Broadcom (NASDAQ:AVGO) Trading Up 20.3% on Better-Than-Expected Earnings

Broadcom Inc. (NASDAQ:AVGO) was up 20.3% on Friday following a stronger than expected earnings report. The company traded as high as $221.65 and last traded at $217.37. Approximately 49,550,037 shares changed hands during mid-day trading, an increase of 70% from the average daily volume of 29,142,752 shares. The stock had previously closed at $180.66.

The semiconductor manufacturer reported $1.42 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.39 by $0.03. Broadcom had a return on equity of 30.12% and a net margin of 10.88%. The business had revenue of $14.05 billion during the quarter, compared to analyst estimates of $14.07 billion. During the same quarter in the previous year, the company posted $0.98 earnings per share. Broadcom’s revenue for the quarter was up 51.2% on a year-over-year basis.

Broadcom Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 31st. Stockholders of record on Monday, December 23rd will be given a dividend of $0.59 per share. This represents a $2.36 annualized dividend and a dividend yield of 1.09%. This is an increase from Broadcom’s previous quarterly dividend of $0.53. Broadcom’s dividend payout ratio (DPR) is presently 184.19%.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on AVGO shares. Evercore ISI lifted their target price on Broadcom from $201.00 to $250.00 and gave the company an “outperform” rating in a research note on Friday. The Goldman Sachs Group upped their price target on shares of Broadcom from $185.00 to $190.00 and gave the company a “buy” rating in a research note on Friday, September 6th. William Blair assumed coverage on shares of Broadcom in a report on Wednesday, September 18th. They issued an “outperform” rating on the stock. Piper Sandler lifted their price target on Broadcom from $200.00 to $250.00 and gave the stock an “overweight” rating in a research report on Friday. Finally, JPMorgan Chase & Co. raised their price objective on Broadcom from $200.00 to $210.00 and gave the company an “overweight” rating in a research note on Friday, September 6th. Three investment analysts have rated the stock with a hold rating and twenty-four have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus price target of $215.96.

Insider Transactions at Broadcom

In other news, insider Charlie B. Kawwas sold 15,950 shares of Broadcom stock in a transaction on Friday, October 11th. The stock was sold at an average price of $181.44, for a total value of $2,893,968.00. Following the transaction, the insider now directly owns 737,330 shares in the company, valued at approximately $133,781,155.20. This trade represents a 2.12 % decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Mark David Brazeal sold 20,280 shares of the company’s stock in a transaction on Monday, October 7th. The stock was sold at an average price of $177.10, for a total value of $3,591,588.00. Following the sale, the insider now owns 399,460 shares of the company’s stock, valued at $70,744,366. This trade represents a 4.83 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 311,080 shares of company stock valued at $53,540,590. 2.00% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Broadcom

A number of large investors have recently made changes to their positions in AVGO. Kiely Wealth Advisory Group Inc. purchased a new stake in Broadcom during the 2nd quarter worth approximately $128,000. Mark Sheptoff Financial Planning LLC purchased a new stake in Broadcom in the second quarter valued at $136,000. American Capital Advisory LLC acquired a new stake in Broadcom during the 2nd quarter worth about $169,000. Semus Wealth Partners LLC acquired a new stake in Broadcom during the 2nd quarter worth about $202,000. Finally, Palisades Hudson Asset Management L.P. purchased a new position in shares of Broadcom during the 2nd quarter valued at about $204,000. 76.43% of the stock is owned by institutional investors and hedge funds.

Broadcom Trading Up 19.8 %

The company has a current ratio of 1.04, a quick ratio of 0.94 and a debt-to-equity ratio of 1.02. The firm has a market cap of $1.01 trillion, a price-to-earnings ratio of 188.85, a PEG ratio of 2.15 and a beta of 1.13. The company has a fifty day moving average price of $173.65 and a 200-day moving average price of $163.86.

About Broadcom

Broadcom Inc designs, develops, and supplies various 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 in two segments, Semiconductor Solutions and Infrastructure Software.