.C.A. boosted its holdings in Broadcom by 8.3% in the 3rd quarter. Candriam Luxembourg S.C.A. now owns 124,792 shares of the semiconductor manufacturer’s stock valued at $34,000 after purchasing an additional 9,602 shares during the period. 83.51% of the stock is owned by institutional investors.

The company’s fifty day simple moving average is $309.26 and its 200 day simple moving average is $287.57. The company has a current ratio of 1.32, a quick ratio of 1.18 and a debt-to-equity ratio of 1.58. The stock has a market capitalization of $126.82 billion, a P/E ratio of 16.75, a P/E/G ratio of 1.51 and a beta of 0.90.

About Broadcom (NASDAQ:AVGO)

Broadcom Inc designs, develops, and supplies a range of 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 through four segments: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial & Other.

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