why Broadcom Inc. [AVGO] is a Good Choice for Investors After New Price Target of $528.50

Broadcom Inc. [NASDAQ: AVGO] surged by $0.96 during the normal trading session on Thursday and reaching a high of $471.08 during the day while it closed the day at $470.50. The company report on June 21, 2021 that Broadcom Inc. and Bernstein to Host Storage Teach-In.

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Broadcom Inc. (Nasdaq: AVGO), a global technology leader that designs, develops and supplies semiconductor and infrastructure software solutions, and Bernstein will host a webcast to showcase Broadcom’s storage franchises on Wednesday, July 21, 2021, at 9:00 a.m. PT / 12:00 p.m. ET.

Hock Tan, President and Chief Executive Officer, Jas Tremblay, Vice President and General Manager of Data Center Solutions, Jack Rondoni, Senior Vice President and General Manager of Brocade Storage Networking, and Dan Dolan, Senior Director of Marketing, HDD Storage, will present.

Broadcom Inc. stock has also loss -1.33% of its value over the past 7 days. However, AVGO stock has declined by -3.09% in the 3 months of the year. Over the past six months meanwhile, it has gained 10.59% and gained 7.46% year-on date.

The market cap for AVGO stock reached $193.63 billion, with 409.00 million shares outstanding and 400.42 million shares in the current float. Compared to the average trading volume of 1.80M shares, AVGO reached a trading volume of 1566843 in the most recent trading day, which is why market watchdogs consider the stock to be active.

Here’s what leading stock market gurus have to say 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 $528.50 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.

Cowen have made an estimate for Broadcom Inc. shares, keeping their opinion on the stock as Market Perform, with their previous recommendation back on March 02, 2021. While these analysts kept the previous recommendation, Cowen raised their target price from $350 to $415. The new note on the price target was released on December 11, 2020, representing the official price target for Broadcom Inc. stock. On September 04, 2020, analysts increased their price target for AVGO shares from 305 to 350.

The Average True Range (ATR) for Broadcom Inc. is set at 9.74, with the Price to Sales ratio for AVGO stock in the period of the last 12 months amounting to 7.58. The Price to Book ratio for the last quarter was 8.04, with the Price to Cash per share for the same quarter was set at 23.13. Price to Free Cash Flow for AVGO in the course of the last twelve months was 28.12 with Quick ratio for the last quarter at 2.10.

AVGO stock trade performance evaluation

Broadcom Inc. [AVGO] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -1.33. With this latest performance, AVGO shares gained by 1.50% in over the last four-week period, additionally plugging by 10.59% over the last 6 months – not to mention a rise of 47.23% 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 52.40, with the RSI for the last a single of trading hit 51.69, and the three-weeks RSI is set at 52.31 for Broadcom Inc. [AVGO]. The present Moving Average for the last 50 days of trading for this stock 459.97, while it was recorded at 470.23 for the last single week of trading, and 436.09 for the last 200 days.

Broadcom Inc. [AVGO]: An insightful look at the core fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Broadcom Inc. [AVGO] shares currently have an operating margin of +18.24 and a Gross Margin at +46.68. Broadcom Inc.’s Net Margin is presently recorded at +12.40.

Return on Total Capital for AVGO is now 7.06, given the latest momentum, and Return on Invested Capital for the company is 4.95. Return on Equity for this stock inclined to 12.12, with Return on Assets sitting at 4.13. When it comes to the capital structure of this company, Broadcom Inc. [AVGO] has a Total Debt to Total Equity ratio set at 174.42. Additionally, AVGO Total Debt to Total Capital is recorded at 63.56, with Total Debt to Total Assets ending up at 54.90. Long-Term Debt to Equity for the company is recorded at 170.74, with the Long-Term Debt to Total Capital now at 62.15.

Reflecting on the efficiency of the workforce at the company, Broadcom Inc. [AVGO] managed to generate an average of $141,000 per employee. Receivables Turnover for the company is 8.60 with a Total Asset Turnover recorded at a value of 0.33.Broadcom Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.10 and a Current Ratio set at 2.20.

Earnings per share (EPS) analysis for Broadcom Inc. [AVGO] stock

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 8.50%.

Broadcom Inc. [AVGO]: Insider Ownership positions

There are presently around $158,403 million, or 83.20% of AVGO stock, in the hands of institutional investors. The top three institutional holders of AVGO stocks are: CAPITAL WORLD INVESTORS with ownership of 39,049,787, which is approximately 0.421% of the company’s market cap and around 0.20% of the total institutional ownership; VANGUARD GROUP INC, holding 36,484,304 shares of the stock with an approximate value of $17.17 billion in AVGO stocks shares; and CAPITAL INTERNATIONAL INVESTORS, currently with $15.64 billion in AVGO stock with ownership of nearly 0.844% of the company’s market capitalization.

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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 908 institutional holders increased their position in Broadcom Inc. [NASDAQ:AVGO] by around 16,935,080 shares. Additionally, 681 investors decreased positions by around 12,119,630 shares, while 174 investors held positions by with 307,614,935 shares. The mentioned changes placed institutional holdings at 336,669,645 shares, according to the latest SEC report filing. AVGO stock had 160 new institutional investments in for a total of 1,555,679 shares, while 91 institutional investors sold positions of 738,856 shares during the same period.

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