Broadcom (NASDAQ:AVGO) Sets New 12-Month Low on Analyst Downgrade

Broadcom (NASDAQ:AVGO) Sets New 12-Month Low on Analyst Downgrade

Broadcom Inc (NASDAQ:AVGO)’s stock price reached a new 52-week low on Monday after TheStreet downgraded the stock from a b rating to a c+ rating. The company traded as low as $203.07 and last traded at $209.57, with a volume of 242692 shares changing hands. The stock had previously closed at $234.22.

Other equities analysts have also issued research reports about the stock. Cowen boosted their price objective on shares of Broadcom from $285.00 to $310.00 and gave the company a “market perform” rating in a research report on Friday, December 13th. Morgan Stanley reissued a “buy” rating and issued a $340.00 price objective on shares of Broadcom in a research report on Friday. Susquehanna Bancshares reissued a “buy” rating and issued a $345.00 price objective on shares of Broadcom in a research report on Wednesday, December 11th. SunTrust Banks cut their price objective on shares of Broadcom from $366.00 to $300.00 and set a “buy” rating for the company in a research report on Friday. They noted that the move was a valuation call. Finally, Bank of America reissued a “buy” rating and issued a $320.00 price objective (down previously from $360.00) on shares of Broadcom in a research report on Monday, March 9th. One equities research analyst has rated the stock with a sell rating, eight have assigned a hold rating and twenty-eight have issued a buy rating to the company. The company currently has a consensus rating of “Buy” and an average target price of $318.91.

In other news, CEO Hock E. Tan sold 75,000 shares of the stock in a transaction on Wednesday, January 8th. The shares were sold at an average price of $311.02, for a total value of $23,326,500.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Insiders sold 347,292 shares of company stock valued at $106,455,013 in the last three months. Company insiders own 3.30% of the company’s stock.

Several institutional investors have recently added to or reduced their stakes in AVGO. Norges Bank acquired a new stake in shares of Broadcom in the fourth quarter worth $1,159,267,000. Capital International Investors boosted its stake in shares of Broadcom by 7.6% in the fourth quarter. Capital International Investors now owns 29,539,532 shares of the semiconductor manufacturer’s stock valued at $9,335,080,000 after purchasing an additional 2,089,628 shares during the period. Investec Asset Management LTD boosted its stake in shares of Broadcom by 107.3% in the fourth quarter. Investec Asset Management LTD now owns 1,053,905 shares of the semiconductor manufacturer’s stock valued at $333,055,000 after purchasing an additional 545,500 shares during the period. Amundi Pioneer Asset Management Inc. boosted its stake in shares of Broadcom by 35.0% in the fourth quarter. Amundi Pioneer Asset Management Inc. now owns 1,907,456 shares of the semiconductor manufacturer’s stock valued at $602,751,000 after purchasing an additional 494,761 shares during the period. Finally, GQG Partners LLC purchased a new position in shares of Broadcom in the fourth quarter valued at $135,646,000. 83.14% of the stock is owned by institutional investors.

The firm has a market capitalization of $87.39 billion, a PE ratio of 30.95, a P/E/G ratio of 1.06 and a beta of 0.87. The firm’s 50 day moving average price is $293.19 and its two-hundred day moving average price is $298.86. The company has a quick ratio of 1.31, a current ratio of 1.44 and a debt-to-equity ratio of 1.58.

Broadcom (NASDAQ:AVGO) last announced its earnings results on Thursday, March 12th. The semiconductor manufacturer reported $5.25 earnings per share for the quarter, missing the consensus estimate of $5.33 by ($0.08). The firm had revenue of $5.86 billion during the quarter, compared to analysts’ expectations of $5.99 billion. Broadcom had a net margin of 11.64% and a return on equity of 51.99%. Broadcom’s revenue for the quarter was up 1.2% compared to the same quarter last year. During the same quarter last year, the company posted $5.55 earnings per share. On average, sell-side analysts anticipate that Broadcom Inc will post 19.04 earnings per share for the current fiscal year.

The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Monday, March 23rd will be paid a $3.25 dividend. The ex-dividend date is Friday, March 20th. This represents a $13.00 annualized dividend and a dividend yield of 6.93%. Broadcom’s dividend payout ratio (DPR) is presently 74.67%.

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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