Baader Bank Aktiengesellschaft Grows Stock Position in Broadcom Inc. (NASDAQ:AVGO)

Key Points

• Baader Bank Aktiengesellschaft increased its stake in Broadcom Inc. by 25.5%, acquiring an additional 3,908 shares valued at approximately $3.23 million.
• Broadcom recently declared a $10 billion stock buyback program, indicating management's belief that the stock is undervalued.
• The company's most recent earnings report showed a 20.2% increase in revenue year-over-year, with an EPS of $1.58, surpassing estimates.

Baader Bank Aktiengesellschaft increased its holdings in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 25.5% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 19,262 shares of the semiconductor manufacturer's stock after purchasing an additional 3,908 shares during the quarter. Baader Bank Aktiengesellschaft's holdings in Broadcom were worth $3,225,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds and other institutional investors have also recently modified their holdings of the business. Barnes Dennig Private Wealth Management LLC bought a new stake in Broadcom during the first quarter valued at approximately $25,000. Inlight Wealth Management LLC bought a new position in shares of Broadcom in the first quarter worth approximately $26,000. Sunbeam Capital Management LLC bought a new position in shares of Broadcom in the fourth quarter worth approximately $28,000. Vermillion Wealth Management Inc. bought a new position in shares of Broadcom in the fourth quarter worth approximately $30,000. Finally, Wood Tarver Financial Group LLC boosted its position in shares of Broadcom by 342.5% in the first quarter. Wood Tarver Financial Group LLC now owns 177 shares of the semiconductor manufacturer's stock worth $30,000 after purchasing an additional 137 shares during the period. 76.43% of the stock is owned by institutional investors.

Insider Transactions at Broadcom

In other news, CEO Hock E. Tan sold 117,758 shares of Broadcom stock in a transaction on Thursday, June 12th. The shares were sold at an average price of $252.91, for a total value of $29,782,175.78. Following the transaction, the chief executive officer directly owned 1,014,152 shares of the company's stock, valued at $256,489,182.32. The trade was a 10.40% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Mark David Brazeal sold 50,000 shares of Broadcom stock in a transaction on Monday, June 23rd. The shares were 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 directly owned 415,956 shares in the company, valued at $105,353,335.68. The trade was 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. Insiders own 2.00% of the company's stock.

Broadcom Trading Down 1.7%

Shares of AVGO stock traded down $5.06 on Friday, hitting $288.64. The stock had a trading volume of 21,405,316 shares, compared to its average volume of 26,886,023. The company's 50 day moving average price is $265.36 and its 200-day moving average price is $224.11. The company has a debt-to-equity ratio of 0.89, a current ratio of 1.08 and a quick ratio of 0.98. Broadcom Inc. has a 1 year low of $128.50 and a 1 year high of $306.95. The firm has a market capitalization of $1.36 trillion, a P/E ratio of 108.10, a P/E/G ratio of 2.15 and a beta of 1.12.

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

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

Broadcom Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, June 30th. Investors of record on Friday, June 20th were given a $0.59 dividend. This represents a $2.36 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend was Friday, June 20th. Broadcom's dividend payout ratio (DPR) is 88.39%.

Analyst Upgrades and Downgrades

Several research firms have recently commented on AVGO. Arete Research raised shares of Broadcom to a "strong-buy" rating in a report on Monday. Evercore ISI reaffirmed an "outperform" rating and set a $304.00 price target (up previously from $267.00) on shares of Broadcom in a research note on Friday, June 6th. Erste Group Bank raised shares of Broadcom from a "hold" rating to a "buy" rating in a research note on Thursday, June 5th. Morgan Stanley set a $338.00 price target on shares of Broadcom and gave the company an "overweight" rating in a research note on Wednesday. Finally, Citigroup upped their price target on shares of Broadcom from $285.00 to $315.00 and gave the company a "buy" rating in a research note on Monday, July 7th. One investment analyst has rated the stock with a hold rating, twenty-seven have assigned a buy rating and three have issued a strong buy rating to the company. According to data from MarketBeat.com, Broadcom currently has a consensus rating of "Buy" and an average price target of $294.92.

About Broadcom

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.