Broadcom Inc. (NASDAQ:AVGO) Short Interest Update

Broadcom Inc. (NASDAQ:AVGO) experienced a notable decline in short interest during January. As of January 15th, the total short interest amounted to 56,950,000 shares, reflecting a decrease of 16.9% from the previous total of 68,550,000 shares recorded on December 31st. Given that the average daily trading volume for the stock is 28,120,000 shares, the current days-to-cover ratio stands at 2.0 days.

Broadcom Trading Performance

On Thursday, shares of NASDAQ:AVGO rose by 4.5%, increasing by $9.31 to reach a price of $215.66. The trading volume for the day was 42,362,976 shares, surpassing the average volume of 31,406,502 shares. Broadcom's fifty-day moving average is $211.24, while its two-hundred-day moving average sits at $181.27. The company boasts a market capitalization of $1.01 trillion and has a price-to-earnings ratio of 175.91, with a price-to-earnings-to-growth (P/E/G) ratio of 2.52 and a beta of 1.03. Over the past year, Broadcom’s stock has hit a low of $117.43 and a high of $251.88. The company has a current ratio of 1.17, a quick ratio of 1.07, and a debt-to-equity ratio of 0.98.

Quarterly Earnings Announcement

Broadcom reported its quarterly earnings on December 12th, revealing earnings per share (EPS) of $1.42, which was above analysts' average estimate of $1.39. The company recorded a revenue of $14.05 billion, slightly less than the anticipated $14.07 billion. Broadcom's return on equity stood at 28.00%, with a net margin of 11.43%. Compared to the same quarter a year prior, revenue increased by 51.2%. In that quarter last year, the company posted an EPS of $0.98, and analysts predict that Broadcom will achieve an EPS of 5.38 for the current fiscal year.

Dividend Increase

Recently, Broadcom announced a quarterly dividend, which was paid on December 31st. Shareholders on record as of December 23rd received a dividend payment of $0.59, marking an increase from the previous quarterly dividend of $0.53. The ex-dividend date was also December 23rd. This equates to an annualized dividend of $2.36, resulting in a yield of 1.09%. The company's payout ratio currently stands at 191.87%, indicating a significant commitment to returning capital to shareholders.

Wall Street Outlook

Broadcom has garnered attention from several equity research analysts. Jefferies Financial Group raised its price target for the stock from $205.00 to $225.00, designating it as a "buy" in a report released on December 13th. Barclays increased their target from $205.00 to $260.00, labeling the stock with an "overweight" rating in a note dated January 17th. TD Cowen also raised their price objective from $210.00 to $240.00 while issuing a "buy" rating on December 13th. Furthermore, Bank of America upgraded their price target from $215.00 to $250.00, maintaining a "buy" rating. Robert W. Baird slightly increased their target from $195.00 to $210.00 with an "outperform" rating. Overall, three analysts have given the stock a hold rating, while twenty-four have rated it as a buy, resulting in a moderate buy consensus with an average target price of $225.04.

Insider Transactions

In recent insider trading news, Mark David Brazeal sold 20,168 shares of Broadcom on December 24th, with an average sell price of $238.79, totaling around $4.82 million. Following this transaction, he holds approximately 321,660 shares valued at about $76.81 million, which represents a decrease of 5.90% in his holdings. Director Harry L. You also sold 6,540 shares on December 17th at an average price of $240.00, totaling approximately $1.57 million. Post-sale, he owns about 30,450 shares valued at $7.31 million, indicating a 17.68% reduction in his stake. In the last quarter, insiders sold off 191,278 shares valued at nearly $44.96 million, and insiders currently own approximately 2% of the company’s total shares.

Institutional Holdings in Broadcom

Broadcom has seen various institutional investors buying and selling shares recently. Valmark Advisers Inc. increased its holdings by 3.2% in the fourth quarter, acquiring an additional 218 shares, bringing their total to 7,136 shares worth about $1.65 million. MOKAN Wealth Management purchased a new stake valued at around $7.01 million during the same period. Copperleaf Capital LLC and VeraBank N.A. also made new purchases. Institutional ownership of Broadcom stands at around 76.43%, indicating strong interest from large investors.

Overview of Broadcom Inc.

Broadcom Inc. is a leading technology company that designs, develops, and supplies a wide range of semiconductor devices. Their focus lies in producing complex digital and mixed signal complementary metal oxide semiconductor-based devices, as well as analog III-V based products, catering to a global market with two operational segments: Semiconductor Solutions and Infrastructure Software.

Broadcom, Stocks, Earnings, Investment, Dividend