Broadcom Target of Unusually Large Options Trading (NASDAQ:AVGO)

Broadcom Inc. (NASDAQ:AVGO) was the target of some unusual options trading activity on Friday. Investors acquired 87,676 call options on the stock. This represents an increase of 44% compared to the average daily volume of 60,732 call options.

Analyst Ratings Changes

Several equities research analysts recently issued reports on the company. Piper Sandler upped their price target on Broadcom from $1,650.00 to $2,000.00 and gave the company an “overweight” rating in a research report on Thursday, June 13th. Jefferies Financial Group lifted their price target on shares of Broadcom from $1,550.00 to $2,050.00 and gave the company a “buy” rating in a report on Thursday, June 13th. Citigroup reaffirmed a “buy” rating and set a $1,560.00 price objective on shares of Broadcom in a research report on Tuesday, June 11th. Sanford C. Bernstein raised their target price on shares of Broadcom from $1,600.00 to $1,950.00 and gave the stock an “outperform” rating in a report on Thursday, June 13th. Finally, Cantor Fitzgerald upped their target price on Broadcom from $1,300.00 to $1,600.00 and gave the company an “overweight” rating in a report on Monday, March 4th. Three investment analysts have rated the stock with a hold rating and twenty-six have issued a buy rating to the stock. Based on data from MarketBeat, Broadcom presently has an average rating of “Moderate Buy” and an average target price of $1,673.04.

Insider Activity

In other news, CEO Hock E. Tan sold 2,000 shares of the stock in a transaction that occurred on Tuesday, April 2nd. The stock was sold at an average price of $1,312.25, for a total transaction of $2,624,500.00. Following the completion of the transaction, the chief executive officer now directly owns 168,096 shares in the company, valued at approximately $220,583,976. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. In other news, CEO Hock E. Tan sold 2,000 shares of the business’s stock in a transaction dated Tuesday, April 2nd. The shares were sold at an average price of $1,312.25, for a total value of $2,624,500.00. Following the completion of the sale, the chief executive officer now owns 168,096 shares of the company’s stock, valued at approximately $220,583,976. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Justine Page sold 110 shares of the stock in a transaction dated Wednesday, April 10th. The stock was sold at an average price of $1,323.00, for a total transaction of $145,530.00. Following the transaction, the director now directly owns 3,125 shares in the company, valued at approximately $4,134,375. The disclosure for this sale can be found here. Over the last three months, insiders sold 10,364 shares of company stock worth $13,953,966. 2.00% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of AVGO. Stuart Chaussee & Associates Inc. bought a new position in Broadcom during the fourth quarter valued at approximately $25,000. Legend Financial Advisors Inc. lifted its stake in shares of Broadcom by 72.7% in the 1st quarter. Legend Financial Advisors Inc. now owns 19 shares of the semiconductor manufacturer’s stock valued at $25,000 after purchasing an additional 8 shares during the last quarter. PSI Advisors LLC boosted its holdings in Broadcom by 66.7% in the fourth quarter. PSI Advisors LLC now owns 25 shares of the semiconductor manufacturer’s stock worth $28,000 after purchasing an additional 10 shares in the last quarter. BKM Wealth Management LLC acquired a new position in Broadcom during the fourth quarter worth $29,000. Finally, Richardson Capital Management LLC bought a new position in Broadcom during the first quarter valued at about $29,000. 76.43% of the stock is owned by institutional investors and hedge funds.

Broadcom Stock Performance

Shares of AVGO opened at $1,605.53 on Friday. The company has a debt-to-equity ratio of 1.02, a current ratio of 1.25 and a quick ratio of 1.16. The firm’s 50 day moving average is $1,433.70 and its 200-day moving average is $1,302.33. Broadcom has a 12-month low of $795.09 and a 12-month high of $1,851.62. The stock has a market capitalization of $747.36 billion, a P/E ratio of 69.06, a P/E/G ratio of 2.76 and a beta of 1.17.

Shares of Broadcom are going to split on Monday, July 15th. The 10-1 split was announced on Wednesday, June 12th. The newly issued shares will be payable to shareholders after the market closes on Friday, July 12th.

Broadcom (NASDAQ:AVGO) last issued its quarterly earnings results on Wednesday, June 12th. The semiconductor manufacturer reported $10.96 earnings per share for the quarter, topping analysts’ consensus estimates of $10.78 by $0.18. Broadcom had a return on equity of 35.82% and a net margin of 24.10%. The firm had revenue of $12.49 billion for the quarter, compared to analysts’ expectations of $12.06 billion. During the same quarter last year, the business posted $9.51 EPS. Broadcom’s revenue was up 43.0% on a year-over-year basis. Equities research analysts anticipate that Broadcom will post 37.19 EPS for the current fiscal year.

Broadcom Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, June 28th. Shareholders of record on Monday, June 24th were paid a dividend of $5.25 per share. This represents a $21.00 annualized dividend and a yield of 1.31%. The ex-dividend date was Monday, June 24th. Broadcom’s dividend payout ratio (DPR) is currently 90.32%.

About Broadcom

Broadcom Inc designs, develops, and supplies various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates in two segments, Semiconductor Solutions and Infrastructure Software.