It’s an appealing income play to consider Broadcom Inc. (AVGO)

The price of Broadcom Inc. (NASDAQ: AVGO) closed at $632.46 in the last session, up 2.59% from day before closing price of $616.47. In other words, the price has increased by $+15.99 from its previous closing price. On the day, 2568066 shares were traded. AVGO stock price reached its highest trading level at $633.37 during the session, while it also had its lowest trading level at $618.52.

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We take a closer look at AVGO’s different ratios to gain a better understanding of the stock. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 21.11 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 27.62. For the most recent quarter (mrq), Quick Ratio is recorded 2.30 and its Current Ratio is at 2.50. In the meantime, Its Debt-to-Equity ratio is 1.69 whereas as Long-Term Debt/Eq ratio is at 1.64.

Upgrades & Downgrades

On February 28, 2023, Exane BNP Paribas started tracking the stock assigning a Outperform rating and target price of $660.

Truist reiterated its Buy rating for the stock on January 23, 2023, while the target price for the stock was revised from $662 to $659.

Insider Transactions:

An investor can also benefit from insider trades by learning what management is thinking about the future direction of stock prices. A recent insider transaction in this stock occurred on Dec 14 when FERNANDEZ RAUL J sold 1,170 shares for $575.00 per share. The transaction valued at 672,750 led to the insider holds 1,953 shares of the business.

DELLY GAYLA J sold 200 shares of AVGO for $115,912 on Dec 13. The Director now owns 3,264 shares after completing the transaction at $579.56 per share. On Dec 13, another insider, PAGE JUSTINE, who serves as the Director of the company, sold 170 shares for $574.86 each. As a result, the insider received 97,726 and left with 2,981 shares of the company.

Valuation Measures:

As of this moment, Broadcom’s Price-to-Earnings (P/E) ratio for their current fiscal year is 21.27, and their Forward P/E ratio for the next fiscal year is 14.33. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 2.26. For the stock, the TTM Price-to-Sale (P/S) ratio is 7.76 while its Price-to-Book (P/B) ratio in mrq is 11.34.

Stock Price History:

Over the past 52 weeks, AVGO has reached a high of $645.31, while it has fallen to a 52-week low of $415.07. The 50-Day Moving Average of the stock is 592.54, while the 200-Day Moving Average is calculated to be 530.62.

Shares Statistics:

According to the various share statistics, AVGO traded on average about 2.26M shares per day over the past 3-months and 2.5M shares per day over the past 10 days. A total of 418.00M shares are outstanding, with a floating share count of 414.94M. Insiders hold about 0.10% of the company’s shares, while institutions hold 80.70% stake in the company. Shares short for AVGO as of Jan 12, 2023 were 5.73M with a Short Ratio of 4.94M, compared to 5.58M on Dec 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 1.37% and a Short% of Float of 1.85%.

Dividends & Splits

The forward annual dividend rate for AVGO is 18.40, which was 13.70 in the trailing 12 months. Against a Trailing Annual Dividend Yield of 2.22%, it implies a Forward Annual Dividend Yield of 2.99%. The stock’s 5-year Average Dividend Yield is 3.12.

Earnings Estimates

The company has 21 analysts who recommend its stock at the moment. On average, analysts expect EPS of $10.12 for the current quarter, with a high estimate of $10.35 and a low estimate of $8.77, while EPS last year was $8.39. The consensus estimate for the next quarter is $9.75, with high estimates of $10.2 and low estimates of $8.91.

Analysts are recommending an EPS of between $43.81 and $37 for the fiscal current year, implying an average EPS of $40.64. EPS for the following year is $43.34, with 23 analysts recommending between $48.53 and $37.34.

Revenue Estimates

According to 19 analysts, the current quarter’s revenue is expected to be $8.9B. It ranges from a high estimate of $8.92B to a low estimate of $8.81B. As of the current estimate, Broadcom Inc.’s year-ago sales were $7.71B, an estimated increase of 15.40% from the year-ago figure. For the next quarter, 19 analysts are estimating revenue of $8.59B, an increase of 6.00% less than the figure of $15.40% in the same quarter last year. There is a high estimate of $9.01B for the next quarter, whereas the lowest estimate is $7.91B.

A total of 24 analysts have provided revenue estimates for AVGO’s current fiscal year. The highest revenue estimate was $37.09B, while the lowest revenue estimate was $32.45B, resulting in an average revenue estimate of $35.2B. In the same quarter a year ago, actual revenue was $33.2B, up 6.00% from the average estimate. Based on 22 analysts’ estimates, the company’s revenue will be $36.51B in the next fiscal year. The high estimate is $40.52B and the low estimate is $33.35B. The average revenue growth estimate for next year is up 3.70% from the average revenue estimate for this year.