“We believe multiple tailwinds into 2019-20 with the CA acquisition mostly behind, AI ASICs, regaining RF share, 5G ramps with wireless/Networking, strong FCF and dividend growth positions AVGO well. AVGO provides an attractive opportunity given a dominant market share, ~$6B in buybacks remaining, $8B+ of ~3%+ dividend yield. Reiterating our Buy and raising PT to $295. The shares trade at a conservative ~ 11x F19E EPS.”,” the firm’s analyst wrote.
Other equities analysts have also recently issued research reports about the company. MKM Partners cut their price objective on Broadcom to $255.00 in a research report on Friday, September 7th. Sanford C. Bernstein set a $320.00 price objective on Broadcom and gave the stock a buy rating in a research report on Friday, June 8th. B. Riley cut their price objective on Broadcom from $310.00 to $308.00 and set a buy rating for the company in a research report on Friday, June 8th. Jefferies Financial Group boosted their price objective on Broadcom from $319.00 to $326.00 and gave the stock a buy rating in a research report on Friday, June 8th. Finally, Bank of America boosted their price objective on Broadcom from $285.00 to $300.00 and gave the stock a buy rating in a research report on Friday, June 8th. One analyst has rated the stock with a sell rating, seven have given a hold rating and thirty-one have assigned a buy rating to the company’s stock. The company currently has a consensus rating of Buy and a consensus price target of $290.77.
Broadcom (NASDAQ:AVGO) last posted its quarterly earnings data on Thursday, September 6th. The semiconductor manufacturer reported $4.98 earnings per share for the quarter, topping the consensus estimate of $4.82 by $0.16. Broadcom had a return on equity of 28.54% and a net margin of 58.18%. The business had revenue of $5.06 billion during the quarter, compared to analysts’ expectations of $5.06 billion. During the same quarter in the previous year, the firm earned $4.10 EPS. The firm’s revenue was up 13.4% compared to the same quarter last year. On average, equities research analysts forecast that Broadcom will post 18.09 earnings per share for the current year.
The company also recently declared a quarterly dividend, which was paid on Friday, September 28th. Shareholders of record on Wednesday, September 19th were issued a $1.75 dividend. The ex-dividend date was Tuesday, September 18th. This represents a $7.00 annualized dividend and a yield of 2.87%. Broadcom’s dividend payout ratio (DPR) is 48.95%.
In other Broadcom news, insider Kirsten M. Spears sold 1,194 shares of the company’s stock in a transaction that occurred on Friday, September 28th. The stock was sold at an average price of $246.52, for a total value of $294,344.88. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Hock E. Tan sold 20,000 shares of the company’s stock in a transaction that occurred on Monday, July 16th. The shares were sold at an average price of $202.08, for a total value of $4,041,600.00. The disclosure for this sale can be found here. In the last ninety days, insiders sold 81,194 shares of company stock valued at $18,118,745. Insiders own 3.30% of the company’s stock.
Institutional investors and hedge funds have recently modified their holdings of the company. Marcus Capital LLC acquired a new position in shares of Broadcom in the 2nd quarter worth approximately $364,000. BP PLC acquired a new position in shares of Broadcom in the 2nd quarter worth approximately $12,135,000. Wesbanco Bank Inc. acquired a new position in shares of Broadcom in the 2nd quarter worth approximately $19,879,000. Sigma Investment Counselors Inc. acquired a new position in shares of Broadcom in the 2nd quarter worth approximately $286,000. Finally, KBC Group NV acquired a new position in shares of Broadcom in the 2nd quarter worth approximately $10,500,000. 88.01% of the stock is owned by institutional investors and hedge funds.
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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