Insights Into Broadcom Inc.’s (AVGO) Insider Activity

The stock of Broadcom Inc. (NASDAQ:AVGO) increased by increased by $1.26 on Friday to finish at $515.41, up 0.25 percent. The last five days have seen an average of 1,460,720 shares of common stock traded. 22 times new highs were reached in the current year, with a gain of $77.56. The average number of shares traded over the last 20 days was 1,578,635, while the average volume over the last 50 days totaled 1,601,522.

AVGO stock appreciated 2.20% since last month. On 10/04/21, the company’s shares reached a one-month low of $472.78. The stock touched a high of $514.79 on 10/22/21, after rallying from a low of $344.42 in 52 weeks. The price of AVGO stock has risen by 17.71% or $77.56 this year, reaching a new high 22 times. Still, the stock price is up 0.12% from the 52-week high.

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Insider Transactions

There have been 26 days since Broadcom Inc. (AVGO) last reported insider trading activity on Sep 29. On Sep 29, Director FERNANDEZ RAUL J acquired 152 shares at $489.54 each. This transaction resulted in the insider spending $74,409. On Sep 27, Brazeal Mark David sold 3,150 shares at a price of US$504.09. After the transaction, the insider now owns 26,750 shares. Director HARTENSTEIN EDDY W had earlier sold 4,517 shares on Sep 23 for $504.92 a share. The transaction was completed for $2,280,704.

Valuation Metrics

Broadcom Inc. (AVGO) has a trailing price-to-earnings (P/E) ratio of 38.18. This level actually compares unfavorably with the industry at large, as the PE for the Semiconductors industry stands at about 29.86. Further, its PE also compares favorably with the Technology sector’s trailing 12 months PE ratio, which comes in at 38.99 right now. The PE ratio of Broadcom Inc. has varied between 223.27 and 7.570 in the last five years. Beta for the stock is 0.94. There are also a few other valuation ratios worth considering, including the trailing price-to-sales (P/S) ratio of 7.98, the price-to-book (PB) ratio of 8.70, and the price-to-cash flow ratio of 29.94.

Broadcom Inc.’s dividend is $14.40 per share per year. With a dividend yield of 2.79%, AVGO has a payout ratio of 99.40%. On Sep. 30, the company paid $3.60 per share in dividends, remained unchanged from $3.60 last year. A $0.35 dividend increase was reported on Thursday December 10 2020, making it the 10 consecutive year the dividend has increased. Over the last three years, dividends have increased by 177.55%.

For the three months ended July 30, Broadcom Inc.’s quick ratio was 2.20, while its current ratio was 2.40, indicating its ability to pay off its debt. The company’s long-term debt to equity ratio for the quarter ending July 30 is 1.65, and the total debt to equity ratio is 1.66. As far as profitability goes, gross margin for the trailing twelve months is 60.30% percent. Broadcom Inc.’s EBITDA margin for the year ended July 30 was 47.15%, whereas its operating margin stood at 28.20% for the same period. Based on annual data, it had gross profit of $13.52 billion and revenue of $23.89 billion.

Investors will also look at the performance of the company’s management in order to determine the potential profitability of their investment. AVGO’s return on assets (ROA) during the last 12 months has been 7.60%. There was a 7.20% return on investment (ROI) in the past year. In the meantime, the return on equity (ROE) for the last 12 months was 24.00%. ROE has averaged -0.25 in the past year for the broader industry.

Earnings Surprise

According to Broadcom Inc.’s quarterly financial report for the quarter that ended July 30. A higher net income was reported in the quarter under review than the previous quarter. Net income for the quarter came in at $6.78 billion, while revenues rose by 14.12% to $6.61 billion. It was predicted that Broadcom Inc.’s quarterly earnings would be $6.96, but it ended up being $6.88, beating the consensus by 1.20%. EBITDA was $3.63 billion for the quarter. At the end of Broadcom Inc.’s most recent quarter ended July 30, its liabilities totaled 51.54 billion, while its total debt was $40.46 billion. Equity owned by shareholders amounts to $411.62 million.

Technical Picture

Here’s a quick look at Broadcom Inc.’s (AVGO) price momentum from a technical perspective. As of 22 October, the RSI 9-day stood at 72.03%, suggesting the stock is Overbought, with a 16.62% historical volatility rate.

The stochastic %K and %D were 91.86% and 93.79% respectively, while the average true range (ATR) was 8.71. Based on the 14-day stochastic reading of 87.04%, the RSI (14) reading is 65.64%. On the 9-day MACD Oscillator, the stock is at 10.33, and the 14-day reading is at 14.62.

Analyst Ratings

In its most recent analyst report, Goldman raised its rating on Broadcom Inc. (NASDAQ: AVGO) to a Buy. Prior to this, analysts firm rated the stock as a Neutral. Analysts have assigned Broadcom Inc. (AVGO) an Buy rating. AVGO is a stock that is recommended for selling by 0 brokerage firms, while 4 companies recommend holding. The stock is underweighted by 1 analyst. Among the analysts who rate the stock, 4 rates it overweight and 23 others recommend it as a buy.

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

The current consensus forecast for the stock is between $475.00 and $600.00, with a median target price of $572.00. In analyzing these forecasts, the average price target given by analysts for Broadcom Inc. (AVGO) is $564.85.


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