AVGO stock: buy or sell?

AVGO stock price: $282.68 -3.06% At close on February 25th, 2020

Updated on:
February 25th, 2020

2

Broadcom fell a terrible -3.06% and closed at $282.68. With Tuesday it's been 4 sliding days in a row, loosing $-33.01 (-10.62%).

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. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best time to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

Currently, Broadcom stock doesn't match any of these trading strategies, so our recommendation is not to buy.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean AVGO will fall in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Broadcom stock a buy?

Financial institutions and banks post stock ratings everyday. Unfortunately, we couldn't detect any rating for AVGO stock for the last month.

AVGO stock analysis

Daily outlook

Broadcom fell a terrible -3.06% and closed at $282.68.

Shares of Broadcom fell a terrible -3.06% and closed at $282.68. In this session, Broadcom stock crossed down the SMA200d line. If you are using SMA200d line as stop loss trigger, double check your position in this stock. On Jan/24, AVGO hit new all time highs, pushing higher previous ATH of $327.88 recorded on December. New ATHs are usual entry points for many trading setups as there aren't higher resistences.

AVGO stock chart (daily)

Weekly outlook

Shares of Broadcom plummed a spooky -7.17% this week.

Broadcom is sliding further to find new supports after falling under the support. Not so far away is the last all-time high Broadcom marked late January. This week, Broadcom stock dived below the significant level of the 40-weeks moving average. Stocks under the 40w moving average line are usually not recommended for average traders.

AVGO stock chart (weekly)

AVGO stock price history

AVGO stock went public on August 6th, 2009 with a price of $13.701. Since then, AVGO stock surged a 1,963.40%, with an average of 196.30% per year. If you had invested right after AVGO's IPO a $1,000 in AVGO stock in 2009, it would worth $19,634.00 today.

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

AVGO stock historical price chart

AVGO stock reached all-time highs on Jan 24th with a price of $331.58.

AVGO stock price target

How much a stock will be priced tomorrow or next week is quite unpredictable However, many stock price predictions are published every day by banks, financial institutions and independent analysts. 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 have not found any price prediction for Broadcom stock by any trusted analyst.

Financials and fundamental analysis

Earnings date and Earnings per Share

Broadcom presented beatiful results for 2019-Q1 on March. Broadcom appreciated Earnings per Share (EPS) by 9.70%, beating experts estimates 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 revenues climbed an exceptional 18.21% to $20,848.00 million dollars from $17,636.00 marked in 2017. When comparing 2018 vs 2017, similarly, profit margin (that is, the net income divided by revenues) skyrocketed a 49.21% to 58.80%.

To have an up to date view of the financial situation of Broadcom, we have calculated the trailing twelve month (TTM) sales and income figures. TTM values are the sum of the last 4 quarters and aproximate to an annual fiscal report ending in 2019-Q1 that can be compared to 2018 fiscal year results. Annual Broadcom TTM sales up to January 2019 were $21,310.00 and earnings were $6,500.00 M USD. If we compare this TTM figures with the last reported annuality, we can esteem Broadcom business evolution since October 2018: Annual sales up to January, compared to lastest yearly report, grew a slightly fine 2.22%. Nonetheless, profit margin (net income/sales) plunged at 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 million in revenues for 2019-Q1, a 6.34% improvement compared to previous quarter. Reported quarter income marked $471.00 million 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 sales to same quarter last year, Broadcom sales marked a pretty good increase and jumped 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 invest in a stock, it's always 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 2.57% of all shares.

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

For a better context understanding, the following table shows ownership data compared to other related companies:

AVGO
Market cap$112.9 B
Total shares399.5 M
Float shares390.2 M
  - Institutional holdings (%)87.6%
  - Insider holdings (%)2.6%
Shares in short selling0.0%

AVGO summary

Tuesday, February 25th, 2020
Open$294.11
Close$282.68
Day range$281.07 - $295.69
Previous close$291.60
Session gain-3.06%
Average true range$7.85
50d mov avg$313.30
100d mov avg$305.07
200d mov avg$290.19
Daily patternlt06c
Weekly pattern lt01c

Broadcom performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. In the following table, we compare Broadcom to :
Stock3m6m12m
AVGOBroadcom-9.70%1.96%7.62%

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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