As of Thursday close, Broadcom Inc.’s (NASDAQ:AVGO) stock was up $30.61, moving up 3.43 percent to $922.89. The average number of shares traded per day over the past five days has been 2,894,860 shares. 4 times new highs have been achieved over the past 5 days, with a $68.43 gain in that time frame. In the last twenty days, the average volume was 2,193,720, while in the previous 50 days, it was 2,331,948.
Since last month, AVGO stock rose 3.43%. Shares of the company fell to $812.00 on 08/18/23, the lowest level in the past month. A 52-week high of $923.18 was reached on 08/31/23 after having rallying from a 52-week low of $415.07. Since the beginning of this year, AVGO’s stock price has risen by 65.06% or $363.76, and marked a new high 21 times. However, the stock has declined by -0.03% since its 52-week high.
AVGO stock investors should be aware that Broadcom Inc. (AVGO) stock had its last reported insider trading activity 85 days ago on Jun 08. Spears Kirsten M., the CFO & Chief Accounting Officer of the company, disposed of 6,000 shares for $797.82 on Jun 08. It resulted in a $4,786,936 divestment by the insider. Kawwas Charlie B sold 1,645 shares at an average price of $801.33 on Jun 08. The insider now owns 75,290 shares following the transaction. On Mar 28, CFO & Chief Accounting Officer Spears Kirsten M. sold 7,000 shares at $619.72 apiece. The transaction was valued at $4,338,040.
Valuation Metrics
Right now, Broadcom Inc. (AVGO) has a P/E ratio of about 28.88. The stock’s beta is 1.13. Besides these, the trailing price-to-sales (P/S) ratio of 10.90, the price-to-book (PB) ratio of 17.40, and the price-to-cash flow ratio of 22.37 may also be considered.
The latest dividend of $4.60 per share was paid out, remained unchanged from last year’s $4.60.
Financial Health
In the three months ended April 29, Broadcom Inc.’s quick ratio stood at 2.10, while its current ratio was 2.40, showing that the company is able to pay off its debt. According to company report, the long-term debt-to-equity ratio for the quarter ending April 29 was 1.74, and the total debt-to-equity ratio was 1.79. On the profitability front, the trailing twelve-month gross margin is 67.70% percent. In the year ended April 29, EBITDA margin amounted to 58.04%, whereas operating margins totaled 45.20%. Based on annual data, AVGO earned $22.09 billion in gross profit and brought in $33.2 billion in revenue.
A company’s management is another factor that investors consider when determining the profitability of an investment. In the past year, return on investment (ROI) was 21.40%. Return on equity (ROE) for the past 12 months was 61.00%.
In Broadcom Inc.’s quarter-end financial report for April 29, it reported total debt of $38.19 billion. According to the earnings report, the company had a lower net income in the recent quarter than it did in the previous quarter. AVGO’s revenue rose 7.21% to $8.91 billion during the quarter, while net income inched up to $8.73 billion. While analysts expected Broadcom Inc. to report $10.08 quarterly earnings, the actual figure was $10.32 per share, beating the consensus estimate by 2.40%. During the quarter, the company generated $4.95 billion in EBITDA. The liabilities of Broadcom Inc. were 49.66 billion at the end of its most recent quarter ended April 29, and its total debt was $39.43 billion. The value of shareholders’ equity is $412.69 million.
Technical Picture
This quick technical analysis looks at Broadcom Inc.’s (AVGO) price momentum. With a historical volatility rate of 34.01%, the RSI 9-day stood at 70.23% on 31 August.
With respect to its five-day moving average, the current Broadcom Inc. price is up by +8.01% percent or $68.43. At present, AVGO shares trade +4.28% above its 20-day simple moving average and +47.10% percent above its 100-day simple moving average. However, the stock is currently trading approximately +8.88% above its SMA50 and +78.13% above its SMA200.
Stochastic coefficient K was 86.99% and Stochastic coefficient D was 71.48%, while ATR was 27.20. Given the Stochastic reading of 99.30% for the 14-day period, the RSI (14) reading has been calculated as 63.94%. As of today, the MACD Oscillator reading stands at 27.26, while the 14-day reading stands at 40.81.
Analyst Ratings
Wolfe Research launched its rating on Broadcom Inc. (NASDAQ: AVGO) to a Peer perform in a note to investors on July 20, 2023. Broadcom Inc. (AVGO) has been rated Overweight by analysts. According to 0 brokerage firms, AVGO is a sell, and 6 firms recommend it is a Hold. There are 1 analyst who say the stock is underweight. A total of 4 analysts rate Broadcom Inc. stock as buy, with 18 recommending it as overweight.
With a median target price of $907.50, the current consensus forecast for the stock is $800.00 – $1050.00. Based on these forecasts, analysts predict Broadcom Inc. (AVGO) will achieve an average price target of $917.27.
