Broadcom Inc. [NASDAQ: AVGO] gained 0.35% on the last trading session, reaching $329.54 price per share at the time. The company report on August 4, 2020 that Broadcom Recommends Stockholders Reject “Mini-Tender” Offer by TRC Capital Investment Corporation.
Broadcom Inc. (NASDAQ: AVGO), has been notified that TRC Capital Investment Corporation (“TRC Capital”) has made an unsolicited “mini-tender” offer to purchase up to 500,000 shares of Broadcom’s common stock at $292.50 per share. The offer price is approximately 4.35% lower than the $305.79 per share closing price for Broadcom’s common stock on the Nasdaq Global Select Stock Market on July 24, 2020, the last trading day before the commencement of TRC Capital’s mini-tender offer, and an approximately 8.94% discount to the $321.23 per share closing price of Broadcom’s common stock on August 3, 2020, the day of this release. Broadcom is not associated in any way with TRC Capital, its mini-tender offer, or its mini-tender offer documents.
As required under Regulation 14e-2 of the Securities Exchange Act of 1934, Broadcom recommends against stockholders tendering their shares in response to TRC Capital’s offer.
Broadcom Inc. represents 401.00 million in outstanding shares, while the company has a total market value of $130.59 billion with the latest information. AVGO stock price has been found in the range of $325.80 to $331.58.
If compared to the average trading volume of 2.27M shares, AVGO reached a trading volume of 2223673 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Broadcom Inc. [AVGO]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for AVGO shares is $348.78 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on AVGO stock is a recommendation set at 2.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
Evercore ISI have made an estimate for Broadcom Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on June 26, 2020. While these analysts kept the previous recommendation, Mizuho raised their target price from $325 to $350. The new note on the price target was released on June 22, 2020, representing the official price target for Broadcom Inc. stock. Previously, the target price had yet another raise to $400, while Credit Suisse analysts kept a Outperform rating on AVGO stock. On June 09, 2020, analysts increased their price target for AVGO shares from 250 to 350.
The Average True Range (ATR) for Broadcom Inc. is set at 7.06, with the Price to Sales ratio for AVGO stock in the period of the last 12 months amounting to 5.70. The Price to Book ratio for the last quarter was 5.52, with the Price to Cash per share for the same quarter was set at 23.23. Price to Free Cash Flow for AVGO in the course of the last twelve months was 25.58 with Quick ratio for the last quarter at 2.00.
Trading performance analysis for AVGO stock
Broadcom Inc. [AVGO] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 6.70. With this latest performance, AVGO shares gained by 5.24% in over the last four-week period, additionally plugging by 3.83% over the last 6 months – not to mention a rise of 23.68% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for AVGO stock in for the last two-week period is set at 62.57, with the RSI for the last a single of trading hit 70.99, and the three-weeks RSI is set at 61.76 for Broadcom Inc. [AVGO]. The present Moving Average for the last 50 days of trading for this stock 310.66, while it was recorded at 321.60 for the last single week of trading, and 292.50 for the last 200 days.
Broadcom Inc. [AVGO]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Broadcom Inc. [AVGO] shares currently have an operating margin of +19.16 and a Gross Margin at +47.18. Broadcom Inc.’s Net Margin is presently recorded at +12.11.
Return on Total Capital for AVGO is now 8.50, given the latest momentum, and Return on Invested Capital for the company is 5.52. Return on Equity for this stock inclined to 10.60, with Return on Assets sitting at 4.65. When it comes to the capital structure of this company, Broadcom Inc. [AVGO] has a Total Debt to Total Equity ratio set at 131.35. Additionally, AVGO Total Debt to Total Capital is recorded at 56.78, with Total Debt to Total Assets ending up at 48.59. Long-Term Debt to Equity for the company is recorded at 120.33, with the Long-Term Debt to Total Capital now at 51.95.
Reflecting on the efficiency of the workforce at the company, Broadcom Inc. [AVGO] managed to generate an average of $144,000 per employee. Receivables Turnover for the company is 6.80 with a Total Asset Turnover recorded at a value of 0.38.Broadcom Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.00 and a Current Ratio set at 2.20.
Broadcom Inc. [AVGO]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, Broadcom Inc. posted 5.16/share EPS, while the average EPS was predicted by analysts to be reported at 5.13/share. When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 0.60%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for AVGO. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Broadcom Inc. go to 13.05%.
An analysis of insider ownership at Broadcom Inc. [AVGO]
There are presently around $109,252 million, or 84.00% of AVGO stock, in the hands of institutional investors. The top three institutional holders of AVGO stocks are: CAPITAL WORLD INVESTORS with ownership of 38,343,106, which is approximately -12.057% of the company’s market cap and around 0.20% of the total institutional ownership; CAPITAL INTERNATIONAL INVESTORS, holding 34,403,752 shares of the stock with an approximate value of $11.34 billion in AVGO stocks shares; and VANGUARD GROUP INC, currently with $10.98 billion in AVGO stock with ownership of nearly 2.353% of the company’s market capitalization.
Positions in Broadcom Inc. stocks held by institutional investors increased at the end of June and at the time of the June reporting period, where 729 institutional holders increased their position in Broadcom Inc. [NASDAQ:AVGO] by around 23,597,992 shares. Additionally, 631 investors decreased positions by around 25,112,164 shares, while 96 investors held positions by with 282,818,167 shares. The mentioned changes placed institutional holdings at 331,528,323 shares, according to the latest SEC report filing. AVGO stock had 148 new institutional investments in for a total of 3,009,497 shares, while 130 institutional investors sold positions of 1,463,167 shares during the same period.