Traders Purchase Large Volume of Broadcom Call Options (AVGO)

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Broadcom Inc (NASDAQ:AVGO) was the recipient of unusually large options trading on Tuesday. Traders acquired 205,073 call options on the stock. This represents an increase of approximately 2,083% compared to the typical volume of 9,395 call options.

NASDAQ:AVGO opened at $299.31 on Wednesday. The company has a market capitalization of $116.32 billion, a PE ratio of 15.90, a P/E/G ratio of 1.29 and a beta of 0.67. The company has a current ratio of 1.27, a quick ratio of 1.14 and a debt-to-equity ratio of 1.47. Broadcom has a 12-month low of $197.46 and a 12-month high of $300.98.

Broadcom (NASDAQ:AVGO) last released its earnings results on Thursday, March 14th. The semiconductor manufacturer reported $5.55 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $4.32 by $1.23. The business had revenue of $5.79 billion for the quarter, compared to analyst estimates of $5.83 billion. Broadcom had a return on equity of 30.31% and a net margin of 30.50%. The company’s revenue for the quarter was up 8.6% compared to the same quarter last year. During the same quarter in the previous year, the company posted $5.12 earnings per share. Equities analysts predict that Broadcom will post 17.71 earnings per share for the current year.

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, March 29th. Investors of record on Thursday, March 21st will be issued a dividend of $2.65 per share. This represents a $10.60 dividend on an annualized basis and a yield of 3.54%. The ex-dividend date is Wednesday, March 20th. Broadcom’s dividend payout ratio is presently 56.29%.

In related news, Director Donald Macleod sold 5,223 shares of the business’s stock in a transaction that occurred on Monday, January 7th. The stock was sold at an average price of $233.65, for a total transaction of $1,220,353.95. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Hock E. Tan sold 20,000 shares of the business’s stock in a transaction that occurred on Friday, March 15th. The stock was sold at an average price of $291.27, for a total value of $5,825,400.00. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 45,223 shares of company stock valued at $12,145,554. 3.30% of the stock is owned by company insiders.

A number of hedge funds have recently made changes to their positions in the stock. Belpointe Asset Management LLC grew its holdings in Broadcom by 274.9% during the fourth quarter. Belpointe Asset Management LLC now owns 3,254 shares of the semiconductor manufacturer’s stock worth $827,000 after acquiring an additional 2,386 shares during the period. Norges Bank acquired a new position in Broadcom during the fourth quarter worth $1,055,582,000. Foster Victor Wealth Advisors LLC acquired a new position in Broadcom during the fourth quarter worth $213,000. Teacher Retirement System of Texas grew its holdings in Broadcom by 50.0% during the fourth quarter. Teacher Retirement System of Texas now owns 99,904 shares of the semiconductor manufacturer’s stock worth $25,404,000 after acquiring an additional 33,299 shares during the period. Finally, Princeton Global Asset Management LLC acquired a new stake in Broadcom in the fourth quarter valued at $3,221,000. 85.76% of the stock is currently owned by hedge funds and other institutional investors.

Several research firms recently weighed in on AVGO. Zacks Investment Research cut Broadcom from a “hold” rating to a “sell” rating in a research note on Tuesday. SunTrust Banks boosted their price objective on Broadcom to $339.00 and gave the company a “buy” rating in a research note on Friday, March 15th. They noted that the move was a valuation call. Jefferies Financial Group boosted their price objective on Broadcom from $314.00 to $341.00 and gave the company a “buy” rating in a research note on Friday, March 15th. Citigroup started coverage on Broadcom in a research note on Friday, March 15th. They issued a “buy” rating for the company. Finally, BMO Capital Markets boosted their price objective on Broadcom from $250.00 to $270.00 and gave the company a “market perform” rating in a research note on Friday, March 15th. One analyst has rated the stock with a sell rating, ten have assigned a hold rating and thirty-one have given a buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and a consensus target price of $299.08.

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Broadcom Company Profile

Broadcom Inc designs, develops, and supplies a range of semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates through four segments: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial & Other.

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