AVGO stock: buy or sell?
September 20th, 2019
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.
|New all-time high||No|
|New 52 week high||No|
|Price crossing up 200d MA||No|
|100d MA crossing up 200d MA||No|
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.
|Date||Analyst / Broker||Previous rating||Current rating|
|2019-9-13||Wells Fargo & Co||n/a||Market Perform|
|2019-9-13||Morgan Stanley||n/a||Equal Weight|
|2019-9-13||Jefferies Financial Group||n/a||Buy|
|2019-9-13||Bank of America||n/a||Buy|
|2019-8-15||Daiwa Capital Markets||Buy||Hold|
|2019-7-23||Royal Bank of Canada||n/a||Outperform|
|2019-6-17||Robert W. Baird||n/a||Outperform|
AVGO stock analysis
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.
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 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 $322.20Nobody 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:
|Date||Analyst / Broker||Action||Previous target||Current target||Diff|
|2019-9-13||Wells Fargo & Co||Raises Target||$290.00||$300.00||3.4%|
|2019-9-13||Susquehanna Bancshares||Raises Target||$315.00||$345.00||9.5%|
|2019-9-13||SunTrust Banks||Raises Target||$307.00||$322.00||4.9%|
|2019-9-13||Morgan Stanley||Raises Target||$250.00||$265.00||6%|
|2019-9-13||Jefferies Financial Group||Reiterates||$324.00||$350.00||8%|
|2019-9-13||Bank of America||Reiterates||n/a||$345.00||-|
|2019-9-10||Cascend Securities||Raises Target||$300.00||$330.00||10%|
|2019-7-23||Royal Bank of Canada||Initiates||n/a||$320.00||-|
|2019-6-17||Robert W. Baird||Lowers Target||$300.00||$280.00||-6.7%|
Financials and fundamental analysis
Earnings date and Earnings per ShareBroadcom 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.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 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%
|2013||$2,520 M||-||$552 M21.9%||-|
|2014||$4,270 M||69.44%||$309 M7.2%||-44.02%|
|2014||$4,269 M||-0.02%||$263 M6.2%||-14.89%|
|2015||$6,820 M||59.76%||$1,390 M20.4%||428.52%|
|2015||$6,824 M||0.06%||$1,364 M20.0%||-1.87%|
|2016||$13,240 M||94.02%||$-1,630.00 M-12.3%||-219.50%|
|2016||$13,240 M||0.00%||$-1,739.00 M-13.1%||6.69%|
|2017||$17,640 M||33.23%||$1,700 M9.6%||-197.76%|
|2017||$17,636 M||-0.02%||$1,692 M9.6%||-0.47%|
|2018||$20,848 M||18.21%||$12,259 M58.8%||624.53%|
|TTM||$21,310 M||2.22%||$6,500 M30.5%||-46.98%|
Quarterly financial resultsBroadcom 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.
|2017-Q2||$4,190 M||-||$444 M10.6%||-|
|2017-Q3||$4,460 M||6.44%||$483 M10.8%||8.78%|
|2017-Q4||$4,844 M||8.61%||$532 M11.0%||10.14%|
|2018-Q1||$5,327 M||9.97%||$6,230 M117.0%||1,071.05%|
|2018-Q2||$5,014 M||-5.88%||$3,718 M74.2%||-40.32%|
|2018-Q3||$5,063 M||0.98%||$1,196 M23.6%||-67.83%|
|2018-Q4||$5,444 M||7.53%||$1,115 M20.5%||-6.77%|
|2019-Q1||$5,789 M||6.34%||$471 M8.1%||-57.76%|
Broadcom ownershipWhen 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:
|Market cap||$113.2 B|
|Total shares||398.1 M|
|Float shares||390.3 M|
|- Institutional holdings (%)||88.3%|
|- Insider holdings (%)||2.6%|
|Shares in short selling||0.0%|
|Friday, September 20th, 2019|
|Day range||$281.82 - $288.40|
|Average true range||$7.61|
|50d mov avg||$285.23|
|100d mov avg||$282.56|
|200d mov avg||$276.49|
Broadcom performanceTo measure stock performance is always good to benchmark with competitors or related stocks. We compared Broadcom against in the following table:
Broadcom competitorsUnfortunately, 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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