Broadcom Inc. (NASDAQ:AVGO) Shares Bought by Allen Investment Management LLC

Key Points

• Allen Investment Management LLC increased its stake in Broadcom Inc. by 25.9%, acquiring an additional 60,551 shares, bringing its total holdings to $49.23 million as reported in its latest SEC filing.
• Broadcom's Director Henry Samueli sold 473,898 shares for approximately $125.74 million, reducing his ownership by 1.23%, while insiders have sold a total of 830,516 shares valued at over $217 million in the past three months.
• Analysts have increased their price targets, with UBS Group raising its target from $270 to $290 and Oppenheimer from $265 to $305, while the consensus rating is a strong "Buy."

Allen Investment Management LLC increased its position in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 25.9% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 294,018 shares of the semiconductor manufacturer's stock after buying an additional 60,551 shares during the quarter. Allen Investment Management LLC's holdings in Broadcom were worth $49,227,000 as of its most recent filing with the Securities and Exchange Commission.

Several other large investors have also made changes to their positions in the company. Barnes Dennig Private Wealth Management LLC purchased a new position in Broadcom in the first quarter valued at about $25,000. Inlight Wealth Management LLC purchased a new stake in shares of Broadcom during the first quarter worth about $26,000. Sunbeam Capital Management LLC purchased a new stake in shares of Broadcom during the fourth quarter worth about $28,000. Vermillion Wealth Management Inc. purchased a new stake in shares of Broadcom during the fourth quarter worth about $30,000. Finally, Wood Tarver Financial Group LLC increased its position in shares of Broadcom by 342.5% during the first quarter. Wood Tarver Financial Group LLC now owns 177 shares of the semiconductor manufacturer's stock worth $30,000 after acquiring an additional 137 shares during the last quarter. 76.43% of the stock is owned by hedge funds and other institutional investors.

Broadcom Trading Up 0.8%

Shares of AVGO traded up $2.35 during midday trading on Tuesday, hitting $296.65. The stock had a trading volume of 9,742,510 shares, compared to its average volume of 26,937,945. Broadcom Inc. has a 1 year low of $128.50 and a 1 year high of $302.19. The firm has a market cap of $1.40 trillion, a PE ratio of 111.20, a price-to-earnings-growth ratio of 2.06 and a beta of 1.12. The company has a debt-to-equity ratio of 0.89, a current ratio of 1.08 and a quick ratio of 0.98. The stock's 50 day moving average is $261.32 and its 200 day moving average is $222.57.

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

Broadcom Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Monday, June 30th. Investors of record on Friday, June 20th were paid a $0.59 dividend. This represents a $2.36 dividend on an annualized basis and a yield of 0.80%. The ex-dividend date was Friday, June 20th. Broadcom's dividend payout ratio (DPR) is presently 88.39%.

Broadcom declared that its Board of Directors has authorized a stock repurchase plan on Monday, April 7th that permits the company to buyback $10.00 billion in outstanding shares. This buyback authorization permits the semiconductor manufacturer to buy up to 1.4% of its shares through open market purchases. Shares buyback plans are generally an indication that the company's management believes its stock is undervalued.

Analyst Ratings Changes

Several research firms recently issued reports on AVGO. HSBC raised Broadcom from a "hold" rating to a "buy" rating and set a $400.00 price target on the stock in a research report on Tuesday, June 24th. Benchmark increased their price objective on Broadcom from $255.00 to $315.00 and gave the stock a "buy" rating in a report on Friday, June 6th. Hsbc Global Res upgraded Broadcom from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, June 24th. Truist Financial set a $295.00 price target on Broadcom and gave the company a "buy" rating in a report on Friday, June 6th. Finally, Wall Street Zen raised shares of Broadcom from a "hold" rating to a "buy" rating in a research note on Saturday, July 5th. One equities research analyst has rated the stock with a hold rating, twenty-seven have assigned a buy rating and two have assigned a strong buy rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Buy" and a consensus price target of $292.08.

Insider Buying and Selling

In other news, Director Henry Samueli sold 473,898 shares of Broadcom stock in a transaction that occurred on Wednesday, June 25th. The shares were sold at an average price of $265.33, for a total transaction of $125,739,356.34. Following the completion of the transaction, the director directly owned 38,188,575 shares of the company's stock, valued at $10,132,574,604.75. The trade was a 1.23% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Hock E. Tan sold 40,000 shares of Broadcom stock in a transaction that occurred on Thursday, June 26th. The shares were sold at an average price of $268.29, for a total transaction of $10,731,600.00. Following the transaction, the chief executive officer directly owned 482,836 shares of the company's stock, valued at approximately $129,540,070.44. This trade represents a 7.65% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 830,516 shares of company stock worth $217,224,641 over the last ninety days. Company insiders own 2.00% of the company's stock.

Broadcom 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.