As of Thursday close, Broadcom Inc.’s (NASDAQ:AVGO) stock was down -$22.21, moving down -2.67 percent to $808.36. The average number of shares traded per day over the past five days has been 2,944,640 shares. 1 time new highs have been achieved over the past 5 days, with a -$63.28 fall in that time frame. In the last twenty days, the average volume was 2,734,670, while in the previous 50 days, it was 2,425,828.
Since last month, AVGO stock retreated -5.54%. Shares of the company fell to $795.09 on 09/21/23, the lowest level in the past month. A 52-week high of $923.67 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 44.57% or $249.23, and marked a new high 21 times. However, the stock has declined by -12.48% since its 52-week high.
AVGO stock investors should be aware that Broadcom Inc. (AVGO) stock had its last reported insider trading activity 7 days ago on Sep 15. You Harry L., the Director of the company, purchased of 1,000 shares for $858.96 on Sep 15. It resulted in a $858,958 investment by the insider. HARTENSTEIN EDDY W sold 1,500 shares at an average price of $855.68 on Sep 12. The insider now owns 9,123 shares following the transaction. On Sep 06, Director Low Check Kian bought 11,000 shares at $872.03 apiece. The transaction was valued at $9,592,282.
Valuation Metrics
Right now, Broadcom Inc. (AVGO) has a P/E ratio of about 24.70. The stock’s beta is 1.14. Besides these, the trailing price-to-sales (P/S) ratio of 9.63, the price-to-book (PB) ratio of 15.12, and the price-to-cash flow ratio of 19.66 may also be considered.
The latest dividend of $4.60 per share was paid out, remained unchanged from last year’s $4.60. On Thursday December 8 2022, a $0.50 dividend increase was announced.
Financial Health
In the three months ended July 30, Broadcom Inc.’s quick ratio stood at 2.20, while its current ratio was 2.50, 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 July 30 was 1.73, and the total debt-to-equity ratio was 1.78. On the profitability front, the trailing twelve-month gross margin is 68.30% percent. In the year ended July 30, EBITDA margin amounted to 58.04%, whereas operating margins totaled 45.00%. 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 61.60%.
In Broadcom Inc.’s quarter-end financial report for July 30, it reported total debt of $38.22 billion. According to the earnings report, the company had a higher net income in the recent quarter than it did in the previous quarter. AVGO’s revenue rose 4.64% to $8.73 billion during the quarter, while net income inched up to $8.88 billion. While analysts expected Broadcom Inc. to report $9.76 quarterly earnings, the actual figure was $9.87 per share, beating the consensus estimate by 1.10%. During the quarter, the company generated $4.79 billion in EBITDA. The liabilities of Broadcom Inc. were 49.52 billion at the end of its most recent quarter ended July 30, and its total debt was $39.34 billion. The value of shareholders’ equity is $412.74 million.
Technical Picture
This quick technical analysis looks at Broadcom Inc.’s (AVGO) price momentum. With a historical volatility rate of 24.50%, the RSI 9-day stood at 29.28% on 21 September.
With respect to its five-day moving average, the current Broadcom Inc. price is down by -7.26% percent or -$63.28. At present, AVGO shares trade -7.78% below its 20-day simple moving average and +29.03% percent above its 100-day simple moving average. However, the stock is currently trading approximately -9.17% below its SMA50 and +49.47% above its SMA200.
Stochastic coefficient K was 8.41% and Stochastic coefficient D was 9.77%, while ATR was 23.27. Given the Stochastic reading of 12.43% for the 14-day period, the RSI (14) reading has been calculated as 35.99%. As of today, the MACD Oscillator reading stands at -17.07, while the 14-day reading stands at -24.16.
Analyst Ratings
TD Cowen reiterated its a Market perform rating on Broadcom Inc. (NASDAQ: AVGO) in a note to investors. The analysts firm has however raised their price target to $900, representing a possible -1.05% increase in the stock price. 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 19 recommending it as overweight.
With a median target price of $995.00, the current consensus forecast for the stock is $900.00 – $1050.00. Based on these forecasts, analysts predict Broadcom Inc. (AVGO) will achieve an average price target of $979.60.
