Broadcom (NASDAQ:AVGO) Stock Rating Upgraded by HSBC

Broadcom (NASDAQ:AVGO) was upgraded by analysts at HSBC from a “hold” rating to a “buy” rating in a research report issued on Tuesday, MarketBeat reports. The brokerage presently has a $400.00 price objective on the semiconductor manufacturer’s stock. HSBC’s price target indicates a potential upside of 51.14% from the stock’s current price.

Several other brokerages also recently commented on AVGO. Susquehanna increased their price target on Broadcom from $280.00 to $300.00 and gave the company a “positive” rating in a report on Friday, June 6th. Cantor Fitzgerald reaffirmed an “overweight” rating and set a $300.00 price objective on shares of Broadcom in a report on Friday, June 6th. Mizuho lifted their target price on shares of Broadcom from $300.00 to $310.00 and gave the stock an “outperform” rating in a report on Friday, June 6th. Cowen reissued a “buy” rating on shares of Broadcom in a research report on Friday, June 6th. Finally, JPMorgan Chase & Co. raised their price target on Broadcom from $250.00 to $325.00 and gave the company an “overweight” rating in a research report on Friday, June 6th. Two research analysts have rated the stock with a hold rating, twenty-six have assigned a buy rating and two have given a strong buy rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of “Buy” and a consensus target price of $281.25.

Broadcom Trading Up 0.3%

Shares of NASDAQ:AVGO opened at $264.65 on Tuesday. The company has a current ratio of 1.08, a quick ratio of 0.98 and a debt-to-equity ratio of 0.89. The stock has a market capitalization of $1.24 trillion, a PE ratio of 99.12, a P/E/G ratio of 1.88 and a beta of 1.11. Broadcom has a 1 year low of $128.50 and a 1 year high of $269.87. The firm has a fifty day moving average price of $225.48 and a 200 day moving average price of $213.98.

Broadcom (NASDAQ:AVGO) last released its quarterly earnings results on Thursday, June 5th. The semiconductor manufacturer reported $1.58 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.57 by $0.01. The company had revenue of $15 billion during the quarter, compared to the consensus estimate of $14.98 billion. Broadcom had a return on equity of 35.49% and a net margin of 22.64%. The firm’s revenue was up 20.2% on a year-over-year basis. During the same quarter in the prior year, the company posted $10.96 EPS. Analysts expect that Broadcom will post 5.38 EPS for the current fiscal year.

Broadcom announced that its Board of Directors has authorized a stock repurchase plan on Monday, April 7th that allows the company to buyback $10.00 billion in outstanding shares. This buyback authorization allows the semiconductor manufacturer to repurchase up to 1.4% of its stock through open market purchases. Stock buyback plans are generally an indication that the company’s board believes its shares are undervalued.

Insider Activity at Broadcom

In other Broadcom news, insider Charlie B. Kawwas sold 10,000 shares of the stock in a transaction on Wednesday, June 11th. The stock was sold at an average price of $252.88, for a total transaction of $2,528,800.00. Following the completion of the transaction, the insider now directly owns 789,784 shares in the company, valued at $199,720,577.92. This represents a 1.25% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Mark David Brazeal sold 50,000 shares of the business’s stock in a transaction on Monday, June 23rd. The shares were sold at an average price of $253.28, for a total transaction of $12,664,000.00. Following the completion of the sale, the insider now owns 415,956 shares in the company, valued at $105,353,335.68. This represents a 10.73% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 301,468 shares of company stock valued at $74,670,250 over the last quarter. 2.00% of the stock is owned by company insiders.

Institutional Investors Weigh In On Broadcom

Hedge funds have recently made changes to their positions in the company. Canton Hathaway LLC acquired a new position in shares of Broadcom in the 4th quarter worth approximately $26,000. Rialto Wealth Management LLC bought a new position in Broadcom in the 4th quarter valued at $26,000. Sunbeam Capital Management LLC acquired a new position in Broadcom in the fourth quarter worth $28,000. Vermillion Wealth Management Inc. bought a new stake in shares of Broadcom during the fourth quarter worth $30,000. Finally, Sellwood Investment Partners LLC acquired a new stake in shares of Broadcom in the fourth quarter valued at $32,000. Institutional investors and hedge funds own 76.43% of the company’s stock.

Broadcom Company Profile

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.