Broadcom Limited (AVGO) Downgraded by Zacks Investment Research to Hold

Zacks Investment Research cut shares of Broadcom Limited (NASDAQ:AVGO) from a buy rating to a hold rating in a report issued on Thursday.

According to Zacks, “Broadcom has outperformed the industry on a year-to-date basis. The company is benefiting from synergies it gained from the merger with Avago, which will continue to drive profitability.  We note that seasonal strength in broadband access and sustained cloud data center spending is positive. The company's expanding portfolio is a key catalyst in the long haul. The company has received U.S. antitrust approval for the buyout of Brocade Communications Systems. The deal had already received approval in Europe and Japan. We believe that this acquisition will definitely boost Broadcom’s top line growth, as it solidifies footprint in the network storage devices market. Meanwhile, estimates have been stable lately ahead of the company's Q3 earnings release. The company has positive record of earnings surprises in recent quarters. However, customer concentration is a signficant headwind.”

A number of other analysts also recently weighed in on AVGO. UBS AG reaffirmed a buy rating and issued a $265.00 target price (up from $245.00) on shares of Broadcom Limited in a research report on Monday, June 5th. Vetr raised shares of Broadcom Limited from a hold rating to a buy rating and set a $258.25 target price on the stock in a research report on Monday. BidaskClub downgraded shares of Broadcom Limited from a strong-buy rating to a buy rating in a research report on Friday, August 11th. B. Riley reaffirmed a buy rating and issued a $305.00 target price on shares of Broadcom Limited in a research report on Sunday, June 4th. Finally, Cowen and Company reaffirmed a buy rating and issued a $260.00 target price on shares of Broadcom Limited in a research report on Friday, August 11th. Two analysts have rated the stock with a hold rating, thirty-six have given a buy rating and one has given a strong buy rating to the stock. Broadcom Limited has a consensus rating of Buy and an average price target of $263.22.

Shares of Broadcom Limited (NASDAQ:AVGO) traded up 1.41% during mid-day trading on Thursday, hitting $250.44. 1,422,744 shares of the stock were exchanged. The stock’s market capitalization is $101.83 billion. The stock’s 50-day moving average is $247.06 and its 200-day moving average is $230.12. Broadcom Limited has a 52 week low of $158.75 and a 52 week high of $258.49.

Broadcom Limited (NASDAQ:AVGO) last issued its quarterly earnings data on Thursday, June 1st. The semiconductor manufacturer reported $3.69 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $3.50 by $0.19. The business had revenue of $4.20 billion for the quarter, compared to the consensus estimate of $4.11 billion. Broadcom Limited had a negative net margin of 1.54% and a positive return on equity of 24.15%. The company’s quarterly revenue was up 17.9% compared to the same quarter last year. During the same period in the previous year, the firm earned $2.53 EPS. Analysts forecast that Broadcom Limited will post $15.78 earnings per share for the current fiscal year.

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In other Broadcom Limited news, SVP Bryan Ingram sold 10,000 shares of the firm’s stock in a transaction that occurred on Thursday, June 22nd. The shares were sold at an average price of $244.59, for a total transaction of $2,445,900.00. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Kirsten M. Spears sold 1,306 shares of the firm’s stock in a transaction that occurred on Thursday, June 8th. The stock was sold at an average price of $254.15, for a total transaction of $331,919.90. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 41,306 shares of company stock worth $10,380,120. 3.60% of the stock is owned by company insiders.

A number of large investors have recently made changes to their positions in the stock. Vanguard Group Inc. raised its stake in shares of Broadcom Limited by 3.0% in the second quarter. Vanguard Group Inc. now owns 27,561,770 shares of the semiconductor manufacturer’s stock worth $6,423,271,000 after buying an additional 793,335 shares during the period. BlackRock Inc. raised its stake in shares of Broadcom Limited by 3.5% in the second quarter. BlackRock Inc. now owns 23,930,917 shares of the semiconductor manufacturer’s stock worth $5,577,099,000 after buying an additional 798,982 shares during the period. State Street Corp raised its stake in shares of Broadcom Limited by 1.6% in the second quarter. State Street Corp now owns 16,060,697 shares of the semiconductor manufacturer’s stock worth $3,742,946,000 after buying an additional 255,044 shares during the period. Ameriprise Financial Inc. raised its stake in shares of Broadcom Limited by 18.2% in the second quarter. Ameriprise Financial Inc. now owns 8,704,177 shares of the semiconductor manufacturer’s stock worth $2,028,442,000 after buying an additional 1,338,695 shares during the period. Finally, Wellington Management Group LLP raised its stake in shares of Broadcom Limited by 29.3% in the first quarter. Wellington Management Group LLP now owns 6,710,760 shares of the semiconductor manufacturer’s stock worth $1,469,388,000 after buying an additional 1,519,598 shares during the period. 90.94% of the stock is owned by institutional investors and hedge funds.

About Broadcom Limited

Broadcom Limited is a designer, developer and global supplier of a range of semiconductor devices with a focus on digital and mixed signal complementary metal oxide semiconductor (CMOS)-based devices and analog III-V based products. The Company operates through four segments: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial & Other.

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