Broadcom (AVGO) Shares Gap Down After Insider Selling

Shares of Broadcom Limited (NASDAQ:AVGO) gapped down before the market opened on Thursday following insider selling activity. The stock had previously closed at $255.64, but opened at $249.59. Broadcom shares last traded at $242.86, with a volume of 4962601 shares.

Specifically, SVP Bryan Ingram sold 9,396 shares of Broadcom stock in a transaction that occurred on Wednesday, March 14th. The stock was sold at an average price of $259.81, for a total transaction of $2,441,174.76. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Kirsten M. Spears sold 199 shares of Broadcom stock in a transaction that occurred on Friday, March 2nd. The shares were sold at an average price of $243.88, for a total value of $48,532.12. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 98,675 shares of company stock worth $25,032,829. 3.30% of the stock is owned by insiders.

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Several brokerages recently issued reports on AVGO. Vetr raised Broadcom from a “hold” rating to a “buy” rating and set a $269.37 target price on the stock in a research report on Thursday, January 25th. UBS began coverage on Broadcom in a research report on Wednesday, April 4th. They set a “buy” rating and a $350.00 target price on the stock. Deutsche Bank began coverage on Broadcom in a research report on Thursday, March 15th. They set a “buy” rating and a $325.00 target price on the stock. Zacks Investment Research cut Broadcom from a “buy” rating to a “hold” rating in a research report on Wednesday, February 7th. Finally, Canaccord Genuity reaffirmed a “buy” rating and set a $340.00 target price (up previously from $325.00) on shares of Broadcom in a research report on Friday, March 16th. Five investment analysts have rated the stock with a hold rating, thirty-one have assigned a buy rating and one has assigned a strong buy rating to the company. Broadcom currently has an average rating of “Buy” and a consensus price target of $314.23.



The company has a market cap of $103,402.71, a PE ratio of 16.98, a price-to-earnings-growth ratio of 1.13 and a beta of 0.92. The company has a quick ratio of 5.04, a current ratio of 5.70 and a debt-to-equity ratio of 0.60.

Broadcom (NASDAQ:AVGO) last issued its earnings results on Thursday, March 15th. The semiconductor manufacturer reported $5.12 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $4.41 by $0.71. Broadcom had a return on equity of 29.50% and a net margin of 41.37%. The firm had revenue of $5.33 billion for the quarter, compared to analyst estimates of $5.32 billion. During the same period in the previous year, the company posted $3.63 earnings per share. The business’s revenue was up 28.5% on a year-over-year basis. equities analysts forecast that Broadcom Limited will post 17.43 EPS for the current fiscal year.

The business also recently disclosed a quarterly dividend, which was paid on Thursday, March 29th. Investors of record on Thursday, March 22nd were paid a dividend of $1.75 per share. This represents a $7.00 dividend on an annualized basis and a dividend yield of 2.88%. This is a positive change from Broadcom’s previous quarterly dividend of $0.40. The ex-dividend date of this dividend was Wednesday, March 21st. Broadcom’s payout ratio is presently 48.95%.

Broadcom announced that its board has initiated a share repurchase plan on Thursday, April 12th that authorizes the company to buyback $12.00 billion in outstanding shares. This buyback authorization authorizes the semiconductor manufacturer to repurchase up to 12.2% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board believes its stock is undervalued.

Several large investors have recently added to or reduced their stakes in the stock. BKD Wealth Advisors LLC raised its stake in shares of Broadcom by 8.7% during the 4th quarter. BKD Wealth Advisors LLC now owns 2,399 shares of the semiconductor manufacturer’s stock valued at $616,000 after purchasing an additional 193 shares during the period. HM Payson & Co. raised its stake in shares of Broadcom by 6.5% during the 4th quarter. HM Payson & Co. now owns 3,273 shares of the semiconductor manufacturer’s stock valued at $841,000 after purchasing an additional 200 shares during the period. Kistler Tiffany Companies LLC raised its stake in shares of Broadcom by 25.0% during the 4th quarter. Kistler Tiffany Companies LLC now owns 1,040 shares of the semiconductor manufacturer’s stock valued at $267,000 after purchasing an additional 208 shares during the period. M&R Capital Management Inc. raised its stake in shares of Broadcom by 0.7% during the 4th quarter. M&R Capital Management Inc. now owns 31,590 shares of the semiconductor manufacturer’s stock valued at $8,112,000 after purchasing an additional 210 shares during the period. Finally, Oxbow Advisors LLC raised its stake in shares of Broadcom by 14.1% during the 4th quarter. Oxbow Advisors LLC now owns 1,720 shares of the semiconductor manufacturer’s stock valued at $442,000 after purchasing an additional 213 shares during the period. Institutional investors own 89.50% of the company’s stock.

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Broadcom Company Profile

Broadcom Limited designs, develops, and supplies a range of 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 through four segments: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial & Other.

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