Broadcom Inc. (AVGO): Keep paying attention to its insider activity

Broadcom Inc. (NASDAQ:AVGO) saw a downside of -0.10% to close Monday at $492.34 after subtracting -$0.51 on the day. The 5-day average trading volume is 1,266,500 shares of the company’s common stock. It has gained $499.90 in the past week. An average of 1,735,425 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 1,473,960.

AVGO’s 1-month performance is -1.17% or -$5.81 on its low of $472.78 reached on 10/04/21. The company’s shares have touched a 52-week low of $344.42 and high of $510.70, with the stock’s rally to the 52-week high happening on 09/15/21. YTD, AVGO has achieved 12.44% or $54.49. However, the current price is down -3.60%% from the 52-week high price.

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Insider Transactions

On Sep 27, 15 days have gone by since the last insider trading activity for Broadcom Inc. (AVGO). Brazeal Mark David (Chief Legal Officer) most recently sold 3,150 shares at $504.09 per share on Sep 27. This transaction cost the insider $1,587,890. Director, HARTENSTEIN EDDY W, sold 4,517 shares at a price of $504.92 on Sep 23. Then, on Sep 15, Director You Harry L. sold 149 shares at a price of $500.81 per share. This transaction amounted to $74,621.

Valuation Metrics

The company’s PE ratio for the last five years has touched a high of 223.27 and a low of 7.570. AVGO stock has a beta of 0.94. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 7.66 while the price-to-book (PB) in the most recent quarter is 8.31, with the price to cash flow ratio at 28.73.

Broadcom Inc. pays an annual dividend of $14.40 per share. Its dividend yield is 2.92% and the payout ratio is 99.40%. AVGO’s most recent quarterly dividend payment was made on Sep. 30, when it paid $3.60 a share compared with prior rate of $3.60, down 0.0% from last year’s. The company has boosted its dividend for the last 1 consecutive years with the latest dividend increase of $0.35 reported on Thursday December 10 2020. Measured over the last 3 years, the Dividend has been growing by 177.55% yearly.

It is projected that Broadcom Inc.’s next ex-dividend date will be on 21-Dec. AVGO is expected to distribute $3.60 as its next dividend.

Broadcom Inc.’s quick ratio for the period ended July 30 was 2.20, with the current ratio over the same period at 2.40 meaning that AVGO stock is able to fulfill its debt obligations. As well, the company’s long term debt to equity for the quarter ending July 30 was 1.65, while the total debt to equity was 1.66. In terms of profitability, the gross margin trailing 12 months is 60.30%. The trailing 12-month EBITDA margin is 47.15% while for the period ending July 30; Broadcom Inc.’s operating margin was 28.20%. The firm’s gross profit as reported stood at $13.52 billion against revenue of $23.89 billion.

Earnings Surprise

For the quarterly period ending July 30 this year, Net income and sales went up compared to those figures reported in the previous quarter. Analysts expected AVGO to announce $6.88 per share in earnings in its latest quarter, but it posted $6.96, representing a 1.20% surprise. EBITDA for the quarter stood at more than $3.63 billion. AVGO stock balance sheet for the quarter ending July 30 shows that total liabilities totaled 51.54 billion, with total debt at $40.46 billion. Shareholders hold equity totaling $411.62 million

Technical Picture

Let’s look briefly at Broadcom Inc. (AVGO) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 11 October was 50.38% to suggest the stock is trending Neutral, with historical volatility in this time period at 18.57%.

The stock’s 5-day moving average is $490.66, reflecting a +3.44% or $16.39 change from its current price. AVGO is currently trading -1.33% above its 20-day SMA, +11.46% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 and SMA200 by +1.43% and +15.72% respectively.

Stochastic %K and %D was 58.70% and 53.71% and the average true range (ATR) pointed at 9.94. The RSI (14) points at 50.15%, while the 14-day stochastic is at 56.68% with the period’s ATR at 9.76. The stock’s 9-day MACD Oscillator is pointing at 5.15 and 0.42 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Broadcom Inc. (NASDAQ: AVGO), UBS reiterated its a Buy rating for the company but lifted their price target by $550 to $580. Analysts offering their rating for AVGO stock have a consensus rating for the stock as Overweight. Currently, 0 brokerage advisors rate AVGO as a “sell,”, while 6 advise that investors “Hold.” 1 analysts have rated the stock as underweight. 4 rates the stock as overweight while 21 have offered a “buy” rating.

What is AVGO’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $475.00 and a high of $600.00, with their median price target at $564.00. Looking at these predictions, the average price target given by analysts is for Broadcom Inc. (AVGO) stock is $559.41.


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