Baker Avenue Asset Management LP Raises Stake in Broadcom Inc. (NASDAQ:AVGO)

Key Points

• Baker Avenue Asset Management LP increased its stake in Broadcom Inc. by 43.4%, owning 27,641 shares valued at approximately $4.63 million after purchasing an additional 8,367 shares in the first quarter.
• Broadcom's recent quarterly earnings report revealed $1.58 earnings per share, beating estimates and showing a 20.2% year-over-year revenue growth to $15 billion.
• The company has approved a $10 billion share repurchase program as a sign that its leadership believes the stock is undervalued, and recently declared a quarterly dividend of $0.59.

Baker Avenue Asset Management LP increased its holdings in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 43.4% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 27,641 shares of the semiconductor manufacturer's stock after purchasing an additional 8,367 shares during the period. Baker Avenue Asset Management LP's holdings in Broadcom were worth $4,628,000 at the end of the most recent quarter.

Several other institutional investors and hedge funds have also modified their holdings of AVGO. Barnes Dennig Private Wealth Management LLC bought a new position in shares of Broadcom in the first quarter valued at $25,000. Inlight Wealth Management LLC acquired a new stake in Broadcom in the first quarter valued at $26,000. Sunbeam Capital Management LLC bought a new position in shares of Broadcom in the 4th quarter valued at about $28,000. Vermillion Wealth Management Inc. acquired a new position in shares of Broadcom during the 4th quarter worth about $30,000. Finally, Wood Tarver Financial Group LLC increased its stake in shares of Broadcom by 342.5% during the 1st 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 last quarter. 76.43% of the stock is currently owned by institutional investors and hedge funds.

Insider Transactions at Broadcom

In related news, Director Henry Samueli sold 473,898 shares of the company's stock in a transaction dated Wednesday, June 25th. The shares were sold at an average price of $265.33, for a total value of $125,739,356.34. Following the sale, the director owned 38,188,575 shares in the company, valued at $10,132,574,604.75. This represents a 1.23% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Charlie B. Kawwas sold 10,000 shares of the business's stock in a transaction that occurred on Wednesday, June 11th. The stock was sold at an average price of $252.88, for a total value of $2,528,800.00. Following the sale, the insider directly owned 789,784 shares of the company's stock, valued at $199,720,577.92. This represents a 1.25% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 830,516 shares of company stock valued at $217,224,641. Corporate insiders own 2.00% of the company's stock.

Analyst Upgrades and Downgrades

AVGO has been the topic of a number of recent analyst reports. Benchmark boosted their target price on Broadcom from $255.00 to $315.00 and gave the stock a "buy" rating in a report on Friday, June 6th. Rosenblatt Securities raised their target price on shares of Broadcom from $223.00 to $340.00 and gave the stock a "buy" rating in a research note on Friday, June 6th. Bank of America upped their price target on shares of Broadcom from $240.00 to $300.00 and gave the company a "buy" rating in a research note on Friday, June 6th. Evercore ISI reissued an "outperform" rating and issued a $304.00 price target (up from $267.00) on shares of Broadcom in a report on Friday, June 6th. Finally, UBS Group lifted their price target on Broadcom from $270.00 to $290.00 and gave the stock a "buy" rating in a report on Friday, June 6th. One equities research analyst has rated the stock with a hold rating, twenty-seven have given a buy rating and three have assigned a strong buy rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Buy" and an average target price of $294.92.

Broadcom Trading Down 1.7%

NASDAQ:AVGO traded down $5.06 during mid-day trading on Friday, hitting $288.64. 21,405,316 shares of the company's stock were exchanged, compared to its average volume of 15,995,794. The company has a 50 day simple moving average of $266.56 and a 200-day simple moving average of $224.53. The company has a current ratio of 1.08, a quick ratio of 0.98 and a debt-to-equity ratio of 0.89. The firm has a market capitalization of $1.36 trillion, a P/E ratio of 108.10, a PEG ratio of 2.05 and a beta of 1.15. Broadcom Inc. has a fifty-two week low of $128.50 and a fifty-two week high of $306.95.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings results on Thursday, June 5th. The semiconductor manufacturer reported $1.58 EPS for the quarter, topping 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 business had revenue of $15 billion during the quarter, compared to analysts' expectations of $14.98 billion. During the same period last year, the company posted $10.96 earnings per share. The business's quarterly revenue was up 20.2% on a year-over-year basis. As a group, research analysts expect that Broadcom Inc. will post 5.38 earnings per share for the current year.

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

Broadcom Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, June 30th. Shareholders of record on Friday, June 20th were paid 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%.

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.