Bearing Point Capital LLC Lowers Stake in Broadcom Inc. (NASDAQ:AVGO)

Key Points

• Bearing Point Capital LLC reduced its holdings in Broadcom Inc. by 8.6% in the first quarter, selling 4,426 shares to hold a total of 46,848 shares, valued at approximately $7,844,000.
• CEO Hock E. Tan sold 117,758 shares for nearly $29.8 million, resulting in a 10.40% decrease in his ownership, while total insider sales in the last quarter reached over $217 million.
• Equities research analysts have set a consensus rating of “Buy” for Broadcom, with a price target range from $295.00 to $330.00, reflecting positive expectations for the stock's performance.

Bearing Point Capital LLC trimmed its position in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 8.6% during the first quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 46,848 shares of the semiconductor manufacturer's stock after selling 4,426 shares during the quarter. Broadcom makes up 1.7% of Bearing Point Capital LLC's holdings, making the stock its 12th largest position. Bearing Point Capital LLC's holdings in Broadcom were worth $7,844,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds also recently modified their holdings of the company. Barnes Dennig Private Wealth Management LLC acquired a new position in shares of Broadcom during the 1st quarter worth approximately $25,000. Inlight Wealth Management LLC bought a new position in shares of Broadcom during the first quarter valued at $26,000. Sunbeam Capital Management LLC bought a new position in Broadcom during the fourth quarter worth $28,000. Vermillion Wealth Management Inc. bought a new position in Broadcom during the fourth quarter worth $30,000. Finally, Wood Tarver Financial Group LLC raised its stake in 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 buying an additional 137 shares during the last quarter. 76.43% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

AVGO has been the subject of a number of research reports. Bank of America raised their price target on shares of Broadcom from $240.00 to $300.00 and gave the stock a "buy" rating in a report on Friday, June 6th. Redburn Atlantic initiated coverage on shares of Broadcom in a report on Wednesday, May 28th. They set a "buy" rating and a $301.00 price target on the stock. Cowen restated a "buy" rating on shares of Broadcom in a report on Friday, June 6th. Susquehanna boosted their target price on shares of Broadcom from $280.00 to $300.00 and gave the company a "positive" rating in a research note on Friday, June 6th. Finally, The Goldman Sachs Group started coverage on shares of Broadcom in a research note on Thursday, July 10th. They issued a "buy" rating and a $315.00 target price on the stock. One analyst has rated the stock with a hold rating, twenty-seven have given a buy rating and two have assigned a strong buy rating to the company. According to MarketBeat.com, Broadcom has an average rating of "Buy" and a consensus price target of $292.08.

Broadcom Price Performance

Shares of NASDAQ:AVGO traded up $2.35 during trading on Tuesday, reaching $296.65. The company had a trading volume of 9,742,510 shares, compared to its average volume of 26,937,945. The company has a fifty day moving average of $261.32 and a two-hundred day moving average of $222.57. The stock has a market capitalization of $1.40 trillion, a P/E ratio of 111.20, a price-to-earnings-growth ratio of 2.06 and a beta of 1.12. Broadcom Inc. has a 12 month low of $128.50 and a 12 month high of $302.19. 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 (NASDAQ:AVGO - Get Free Report) last issued 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. The firm had revenue of $15 billion for 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% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $10.96 EPS. Equities research analysts forecast that Broadcom Inc. will post 5.38 earnings per share for the current year.

Broadcom Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, June 30th. Investors of record on Friday, June 20th were issued a dividend of $0.59 per share. This represents a $2.36 annualized dividend and a dividend yield of 0.80%. The ex-dividend date of this dividend was Friday, June 20th. Broadcom's dividend payout ratio is currently 88.39%.

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

Insider Activity at Broadcom

In other Broadcom news, CEO Hock E. Tan sold 117,758 shares of the stock in a transaction on Thursday, June 12th. The shares were sold at an average price of $252.91, for a total transaction of $29,782,175.78. Following the completion of the sale, the chief executive officer owned 1,014,152 shares of the company's stock, valued at $256,489,182.32. This represents a 10.40% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Mark David Brazeal sold 50,000 shares of the 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 sale, the insider directly owned 415,956 shares of the company's stock, valued at $105,353,335.68. The trade was a 10.73% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 830,516 shares of company stock worth $217,224,641 in the last 90 days. Corporate insiders own 2.00% of the company's stock.

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.