Investors Buy Shares of Broadcom (AVGO) on Weakness

Traders bought shares of Broadcom Inc (NASDAQ:AVGO) on weakness during trading on Tuesday. $125.89 million flowed into the stock on the tick-up and $77.46 million flowed out of the stock on the tick-down, for a money net flow of $48.43 million into the stock. Of all equities tracked, Broadcom had the 12th highest net in-flow for the day. Broadcom traded down ($0.56) for the day and closed at $238.49

AVGO has been the subject of several research reports. Canaccord Genuity restated a “buy” rating and set a $340.00 price objective (up from $325.00) on shares of Broadcom in a research report on Friday, March 16th. Jefferies Group restated a “buy” rating and set a $332.00 price objective on shares of Broadcom in a research report on Friday, March 16th. Drexel Hamilton restated a “buy” rating and set a $313.00 price objective (up from $302.00) on shares of Broadcom in a research report on Friday, March 16th. JPMorgan Chase & Co. restated an “overweight” rating and set a $340.00 price objective on shares of Broadcom in a research report on Friday, March 16th. Finally, Wells Fargo & Co initiated coverage on shares of Broadcom in a research report on Friday, March 16th. They set a “market perform” rating for the company. One equities research analyst has rated the stock with a sell rating, four have given a hold rating, thirty-three have assigned a buy rating and one has assigned a strong buy rating to the stock. The company currently has a consensus rating of “Buy” and a consensus price target of $308.71.

The company has a market cap of $97.96 billion, a PE ratio of 16.96, a P/E/G ratio of 1.14 and a beta of 0.95. The company has a current ratio of 5.70, a quick ratio of 5.04 and a debt-to-equity ratio of 0.60.

Broadcom (NASDAQ:AVGO) last announced its quarterly earnings data on Thursday, March 15th. The semiconductor manufacturer reported $5.12 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.41 by $0.71. The business had revenue of $5.33 billion for the quarter, compared to analysts’ expectations of $5.32 billion. Broadcom had a net margin of 41.37% and a return on equity of 29.50%. The firm’s quarterly revenue was up 28.5% compared to the same quarter last year. During the same period last year, the firm posted $3.63 earnings per share. equities analysts anticipate that Broadcom Inc will post 16.82 EPS for the current fiscal year.

Broadcom declared that its Board of Directors has initiated a share repurchase plan on Thursday, April 12th that permits the company to repurchase $12.00 billion in outstanding shares. This repurchase authorization permits the semiconductor manufacturer to repurchase up to 12.2% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s board of directors believes its stock is undervalued.

In other Broadcom news, insider Hock E. Tan sold 20,000 shares of the business’s stock in a transaction on Monday, April 16th. The shares were sold at an average price of $248.03, for a total transaction of $4,960,600.00. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CFO Thomas H. Krause sold 3,171 shares of the business’s stock in a transaction on Wednesday, March 14th. The stock was sold at an average price of $259.81, for a total transaction of $823,857.51. The disclosure for this sale can be found here. Insiders sold 78,675 shares of company stock worth $20,078,429 over the last three months. 3.30% of the stock is currently owned by insiders.

Several hedge funds and other institutional investors have recently bought and sold shares of the business. BlackRock Inc. grew its stake in shares of Broadcom by 2.1% during the fourth quarter. BlackRock Inc. now owns 24,924,233 shares of the semiconductor manufacturer’s stock worth $6,403,033,000 after buying an additional 508,470 shares during the last quarter. Jennison Associates LLC grew its stake in shares of Broadcom by 8.1% during the fourth quarter. Jennison Associates LLC now owns 5,583,858 shares of the semiconductor manufacturer’s stock worth $1,434,493,000 after buying an additional 418,420 shares during the last quarter. Geode Capital Management LLC grew its stake in shares of Broadcom by 3.4% during the fourth quarter. Geode Capital Management LLC now owns 4,141,614 shares of the semiconductor manufacturer’s stock worth $1,061,670,000 after buying an additional 135,437 shares during the last quarter. Coatue Management LLC grew its stake in shares of Broadcom by 28.2% in the fourth quarter. Coatue Management LLC now owns 3,735,957 shares of the semiconductor manufacturer’s stock worth $959,768,000 after purchasing an additional 821,739 shares during the last quarter. Finally, Viking Global Investors LP grew its stake in shares of Broadcom by 14.4% in the fourth quarter. Viking Global Investors LP now owns 2,466,836 shares of the semiconductor manufacturer’s stock worth $633,730,000 after purchasing an additional 310,906 shares during the last quarter. 86.67% of the stock is currently owned by hedge funds and other institutional investors.

About Broadcom

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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