The stock price of Broadcom Inc (NASDAQ: AVGO) has plunged by -1.49 when compared to previous closing price of 1351.58, but the company has seen a 7.55% gain in its stock price over the last five trading sessions. InvestorPlace reported 2024-03-25 that Many corporations are investing heavily in artificial intelligence ( AI ). The technology is helping people become more productive and access more information.
Is It Worth Investing in Broadcom Inc (NASDAQ: AVGO) Right Now?
Broadcom Inc (NASDAQ: AVGO) has a higher price-to-earnings ratio of 49.36x compared to its average ratio. AVGO has 36-month beta value of 1.27. Analysts have mixed views on the stock, with 17 analysts rating it as a “buy,” 10 as “overweight,” 2 as “hold,” and 0 as “sell.”
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The public float for AVGO is 453.88M, and currently, short sellers hold a 1.16% ratio of that float. The average trading volume of AVGO on March 27, 2024 was 3.06M shares.
AVGO’s Market Performance
The stock of Broadcom Inc (AVGO) has seen a 7.55% increase in the past week, with a 1.71% rise in the past month, and a 18.67% gain in the past quarter. The volatility ratio for the week is 3.84%, and the volatility levels for the past 30 days are at 3.55% for AVGO. The simple moving average for the last 20 days is 1.48% for AVGO stock, with a simple moving average of 33.52% for the last 200 days.
Analysts’ Opinion of AVGO
Many brokerage firms have already submitted their reports for AVGO stocks, with TD Cowen repeating the rating for AVGO by listing it as a “Outperform.” The predicted price for AVGO in the upcoming period, according to TD Cowen is $1500 based on the research report published on March 21, 2024 of the current year 2024.
Barclays, on the other hand, stated in their research note that they expect to see AVGO reach a price target of $1405. The rating they have provided for AVGO stocks is “Overweight” according to the report published on March 20th, 2024.
TD Cowen gave a rating of “Market Perform” to AVGO, setting the target price at $1400 in the report published on March 08th of the current year.
AVGO Trading at 5.64% from the 50-Day Moving Average
After a stumble in the market that brought AVGO to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -7.42% of loss for the given period.
Volatility was left at 3.55%, however, over the last 30 days, the volatility rate increased by 3.84%, as shares surge +2.72% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +20.21% upper at present.
During the last 5 trading sessions, AVGO rose by +7.55%, which changed the moving average for the period of 200-days by +65.57% in comparison to the 20-day moving average, which settled at $1,313.81. In addition, Broadcom Inc saw 19.28% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at AVGO starting from Hao Kenneth, who sale 9,160 shares at the price of $1388.13 back on Mar 21 ’24. After this action, Hao Kenneth now owns 0 shares of Broadcom Inc, valued at $12,715,311 using the latest closing price.
HARTENSTEIN EDDY W, the Director of Broadcom Inc, sale 3,150 shares at $1290.34 during a trade that took place back on Mar 12 ’24, which means that HARTENSTEIN EDDY W is holding 4,643 shares at $4,064,583 based on the most recent closing price.
Stock Fundamentals for AVGO
Current profitability levels for the company are sitting at:
- 0.38 for the present operating margin
- 0.65 for the gross margin
The net margin for Broadcom Inc stands at 0.3. The total capital return value is set at 0.09. Equity return is now at value 24.75, with 9.23 for asset returns.
Based on Broadcom Inc (AVGO), the company’s capital structure generated 0.52 points at debt to capital in total, while cash flow to debt ratio is standing at 0.25. The debt to equity ratio resting at 1.08. The interest coverage ratio of the stock is 6.96.
Currently, EBITDA for the company is 20.8 billion with net debt to EBITDA at 3.1. When we switch over and look at the enterprise to sales, we see a ratio of 17.52. The receivables turnover for the company is 7.82for trailing twelve months and the total asset turnover is 0.22. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.33.
Conclusion
To put it simply, Broadcom Inc (AVGO) has had a better performance in recent times. Analysts have a mixed opinion on the stock, with some rating it as a “buy” and others as a “hold”. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
