Broadcom Inc. is set to undergo a 10-for-1 stock split on July 12, following in the footsteps of other recent stock splits by companies like Nvidia Corporation and Chipotle Mexican Grill. This move is aimed at making Broadcom’s stock more accessible to a wider range of investors, as it currently trades at over $1,700 and has seen a 500% increase in value over the past five years. This growth is largely attributed to the increasing demand for artificial intelligence technology.
To prepare for the stock split, Broadcom recently issued $5 billion in bonds to refinance a portion of the loans used for its $69 billion acquisition of VMware Inc. This move highlights the company’s strong financial position and strategic planning.
Technical indicators for Broadcom’s stock are showing a bullish trend as the split date approaches. The stock’s current price of $1,712.19 is well above its 5-day, 20-day, and 50-day moving averages, indicating strong buying pressure. The Moving Average Convergence Divergence (MACD) indicator is at 68.27, suggesting continued bullish momentum, while the Relative Strength Index (RSI) is at 68.27, showing that the stock is nearing overbought territory but remains within a bullish range.
Bollinger Bands analysis also supports a positive outlook, with the stock’s current price falling within the upper bands. The 200-day moving average is at $1,197.38, indicating a positive long-term outlook for Broadcom’s stock.
Overall, Broadcom’s upcoming stock split, along with its strong technical indicators and strategic financial moves, position the company well for potential growth in the coming months. Investors are taking note of the stock’s affordability and future potential for further appreciation.
Article Source
https://www.benzinga.com/trading-ideas/technicals/24/07/39696514/broadcom-gears-up-for-stock-split-with-clear-bullish-indicators
