AVGO stock: buy or sell?

AVGO stock price: $284.26 -2.20% At close on September 20th, 2019

Updated on:
September 20th, 2019

4

Shares of Broadcom closed today at $284.26 and dropped a fatal -2.20%.

Broadcom Limited 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.

Should I buy AVGO stock?

Even if you are a experienced or a novel trader, best trading results come from using an investing strategy that never leaves to random or subjective opinions when is the best moment to buy or sell stocks. Having a trading strategy helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

None of our preferred buy setups matches with Broadcom stock situation right now, hence this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This is not a selling recommendation at all, just it's not the best moment to buy if you follow any of these trading strategies.

Is Broadcom stock a buy?

Everyday, hundreds of stock ratings are published by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we gathered 15 ratings published for AVGO stock in the last month.

The general sentiment of these ratings is bullish for AVGO stock, with 9 positive ratings.
Is AVGO a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-13Wells Fargo & Con/aMarket Perform
2019-9-13Susquehanna Bancsharesn/aPositive
2019-9-13SunTrust BanksIn-LineBuy
2019-9-13SunTrust Banksn/aBuy
2019-9-13Morgan Stanleyn/aEqual Weight
2019-9-13MizuhoBuyIn-Line
2019-9-13Loop CapitalBuyHold
2019-9-13KeyCorpn/aOverweight
2019-9-13Jefferies Financial Groupn/aBuy
2019-9-13Bank of American/aBuy
2019-9-10Cascend Securitiesn/aBuy
2019-8-9KeyCorpn/aOverweight
2019-8-15Daiwa Capital MarketsBuyHold
2019-7-23Royal Bank of Canadan/aOutperform
2019-6-17Robert W. Bairdn/aOutperform

AVGO stock analysis

Daily outlook

Shares of Broadcom dropped a fatal -2.20% and closed at $284.26.

Broadcom dropped a fatal -2.20% and closed at $284.26. On Aug 16th AVGO price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock. In the last 8 days when SMA50d and SMA100d crossed up, AVGO price slipped $-13.75 per share (-4.61%). On May, AVGO hit a new all time high, pushing higher than tops. Check different trading setups that use ATHs as triggers.

AVGO stock chart (daily)

Weekly outlook

Broadcom depreciated a fateful -2.09% this week. Late July AVGO plummed a spooky -8.04% in just one week.

Since late August when AVGO stock price broke up the SMA40w line, it gained $12.13 (4.46%). Far behind is the all-time high Broadcom marked late April and since then the price is -11.20% below that top. Since late December 2018 when SMA20w and SMA40w crossed up, AVGO price gained $35.30 per share (14.18%).

AVGO stock chart (weekly)

AVGO stock price history

AVGO stock went public on August 6th, 2009 with a price of $13.971. Since then, AVGO stock grew a 1,934.80%, with an average of 193.50% per year. If you had invested $1,000 in AVGO stock in 2009, it would worth $19,348.00 today.

1: Adjusted price after possible price splits or reverse-splits.

AVGO stock historical price chart

AVGO stock reached all-time highs on May with a price of $320.13.

AVGO stock price target is $322.20

Nobody can reliably foresee how stock prices may evolve in the future. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. You should not follow the analysts' AVGO stock price predictions in the hope that they will be met as they may be wrong and not met. For the last month we found 13 price targets for AVGO stock:
AVGO stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-13Wells Fargo & CoRaises Target$290.00$300.003.4%
2019-9-13Susquehanna BancsharesRaises Target$315.00$345.009.5%
2019-9-13SunTrust BanksReiterates$307.00$322.004.9%
2019-9-13SunTrust BanksRaises Target$307.00$322.004.9%
2019-9-13Morgan StanleyRaises Target$250.00$265.006%
2019-9-13MizuhoReiterates$330.00$340.003%
2019-9-13KeyCorpRaises Target$330.00$340.003%
2019-9-13Jefferies Financial GroupReiterates$324.00$350.008%
2019-9-13Bank of AmericaReiteratesn/a$345.00-
2019-9-10Cascend SecuritiesRaises Target$300.00$330.0010%
2019-8-9KeyCorpRaises Target$310.00$330.006.5%
2019-7-23Royal Bank of CanadaInitiatesn/a$320.00-
2019-6-17Robert W. BairdLowers Target$300.00$280.00-6.7%
(in average)$305.70$322.205.0%
Moving in a range from $350.00 and $265.00, the price prediction for Broadcom stock is $322.20. In average, analysts' outlook on AVGO price target is positive, improving the target by a 5.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Broadcom presented beatiful results for 2019-Q1 on March. Broadcom gained Earnings per Share (EPS) by 9.70%, beating analysts consensus of $4.32. Broadcom posted $4.74.
AVGO earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a1.06n/a
2017-Q3-n/a1.15n/a
2017-Q42018-03-155.055.121.4%
2018-Q12018-03-154.414.716.8%
2018-Q22018-06-074.064.387.9%
2018-Q32018-09-064.194.384.5%
2018-Q42018-12-064.95.144.9%
2019-Q12019-03-144.324.749.7%
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

In 2018, Broadcom annual turnover rocketed a dazzling 18.21% to $20,848.00 million USD from $17,636.00 marked in 2017. When comparing 2018 vs 2017, in the same way, profit margin (that is, the net income divided by revenues) boosted a 49.21% to 58.80%.

Broadcom presents anual results in October, and to evaluate its evolution since then, we estimate annual sales and income figures by adding results from the last 4 quarters. This is called TTM (or Twelve Trailing Months). So, Broadcom TTM sales up to January 2019 were $21,310.00 and income $6,500.00 M USD. When comparing this TTM figures with the last reported annuality, we can review Broadcom business evolution since October 2018: Annual turnover up to January, compared to lastest yearly report, stepped up a tiny 2.22%. Regarding profit margin, Broadcom plunged -28.30% to 58.80%

AVGO annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$2,520 M-$552 M21.9%-
2014$4,270 M69.44%$309 M7.2%-44.02%
2014$4,269 M-0.02%$263 M6.2%-14.89%
2015$6,820 M59.76%$1,390 M20.4%428.52%
2015$6,824 M0.06%$1,364 M20.0%-1.87%
2016$13,240 M94.02%$-1,630.00 M-12.3%-219.50%
2016$13,240 M0.00%$-1,739.00 M-13.1%6.69%
2017$17,640 M33.23%$1,700 M9.6%-197.76%
2017$17,636 M-0.02%$1,692 M9.6%-0.47%
2018$20,848 M18.21%$12,259 M58.8%624.53%
TTM $21,310 M2.22%$6,500 M30.5%-46.98%

Quarterly financial results

Broadcom posted $5,789.00 M in sales for 2019-Q1, a 6.34% up compared to previous quarter. Reported quarter income marked $471.00 M with a profit margin of 8.14%. Profit margin plunged a -12.35% compared to previous quarter when profit margin was 20.48%. When comparing revenues to same quarter last year, Broadcom sales marked a more than good increase and rose a 8.67%. Looking back to recent quarterly results, Broadcom posted 3 negative quarters in a row.
AVGO quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$4,190 M-$444 M10.6%-
2017-Q3$4,460 M6.44%$483 M10.8%8.78%
2017-Q4$4,844 M8.61%$532 M11.0%10.14%
2018-Q1$5,327 M9.97%$6,230 M117.0%1,071.05%
2018-Q2$5,014 M-5.88%$3,718 M74.2%-40.32%
2018-Q3$5,063 M0.98%$1,196 M23.6%-67.83%
2018-Q4$5,444 M7.53%$1,115 M20.5%-6.77%
2019-Q1$5,789 M6.34%$471 M8.1%-57.76%

Broadcom ownership

When you are planning to buy a company, it's worth to review its ownership structure.

Broadcom shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 2.59% of all shares.

Bearish positions for AVGO stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Broadcom:

AVGO
Market cap$113.2 B
Total shares398.1 M
Float shares390.3 M
  - Institutional holdings (%)88.3%
  - Insider holdings (%)2.6%
Shares in short selling0.0%

AVGO summary

Friday, September 20th, 2019
Open$287.67
Close$284.26
Day range$281.82 - $288.40
Previous close$290.64
Session gain-2.20%
Average true range$7.61
50d mov avg$285.23
100d mov avg$282.56
200d mov avg$276.49
Daily patternlt01a
Weekly pattern

Broadcom performance

To measure stock performance is always good to benchmark with competitors or related stocks. We compared Broadcom against in the following table:
Stock3m6m12m
AVGOBroadcom3.75%-1.94%17.94%

Broadcom competitors

Unfortunately, we could not find any public company that could be defined as Broadcom competitor. This doesn't mean Broadcom does not have any competitor in the market, it's just we could not detected it.

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