Broadcom Inc. (NASDAQ: AVGO) stock jumped 7.25% on Thursday to $728.80 against a previous-day closing price of $679.53. With 4.93 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.18 million shares. During the session, the Semiconductors company that operates in wider Technology sector, reached to the highest price of $732.38 whereas the lowest price it dropped to was $691.01. The 52-week range on AVGO shows that it touched its highest point at $698.99 and its lowest point at $415.07 during that stretch. It currently has a 1-year price target of $690.91. With its current market cap of 301.92 billion, AVGO has annualized dividend of $18.40 while the current yield stands at 2.52%. Beta for the stock currently stands at 1.10.
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Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of AVGO was up-trending over the past week, with a rise of 7.51%, but this was up by 18.28% over a month. Three-month performance surged to 26.14% while six-month performance rose 37.50%. The stock gained 39.03% in the past year, while it has gained 30.35% so far this year. A look at the trailing 12-month EPS for AVGO yields 29.74 with Next year EPS estimates of 43.84. For the next quarter, that number is 10.15. This implies an EPS growth rate of 76.80% for this year and 6.16% for next year. EPS is expected to grow by 8.30% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 45.80%.
Float and Shares Shorts:
At present, 418.00 million AVGO shares are outstanding with a float of 414.94 million shares on hand for trading. On Apr 27, 2023, short shares totaled 6.08 million, which was 1.46% higher than short shares on Mar 30, 2023. In addition to Mr. Hock E. Tan as the firm’s Pres, CEO, & Exec. Director, Ms. Kirsten M. Spears serves as its CFO & Chief Accounting Officer.
Institutional Ownership:
Through their ownership of 83.99% of AVGO’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 52.93% of AVGO, in contrast to 28.87% held by mutual funds. Shares owned by individuals account for 2.88%. As the largest shareholder in AVGO with 9.20% of the stake, The Vanguard Group, Inc. holds 38,345,001 shares worth 38,345,001. A second-largest stockholder of AVGO, Capital Research & Management Co, holds 27,586,469 shares, controlling over 6.62% of the firm’s shares. Capital Research & Management Co is the third largest shareholder in AVGO, holding 27,354,028 shares or 6.56% stake. With a 3.25% stake in AVGO, the Washington Mutual Investors Fund is the largest stakeholder. A total of 13,546,897 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 3.11% of AVGO stock, is the second-largest Mutual Fund holder. It holds 12,954,894 shares valued at 8.12 billion. Vanguard 500 Index Fund holds 2.35% of the stake in AVGO, owning 9,808,341 shares worth 6.14 billion.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jan 28, 2023, AVGO reported revenue of $8.10B and operating income of $3.41B. The EBITDA in the recently reported quarter was $4.59B and diluted EPS was $5.92.
Analysts Ratings:
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AVGO since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With AVGO analysts setting a high price target of $800.00 and a low target of $600.00, the average target price over the next 12 months is $716.40. Based on these targets, AVGO could surge 9.77% to reach the target high and fall by -17.67% to reach the target low. Reaching the average price target will result in a decline of -1.7% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Dividends & Yield:
In terms of dividends, AVGO has a current ratio of $18.4, which is $18.4 over the trailing 12-months, while a dividend of $12.36 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and AVGO currently yields $2.39. In the past year, AVGO’s dividend yield has been $2.39, but when looking at the stock over the past five years, its yield has been $3.15. Accordingly, AVGO has a current buyback yield of $2.23. This was $2.23 for the TTM, and it was $3.45 for the past five years.
Summary of Insider Activity:
Insiders traded AVGO stock several times over the past three months with 12 Buys and 11 Sells. In these transactions, 75,782 shares were bought while 75,996 shares were sold. The number of buy transactions has increased to 13 while that of sell transactions has risen to 21 over the past year. The total number of shares bought during that period was 94,719 while 219,495 shares were sold.
