Broadcom Inc. [AVGO] moved down -0.93: Why It’s Important



Broadcom Inc. [NASDAQ: AVGO] closed the trading session at $637.03 on 01/06/22. The day’s price range saw the stock hit a low of $634.43, while the highest price level was $648.65. The company report on December 9, 2021 that Broadcom Inc. Announces $10 Billion Share Repurchase Authorization.

Broadcom Inc. (Nasdaq: AVGO), a global technology leader that designs, develops and supplies semiconductor and infrastructure software solutions, today announced its Board of Directors has authorized the repurchase of up to $10 billion of its common stock under a new share repurchase program. The authorization is effective until December 31, 2022.

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“The initiation of a new share repurchase program reflects the confidence of the Board of Directors in Broadcom’s strong cash flow generation and provides us with a complementary tool to deliver value to our stockholders,” said Kirsten Spears, CFO of Broadcom Inc.

The stocks have a year to date performance of -4.27 percent and weekly performance of -4.22 percent. The stock has been moved at 32.66 percent over the last six months. The stock has performed 7.90 percent around the most recent 30 days and changed 28.97 percent over the most recent 3-months.

If compared to the average trading volume of 2.05M shares, AVGO reached to a volume of 2752739 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 $669.77 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.

Piper Sandler have made an estimate for Broadcom Inc. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on January 03, 2022. While these analysts kept the previous recommendation, Wells Fargo raised their target price from $565 to $635. The new note on the price target was released on December 10, 2021, representing the official price target for Broadcom Inc. stock. Previously, the target price had yet another raise from $660 to $665, while UBS kept a Buy rating on AVGO stock. On December 10, 2021, analysts increased their price target for AVGO shares from 564 to 659.

The Average True Range (ATR) for Broadcom Inc. is set at 16.92, with the Price to Sales ratio for AVGO stock in the period of the last 12 months amounting to 9.58. The Price to Book ratio for the last quarter was 10.54, with the Price to Cash per share for the same quarter was set at 29.47. Price to Free Cash Flow for AVGO in the course of the last twelve months was 36.98 with Quick ratio for the last quarter at 2.40.

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 -4.22. With this latest performance, AVGO shares gained by 7.90% in over the last four-week period, additionally plugging by 32.66% over the last 6 months – not to mention a rise of 43.67% 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 52.96, with the RSI for the last a single of trading hit 44.79, and the three-weeks RSI is set at 56.89 for Broadcom Inc. [AVGO]. The present Moving Average for the last 50 days of trading for this stock 591.83, while it was recorded at 655.94 for the last single week of trading, and 506.20 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 +31.64 and a Gross Margin at +54.23. Broadcom Inc.’s Net Margin is presently recorded at +24.54.

Return on Equity for this stock inclined to 27.56, with Return on Assets sitting at 8.89.

Broadcom Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 2.40 and a Current Ratio set at 2.60.

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 14.74%.

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Broadcom Inc. [AVGO]: Insider Ownership positions

There are presently around $211,803 million, or 82.00% of AVGO stock, in the hands of institutional investors. The top three institutional holders of AVGO stocks are: CAPITAL WORLD INVESTORS with ownership of 38,630,429, which is approximately -1.877% of the company’s market cap and around 0.10% of the total institutional ownership; VANGUARD GROUP INC, holding 36,041,222 shares of the stock with an approximate value of $23.17 billion in AVGO stocks shares; and CAPITAL INTERNATIONAL INVESTORS, currently with $22.0 billion in AVGO stock with ownership of nearly 0.802% of the company’s market capitalization.

Positions in Broadcom Inc. stocks held by institutional investors increased at the end of December and at the time of the December reporting period, where 958 institutional holders increased their position in Broadcom Inc. [NASDAQ:AVGO] by around 8,713,508 shares. Additionally, 647 investors decreased positions by around 9,513,229 shares, while 215 investors held positions by with 311,171,909 shares. The mentioned changes placed institutional holdings at 329,398,646 shares, according to the latest SEC report filing. AVGO stock had 119 new institutional investments in for a total of 1,124,808 shares, while 81 institutional investors sold positions of 955,317 shares during the same period.