Barclays Raises Broadcom (NASDAQ:AVGO) Price Target to $700.00

Broadcom (NASDAQ:AVGO) had its target price upped by Barclays from $650.00 to $700.00 in a report published on Wednesday, Price Targets.com reports. They currently have an overweight rating on the semiconductor manufacturer’s stock.

Other equities research analysts have also issued research reports about the stock. Mizuho lifted their price objective on shares of Broadcom from $600.00 to $665.00 and gave the company a buy rating in a report on Friday, December 10th. Truist Securities boosted their price target on shares of Broadcom from $564.00 to $659.00 and gave the company a buy rating in a report on Friday, December 10th. JPMorgan Chase & Co. boosted their price target on shares of Broadcom from $655.00 to $700.00 and gave the company an overweight rating in a report on Monday, December 6th. Susquehanna Bancshares boosted their price target on shares of Broadcom from $650.00 to $680.00 and gave the company a positive rating in a report on Friday, December 10th. Finally, Morgan Stanley boosted their price target on shares of Broadcom from $572.00 to $723.00 and gave the company an overweight rating in a report on Friday, December 10th. Stating that despite Broadcom reporting generally in-line numbers for the quarter, there is a lot to like in the print. The positives include the company continuing to expand its leading operating margin to impressive levels and its solid raise to next quarter’s revenue outlook, said Moore, who adds that management committed to a dividend raise of approximately 14% and announced a new, $10B share repurchase plan in the absence of large M&A. Four research analysts have rated the stock with a hold rating and twenty-five have given a buy rating to the company’s stock. Based on data from MarketBeat, Broadcom presently has a consensus rating of Buy and a consensus price target of $658.68.

Shares of AVGO opened at $596.37 on Wednesday. Broadcom has a 1-year low of $419.14 and a 1-year high of $677.76. The company has a 50-day moving average of $603.87 and a 200 day moving average of $531.48. The firm has a market capitalization of $246.22 billion, a price-to-earnings ratio of 39.76, a PEG ratio of 1.39 and a beta of 0.97. The company has a debt-to-equity ratio of 1.58, a current ratio of 2.64 and a quick ratio of 2.43.

Broadcom (NASDAQ:AVGO) last announced its quarterly earnings data on Thursday, December 9th. The semiconductor manufacturer reported $7.81 earnings per share for the quarter, beating analysts’ consensus estimates of $7.74 by $0.07. Broadcom had a net margin of 24.54% and a return on equity of 46.31%. The company had revenue of $7.41 billion during the quarter, compared to analyst estimates of $7.36 billion. During the same quarter last year, the business posted $5.58 EPS. The firm’s revenue for the quarter was up 14.5% on a year-over-year basis. On average, equities analysts anticipate that Broadcom will post 29.58 earnings per share for the current fiscal year.

The firm also recently disclosed a quarterly dividend, which was paid on Friday, December 31st. Stockholders of record on Wednesday, December 22nd were issued a $4.10 dividend. This is an increase from Broadcom’s previous quarterly dividend of $3.60. This represents a $16.40 annualized dividend and a dividend yield of 2.75%. The ex-dividend date of this dividend was Tuesday, December 21st. Broadcom’s dividend payout ratio is 109.33%.

Broadcom announced that its board has approved a stock repurchase plan on Thursday, December 9th that allows the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization allows the semiconductor manufacturer to purchase up to 4.2% of its shares through open market purchases. Shares repurchase plans are often a sign that the company’s board of directors believes its shares are undervalued.

In other Broadcom news, CFO Kirsten M. Spears sold 2,000 shares of the company’s stock in a transaction on Tuesday, December 21st. The shares were sold at an average price of $648.10, for a total transaction of $1,296,200.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Raul J. Fernandez acquired 81 shares of Broadcom stock in a transaction on Tuesday, December 14th. The shares were bought at an average price of $612.61 per share, with a total value of $49,621.41. The disclosure for this purchase can be found here. 2.40% of the stock is owned by corporate insiders.

Several hedge funds and other institutional investors have recently modified their holdings of the company. Capital International Investors raised its position in shares of Broadcom by 2.1% in the second quarter. Capital International Investors now owns 33,942,430 shares of the semiconductor manufacturer’s stock valued at $16,185,173,000 after buying an additional 706,502 shares during the last quarter. BlackRock Inc. grew its holdings in shares of Broadcom by 1.0% in the third quarter. BlackRock Inc. now owns 27,326,466 shares of the semiconductor manufacturer’s stock valued at $13,251,423,000 after purchasing an additional 280,771 shares during the period. State Street Corp grew its holdings in shares of Broadcom by 1.4% in the second quarter. State Street Corp now owns 15,873,523 shares of the semiconductor manufacturer’s stock valued at $7,569,131,000 after purchasing an additional 221,137 shares during the period. Geode Capital Management LLC grew its holdings in shares of Broadcom by 2.5% in the third quarter. Geode Capital Management LLC now owns 6,611,606 shares of the semiconductor manufacturer’s stock valued at $3,197,312,000 after purchasing an additional 164,113 shares during the period. Finally, Charles Schwab Investment Management Inc. grew its holdings in shares of Broadcom by 11.5% in the second quarter. Charles Schwab Investment Management Inc. now owns 4,309,002 shares of the semiconductor manufacturer’s stock valued at $2,054,704,000 after purchasing an additional 444,187 shares during the period. Institutional investors and hedge funds own 79.51% of the company’s stock.

About Broadcom

Broadcom, Inc is a global technology company, which designs, develops and supplies semiconductor and infrastructure software solutions. It operates through the following segments: Semiconductor Solutions and Infrastructure Software. The Semiconductor Solutions segment manages movement of data in data center, telecom, enterprise and embedded networking applications.

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