TD Cowen has recently reiterated Broadcom Inc (AVGO) stock to Buy rating, as announced on December 13, 2024, according to Finviz. Earlier, on October 14, 2024, Mizuho had reiterated the stock to Outperform, setting a price target of $220 for AVGO stock. William Blair also initiated Outperform rating. Additionally, TD Cowen reiterated Buy rating on July 16, 2024, with a target price of $210. Rosenblatt analysts, in their report published on July 11, 2024, also reiterated Buy rating and set a price target of $1650 for Broadcom Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
Broadcom Inc (AVGO) Stock Trading Recap
On Thursday, Broadcom Inc (AVGO) stock saw a decline, ending the day at $235.8 which represents a decrease of $-0.55 or -0.23% from the prior close of $236.35. The stock opened at $236.06 and touched a low of $230.73 during the day, reaching a high of $236.95. The volume of shares traded was 20.91 million falling short of the average volume of 32.73 million.
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AVGO Stock Performance and Moving Averages
In recent trading, Broadcom Inc (AVGO) stock price has shown some volatility, fluctuating 1.92% over the last five trades and 4.94% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 51.00%, and it has gained 31.80% in the previous three months. Currently, AVGO is trading at 3.50%, 7.26%, and 35.03% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, AVGO, a Technology sector stock, is trading -6.38% below its 52-week high but remains 96.90% above its 52-week low. The Average True Range (ATR) (14 days) of 10.22 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Broadcom Inc’s Profitability and Valuation Ratios
Broadcom Inc’s profitability metrics reveal financial health. The company currently boasts an operating margin of 29.74% and a profit margin of 11.43%, with a gross margin of 51.00%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Broadcom Inc’s market capitalization stands at $1105.28 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 193.42, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 30.87. Additionally, the Price-to-Sales Ratio is 21.43, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 16.33, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 2.41% of Broadcom Inc (AVGO)’s shares, while financial institutions hold 77.32%.
Notable insider trades include HARTENSTEIN EDDY W, Director at Broadcom Inc (AVGO), who sold 4000 shares on Jan 08 ’25, at $229.64 each, totaling $0.92 million. On Jan 06 ’25, Low Check Kian, Director, sold 48000 shares for $235.35 each, amounting to $11.30 million. Additionally, on Jan 02 ’25, Kawwas Charlie B sold 40000 shares at $231.98 each, generating $9.28 million.
