Broadcom Limited (AVGO) Sees Significant Increase in Short Interest

Broadcom Limited (NASDAQ:AVGO) was the target of a significant increase in short interest in March. As of March 29th, there was short interest totalling 5,526,742 shares, an increase of 40.9% from the March 15th total of 3,922,874 shares. Based on an average daily trading volume, of 6,053,577 shares, the days-to-cover ratio is currently 0.9 days.

Several brokerages have weighed in on AVGO. Zacks Investment Research upgraded Broadcom from a “hold” rating to a “buy” rating and set a $284.00 price objective for the company in a research report on Monday, March 12th. Deutsche Bank began coverage on Broadcom in a research report on Thursday, March 15th. They issued a “buy” rating and a $325.00 price objective for the company. Canaccord Genuity reiterated a “buy” rating and issued a $340.00 price objective (up previously from $325.00) on shares of Broadcom in a research report on Friday, March 16th. Jefferies Group reiterated a “buy” rating and issued a $332.00 price objective on shares of Broadcom in a research report on Friday, March 16th. Finally, SunTrust Banks lowered their price objective on Broadcom to $335.00 and set a “buy” rating for the company in a research report on Tuesday, March 13th. They noted that the move was a valuation call. Five analysts have rated the stock with a hold rating, thirty-one have assigned a buy rating and one has given a strong buy rating to the company. The stock currently has a consensus rating of “Buy” and a consensus target price of $313.89.

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In other Broadcom news, SVP Charlie B. Kawwas sold 997 shares of the company’s stock in a transaction that occurred on Friday, March 2nd. The stock was sold at an average price of $243.88, for a total value of $243,148.36. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Hock E. Tan sold 20,000 shares of the company’s stock in a transaction that occurred on Tuesday, January 16th. The stock was sold at an average price of $265.21, for a total value of $5,304,200.00. The disclosure for this sale can be found here. In the last ninety days, insiders sold 98,675 shares of company stock valued at $25,376,429. 3.30% of the stock is owned by insiders.

A number of hedge funds have recently modified their holdings of the stock. SeaCrest Wealth Management LLC purchased a new stake in shares of Broadcom in the fourth quarter worth $124,000. We Are One Seven LLC purchased a new stake in shares of Broadcom in the fourth quarter worth $142,000. FNY Partners Fund LP purchased a new stake in shares of Broadcom in the fourth quarter worth $154,000. Independence Bank of Kentucky purchased a new stake in shares of Broadcom in the fourth quarter worth $188,000. Finally, Premia Global Advisors LLC purchased a new stake in shares of Broadcom in the fourth quarter worth $198,000. 89.47% of the stock is currently owned by institutional investors.

Shares of AVGO stock opened at $246.94 on Friday. The firm has a market capitalization of $98,346.35, a P/E ratio of 17.27, a PEG ratio of 1.07 and a beta of 0.92. Broadcom has a twelve month low of $212.06 and a twelve month high of $285.68. The company has a debt-to-equity ratio of 0.60, a quick ratio of 5.04 and a current ratio of 5.70.

Broadcom (NASDAQ:AVGO) last issued its quarterly earnings results on Thursday, March 15th. The semiconductor manufacturer reported $5.12 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $4.41 by $0.71. The company had revenue of $5.33 billion for the quarter, compared to analysts’ expectations of $5.32 billion. Broadcom had a return on equity of 29.50% and a net margin of 41.37%. The firm’s revenue for the quarter was up 28.5% on a year-over-year basis. During the same period in the prior year, the firm earned $3.63 earnings per share. equities analysts anticipate that Broadcom will post 17.43 earnings per share for the current fiscal year.

The company also recently declared a quarterly dividend, which was paid on Thursday, March 29th. Investors of record on Thursday, March 22nd were paid a $1.75 dividend. This represents a $7.00 annualized dividend and a yield of 2.83%. This is a boost from Broadcom’s previous quarterly dividend of $0.40. The ex-dividend date of this dividend was Wednesday, March 21st. Broadcom’s dividend payout ratio is presently 48.95%.

Broadcom announced that its Board of Directors has authorized a stock buyback program on Thursday, April 12th that permits the company to repurchase $12.00 billion in outstanding shares. This repurchase authorization permits the semiconductor manufacturer to purchase up to 12.2% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company’s leadership believes its shares are undervalued.

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Broadcom Company Profile

Broadcom Limited 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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