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.
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.
COPYRIGHT VIOLATION WARNING: “Broadcom Limited (AVGO) Sees Significant Increase in Short Interest” was originally published by The Ledger Gazette and is the property of of The Ledger Gazette. If you are viewing this piece on another publication, it was stolen and republished in violation of international copyright and trademark law. The original version of this piece can be viewed at https://ledgergazette.com/2018/04/15/broadcom-limited-avgo-sees-significant-increase-in-short-interest.html.
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.
Receive News & Ratings for Broadcom Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Broadcom and related companies with MarketBeat.com's FREE daily email newsletter.