Headlands Technologies LLC Makes New Investment in Broadcom Inc. (NASDAQ:AVGO)

Key Points

• Headlands Technologies LLC purchased 57,336 shares of Broadcom Inc. valued at approximately $9.6 million, making it the firm's 14th largest position.
• Broadcom reported strong quarterly earnings, with an earnings per share of $1.58 and revenues of $15 billion, exceeding analysts' expectations.
• Insiders sold a total of 830,516 shares over the last ninety days, representing a significant decrease in their ownership of the stock.

Headlands Technologies LLC purchased a new stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) in the first quarter, according to the company in its most recent filing with the SEC. The fund purchased 57,336 shares of the semiconductor manufacturer's stock, valued at approximately $9,600,000. Broadcom comprises 1.1% of Headlands Technologies LLC's investment portfolio, making the stock its 14th largest position.

Other hedge funds have also recently modified their holdings of the company. Sunbeam Capital Management LLC bought a new position in shares of Broadcom during the 4th quarter worth approximately $28,000. Vermillion Wealth Management Inc. bought a new position in shares of Broadcom during the 4th quarter worth approximately $30,000. Barnes Dennig Private Wealth Management LLC bought a new position in shares of Broadcom during the 1st quarter worth approximately $25,000. Cheviot Value Management LLC bought a new position in shares of Broadcom during the 1st quarter worth approximately $25,000. Finally, Inlight Wealth Management LLC bought a new position in shares of Broadcom during the 1st quarter worth approximately $26,000. Institutional investors own 76.43% of the company's stock.

Insider Activity

In related news, insider Charlie B. Kawwas sold 10,000 shares of the company's stock in a transaction on Wednesday, June 11th. The shares were sold at an average price of $252.88, for a total value of $2,528,800.00. Following the completion of the transaction, the insider directly owned 789,784 shares in the company, valued at approximately $199,720,577.92. The trade was a 1.25% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Mark David Brazeal sold 50,000 shares of the company's stock in a transaction on Monday, June 23rd. The stock was sold at an average price of $253.28, for a total transaction of $12,664,000.00. Following the completion of the transaction, the insider owned 415,956 shares of the company's stock, valued at $105,353,335.68. This trade represents a 10.73% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 830,516 shares of company stock worth $217,224,641. Company insiders own 2.00% of the company's stock.

Wall Street Analysts Forecast Growth

Several research firms have commented on AVGO. Benchmark lifted their target price on shares of Broadcom from $255.00 to $315.00 and gave the stock a "buy" rating in a research report on Friday, June 6th. Truist Financial set a $295.00 price target on shares of Broadcom and gave the stock a "buy" rating in a report on Friday, June 6th. Arete Research raised shares of Broadcom to a "strong-buy" rating in a report on Monday, July 28th. Wells Fargo & Company lifted their price target on shares of Broadcom from $230.00 to $255.00 and gave the stock an "equal weight" rating in a report on Friday, June 6th. Finally, Rosenblatt Securities lifted their price target on shares of Broadcom from $223.00 to $340.00 and gave the stock a "buy" rating in a report on Friday, June 6th. Two investment analysts have rated the stock with a hold rating, twenty-six have assigned a buy rating and three have assigned a strong buy rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Buy" and a consensus price target of $294.92.

Broadcom Price Performance

Shares of AVGO traded up $1.21 during mid-day trading on Friday, reaching $304.97. 12,439,353 shares of the stock traded hands, compared to its average volume of 17,052,154. The firm has a fifty day moving average price of $272.87 and a 200 day moving average price of $226.82. The company has a market cap of $1.43 trillion, a price-to-earnings ratio of 114.22, a price-to-earnings-growth ratio of 2.16 and a beta of 1.15. The company has a current ratio of 1.08, a quick ratio of 0.98 and a debt-to-equity ratio of 0.89. Broadcom Inc. has a 1 year low of $134.90 and a 1 year high of $310.34.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings results on Thursday, June 5th. The semiconductor manufacturer reported $1.58 EPS for the quarter, beating analysts' consensus estimates of $1.57 by $0.01. The firm had revenue of $15 billion during the quarter, compared to analyst estimates of $14.98 billion. Broadcom had a net margin of 22.64% and a return on equity of 35.49%. The business's revenue for the quarter was up 20.2% on a year-over-year basis. During the same period in the previous year, the business earned $10.96 EPS. As a group, equities research analysts predict that Broadcom Inc. will post 5.38 earnings per share for the current year.

Broadcom Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, June 30th. Stockholders of record on Friday, June 20th were given a dividend of $0.59 per share. This represents a $2.36 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date was Friday, June 20th. Broadcom's payout ratio is 88.39%.

Broadcom Company Profile

Broadcom Inc designs, develops, and supplies various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates in two segments, Semiconductor Solutions and Infrastructure Software.