Broadcom’s (NASDAQ:AVGO) director, Check Kian Low, bought 11,000 shares of the company at a weighted average price of $872.03 per share on September 6. The transaction value stood at $9.6 million. It would be reasonable to expect that Low is taking advantage of the recent dip in AVGO’s stock price.
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Shares of the company have declined about 7% since its fiscal third-quarter earnings release on August 31. While Broadcom reported better-than-expected results, its sales guidance was in line with estimates and hurt investor sentiment. Nonetheless, AVGO stock has rallied 57% year-to-date.
The recent progress in the Broadcom-VMware merger deal could be a factor in maintaining the insider’s confidence. In late August, U.K. regulators approved the deal, stating it would not negatively affect competition in the U.K.’s server hardware components supply market. This acquisition is expected to enhance Broadcom’s integration of cloud computing technologies.
Given the positive outlook of the insider, some potential favorable developments can be expected. In general, investors may find it valuable to monitor transactions by key insiders, as these transactions often mirror their confidence in the company’s future performance.
Overall, TipRanks’ Insider Trading Activity tool shows that the Insider Confidence Signal is currently Neutral on AVGO. Corporate insiders have bought AVGO stock worth $3.5 million in the last three months.
Interestingly, TipRanks offers daily insider transactions as well as a list of top corporate insiders. It also provides a list of hot stocks that boast either a Very Positive or Positive insider confidence signal.
What is the Price Target of AVGO?
On TipRanks, AVGO stock commands a Strong Buy consensus rating based on 16 Buys and two Holds. The average Broadcom stock price target of $975.56 implies 13.8% upside potential.
Investors looking for the most accurate and profitable analyst for Broadcom could follow Deutsche Bank analyst Ross Seymore. Copying the analyst’s trades on this stock and holding each position for one year could result in 93% of your transactions generating a profit, with an average return of 42.16% per trade.
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