Broadcom (NASDAQ:AVGO) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research report issued on Wednesday.
According to Zacks, “Broadcom is benefiting from strong demand of its wireless solutions and expanding product portfolio, which makes it well-positioned to address the needs of rapidly growing technologies like IoT and 5G. Broadcom has recently inked financing agreements with various institutions to fund Qualcomm’s proposed takeover. If completed, then this deal will make it the third-largest chipmaker, behind Intel and Samsung. The company also has strong ties with leading OEMs across multiple target markets that will help it to gain key insights into the requirements of customers. Moreover, the upcoming launch of the next generation WiFi products is expected to be a growth driver for the segment. However, customer concentration, intensifying competition, integration risks due to frequent acquisitions and leverage balance sheet are key headwinds.”
A number of other equities research analysts also recently weighed in on AVGO. SunTrust Banks raised their target price on Broadcom to $325.00 and gave the company a “positive” rating in a report on Tuesday, November 7th. Vetr raised Broadcom from a “hold” rating to a “buy” rating and set a $291.95 target price on the stock in a report on Monday, November 13th. Sanford C. Bernstein reaffirmed a “buy” rating on shares of Broadcom in a report on Monday, November 13th. Nomura reaffirmed a “buy” rating on shares of Broadcom in a report on Tuesday, November 14th. Finally, Royal Bank of Canada raised their target price on Broadcom from $300.00 to $315.00 and gave the company a “top pick” rating in a report on Monday, November 20th. Three research analysts have rated the stock with a hold rating, thirty-two have given a buy rating and one has assigned a strong buy rating to the company. Broadcom currently has an average rating of “Buy” and an average price target of $305.81.
Shares of Broadcom (NASDAQ:AVGO) opened at $250.96 on Wednesday. The stock has a market capitalization of $101,382.08, a P/E ratio of 58.91, a P/E/G ratio of 1.03 and a beta of 0.88. Broadcom has a 12-month low of $208.44 and a 12-month high of $285.68. The company has a debt-to-equity ratio of 0.75, a quick ratio of 5.68 and a current ratio of 6.26.
Broadcom (NASDAQ:AVGO) last issued its earnings results on Wednesday, December 6th. The semiconductor manufacturer reported $4.59 earnings per share for the quarter, beating the Zacks’ consensus estimate of $4.52 by $0.07. The firm had revenue of $4.84 billion for the quarter, compared to the consensus estimate of $4.84 billion. Broadcom had a return on equity of 28.64% and a net margin of 10.18%. The company’s revenue was up 17.1% compared to the same quarter last year. During the same quarter last year, the business posted $3.47 EPS. analysts forecast that Broadcom will post 17.41 EPS for the current fiscal year.
In related news, insider Kirsten M. Spears sold 199 shares of the firm’s stock in a transaction on Friday, March 2nd. The stock was sold at an average price of $243.88, for a total transaction of $48,532.12. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Hock E. Tan sold 20,000 shares of the firm’s stock in a transaction on Friday, December 15th. The stock was sold at an average price of $259.68, for a total value of $5,193,600.00. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 84,481 shares of company stock valued at $21,805,795. 3.32% of the stock is owned by corporate insiders.
A number of large investors have recently made changes to their positions in AVGO. Janus Henderson Group PLC raised its position in Broadcom by 80.3% during the 3rd quarter. Janus Henderson Group PLC now owns 3,397,443 shares of the semiconductor manufacturer’s stock worth $823,980,000 after purchasing an additional 1,512,956 shares during the last quarter. Barrow Hanley Mewhinney & Strauss LLC bought a new position in Broadcom during the 4th quarter worth $215,260,000. Coatue Management LLC raised its position in Broadcom by 28.2% during the 4th quarter. Coatue Management LLC now owns 3,735,957 shares of the semiconductor manufacturer’s stock worth $959,768,000 after purchasing an additional 821,739 shares during the last quarter. Egerton Capital UK LLP raised its position in Broadcom by 112.8% during the 3rd quarter. Egerton Capital UK LLP now owns 1,493,024 shares of the semiconductor manufacturer’s stock worth $362,118,000 after purchasing an additional 791,460 shares during the last quarter. Finally, Asset Management One Co. Ltd. raised its position in Broadcom by 5,482.5% during the 3rd quarter. Asset Management One Co. Ltd. now owns 604,530 shares of the semiconductor manufacturer’s stock worth $146,624,000 after purchasing an additional 593,701 shares during the last quarter. 88.67% of the stock is owned by institutional investors and hedge funds.
Broadcom Limited is a designer, developer and global supplier of a range of semiconductor devices with a focus on digital and mixed signal complementary metal oxide semiconductor (CMOS)-based devices and analog III-V based products. The Company operates through four segments: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial & Other.
Get a free copy of the Zacks research report on Broadcom (AVGO)
For more information about research offerings from Zacks Investment Research, visit Zacks.com