AVGO stock: buy or sell?
February 25th, 2020
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.
|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?
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
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.
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 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 targetHow 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 ShareBroadcom 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.
|Quarter||Reporting date||Estimated EPS||Actual EPS||Surprise|
Annual financial resultsIn 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%.
|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 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.
|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 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:
|Market cap||$112.9 B|
|Total shares||399.5 M|
|Float shares||390.2 M|
|- Institutional holdings (%)||87.6%|
|- Insider holdings (%)||2.6%|
|Shares in short selling||0.0%|
|Tuesday, February 25th, 2020|
|Day range||$281.07 - $295.69|
|Average true range||$7.85|
|50d mov avg||$313.30|
|100d mov avg||$305.07|
|200d mov avg||$290.19|
Broadcom performanceStocks 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 :
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.
Latest AVGO stock news
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- Seeking AlphaBroadcom: Not What The Market WantsJuly 10, 2019