Broadcom Inc. [NASDAQ: AVGO] stock went on a downward path that fall over -3.40% on Thursday, amounting to a one-week price decrease of less than -5.75%. The company report on September 22, 2022 that Broadcom Inc. Announces Conversion Date for Mandatory Convertible Preferred Stock, Series A.
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Broadcom Inc. (NASDAQ: AVGO) announced today that its 8.00% Mandatory Convertible Preferred Stock, Series A (the “Preferred Stock”), is expected to automatically convert into shares of the Company’s Common Stock on September 30, 2022 (the “Conversion Date”) in accordance with Broadcom Inc.’s Certificate of Designations of 8.00% Mandatory Convertible Preferred Stock, Series A, dated as of September 30, 2019 (the “Certificate of Designations”). The current adjusted Minimum Conversion Rate (as defined in the Certificate of Designations) for each share of Preferred Stock is 3.1149 shares of the Company’s Common Stock and the current adjusted Maximum Conversion Rate (as defined in the Certificate of Designations) for each share of Preferred Stock is 3.6407 shares of the Company’s Common Stock. Cash will be paid in lieu of fractional shares of Common Stock.
As previously announced, on September 30, 2022, the holders of record of Broadcom’s Preferred Stock at the close of business on September 15, 2022, will separately receive a final quarterly cash dividend of $20.00 per share on the Preferred Stock.
Over the last 12 months, AVGO stock dropped by -8.04%. The one-year Broadcom Inc. stock forecast points to a potential upside of 31.09. The average equity rating for AVGO stock is currently 1.90, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $185.78 billion, with 405.00 million shares outstanding and 395.43 million shares in the current float. Compared to the average trading volume of 2.08M shares, AVGO stock reached a trading volume of 3994542 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Guru’s Opinion on 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 $653.17 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 1.90. 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.
UBS have made an estimate for Broadcom Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on March 04, 2022. While these analysts kept the previous recommendation, Truist raised their target price from $659 to $686. The new note on the price target was released on March 04, 2022, representing the official price target for Broadcom Inc. stock. Previously, the target price had yet another raise from $750 to $775, while Rosenblatt kept a Buy rating on AVGO stock. On March 04, 2022, analysts decreased their price target for AVGO shares from 723 to 703.
The Average True Range (ATR) for Broadcom Inc. is set at 14.90, with the Price to Sales ratio for AVGO stock in the period of the last 12 months amounting to 5.86. The Price to Book ratio for the last quarter was 8.73, with the Price to Cash per share for the same quarter was set at 24.17. Price to Free Cash Flow for AVGO in the course of the last twelve months was 21.87 with Quick ratio for the last quarter at 2.00.
AVGO Stock Performance Analysis:
Broadcom Inc. [AVGO] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -5.75. With this latest performance, AVGO shares dropped by -11.11% in over the last four-week period, additionally sinking by -28.67% over the last 6 months – not to mention a drop of -8.04% 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 28.71, with the RSI for the last a single of trading hit 22.03, and the three-weeks RSI is set at 33.43 for Broadcom Inc. [AVGO]. The present Moving Average for the last 50 days of trading for this stock 517.62, while it was recorded at 462.36 for the last single week of trading, and 561.72 for the last 200 days.
Insight into Broadcom Inc. 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 2.00 and a Current Ratio set at 2.30.
AVGO Stock EPS
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 15.20%.
Broadcom Inc. [AVGO] Insider Position Details
There are presently around $146,718 million, or 82.00% of AVGO stock, in the hands of institutional investors. The top three institutional holders of AVGO stocks are: VANGUARD GROUP INC with ownership of 37,442,478, which is approximately 1.262% of the company’s market cap and around 2.36% of the total institutional ownership; CAPITAL WORLD INVESTORS, holding 31,626,973 shares of the stock with an approximate value of $14.24 billion in AVGO stocks shares; and BLACKROCK INC., currently with $13.22 billion in AVGO stock with ownership of nearly 2.782% of the company’s market capitalization.
Positions in Broadcom Inc. stocks held by institutional investors increased at the end of September and at the time of the September reporting period, where 1,058 institutional holders increased their position in Broadcom Inc. [NASDAQ:AVGO] by around 12,031,465 shares. Additionally, 909 investors decreased positions by around 14,763,537 shares, while 221 investors held positions by with 299,151,598 shares. The mentioned changes placed institutional holdings at 325,946,600 shares, according to the latest SEC report filing. AVGO stock had 138 new institutional investments in for a total of 2,316,980 shares, while 162 institutional investors sold positions of 1,619,629 shares during the same period.