Broadcom (NASDAQ:AVGO) Trading Down 3.7% – Should You Sell?

Shares of Broadcom Inc. (NASDAQ:AVGO) dropped 3.7% during mid-day trading on Friday . The stock traded as low as $363.83 and last traded at $365.02. Approximately 33,431,265 shares changed hands during trading, an increase of 26% from the average daily volume of 26,495,498 shares. The stock had previously closed at $378.91.

Wall Street Analysts Forecast Growth

Several research analysts recently issued reports on the company. Seaport Research Partners reaffirmed a “neutral” rating on shares of Broadcom in a research report on Wednesday, April 8th. Erste Group Bank raised Broadcom from a “hold” rating to a “buy” rating in a research note on Friday, June 5th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and issued a $515.00 price objective (up from $430.00) on shares of Broadcom in a research note on Thursday, June 4th. The Goldman Sachs Group reiterated a “buy” rating and issued a $525.00 target price on shares of Broadcom in a report on Thursday, June 4th. Finally, Dbs Bank upgraded shares of Broadcom to a “moderate buy” rating in a report on Thursday, June 18th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, Broadcom has a consensus rating of “Moderate Buy” and a consensus target price of $493.24.

Broadcom Stock Down 3.7%

The company has a market cap of $1.74 trillion, a price-to-earnings ratio of 60.84, a P/E/G ratio of 0.67 and a beta of 1.41. The stock’s 50-day moving average is $412.34 and its 200-day moving average is $363.34. The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71.

Broadcom (NASDAQ:AVGO) last posted its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, topping analysts’ consensus estimates of $2.40 by $0.04. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The business had revenue of $22.19 billion during the quarter, compared to analysts’ expectations of $22.13 billion. During the same period last year, the company posted $1.58 earnings per share. The business’s quarterly revenue was up 47.9% on a year-over-year basis. On average, analysts anticipate that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 22nd will be given a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend is Monday, June 22nd. Broadcom’s payout ratio is presently 43.33%.

Insider Buying and Selling at Broadcom

In related news, insider S. Ram Velaga sold 17,260 shares of Broadcom stock in a transaction on Thursday, April 9th. The shares were sold at an average price of $352.12, for a total value of $6,077,591.20. Following the completion of the sale, the insider owned 65,932 shares of the company’s stock, valued at approximately $23,215,975.84. This trade represents a 20.75% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Mark David Brazeal sold 4,825 shares of the business’s stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $394.91, for a total transaction of $1,905,440.75. Following the sale, the insider directly owned 269,989 shares of the company’s stock, valued at approximately $106,621,355.99. The trade was a 1.76% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 59,385 shares of company stock worth $21,301,057 in the last quarter. Company insiders own 1.90% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in AVGO. Fullerton Advisors LLC grew its holdings in shares of Broadcom by 1.3% in the first quarter. Fullerton Advisors LLC now owns 1,989 shares of the semiconductor manufacturer’s stock valued at $616,000 after acquiring an additional 25 shares in the last quarter. NORTHSTAR ASSET MANAGEMENT Co lifted its holdings in Broadcom by 0.5% during the first quarter. NORTHSTAR ASSET MANAGEMENT Co now owns 5,350 shares of the semiconductor manufacturer’s stock worth $1,656,000 after acquiring an additional 25 shares during the period. RFG Holdings Inc. lifted its holdings in Broadcom by 0.3% during the first quarter. RFG Holdings Inc. now owns 8,499 shares of the semiconductor manufacturer’s stock worth $2,631,000 after acquiring an additional 26 shares during the period. Yukon Wealth Management Inc. boosted its position in Broadcom by 1.1% in the first quarter. Yukon Wealth Management Inc. now owns 2,501 shares of the semiconductor manufacturer’s stock worth $774,000 after purchasing an additional 26 shares during the last quarter. Finally, Capital Planning LLC boosted its position in Broadcom by 0.7% in the first quarter. Capital Planning LLC now owns 4,044 shares of the semiconductor manufacturer’s stock worth $1,252,000 after purchasing an additional 28 shares during the last quarter. 76.43% of the stock is owned by institutional investors.

About Broadcom

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops and supplies semiconductor and infrastructure software solutions for a broad range of markets. The company’s semiconductor business provides components and systems for wired and wireless communications, enterprise and cloud storage, networking and broadband access, serving original equipment manufacturers, cloud service providers, telecommunications carriers and industrial customers worldwide. Broadcom is headquartered in Irvine, California, and operates globally with research, development and sales organizations across North America, Europe and Asia.

On the semiconductor side, Broadcom’s portfolio includes system-on-chip (SoC) and application-specific integrated circuit (ASIC) solutions, radio-frequency and connectivity components, Ethernet switching and PHY devices, storage adapters and controllers, optical transceivers and other networking silicon.