Broadcom Inc. $AVGO is Highland Capital Management LLC's 3rd Largest Position

Key Points

• Highland Capital Management cut its Broadcom stake by 9.3% in Q4, but AVGO still remains its 3rd-largest holding, valued at about $74.5 million.
• Broadcom reported better-than-expected quarterly results, with EPS of $2.05 on revenue of $19.31 billion, while revenue rose 29.5% year over year.
• Despite recent insider selling and mixed analyst moves, Wall Street still rates Broadcom Moderate Buy overall, with a consensus price target of about $435.30.

Highland Capital Management LLC lowered its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 9.3% in the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 215,204 shares of the semiconductor manufacturer's stock after selling 22,176 shares during the period. Broadcom accounts for 3.7% of Highland Capital Management LLC's investment portfolio, making the stock its 3rd biggest holding. Highland Capital Management LLC's holdings in Broadcom were worth $74,482,000 as of its most recent filing with the Securities & Exchange Commission.

Several other large investors also recently modified their holdings of AVGO. JCIC Asset Management Inc. purchased a new stake in shares of Broadcom during the 3rd quarter worth approximately $31,000. Miller Global Investments LLC purchased a new stake in shares of Broadcom during the 4th quarter worth approximately $31,000. Nvest Wealth Strategies Inc. purchased a new stake in shares of Broadcom during the 4th quarter worth approximately $33,000. Manning & Napier Advisors LLC purchased a new stake in shares of Broadcom during the 3rd quarter worth approximately $34,000. Finally, Family CFO Inc purchased a new stake in shares of Broadcom during the 4th quarter worth approximately $35,000. Hedge funds and other institutional investors own 76.43% of the company's stock.

Insider Activity

In other Broadcom news, insider S. Ram Velaga sold 38,841 shares of the firm's stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total value of $12,491,265.60. Following the completion of the transaction, the insider directly owned 96,147 shares of the company's stock, valued at $30,920,875.20. This trade represents a 28.77% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Charlie B. Kawwas sold 39,116 shares of Broadcom stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $321.61, for a total transaction of $12,580,096.76. Following the sale, the insider directly owned 74,626 shares of the company's stock, valued at $24,000,467.86. This represents a 34.39% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 324,282 shares of company stock valued at $106,425,249 in the last quarter. 1.90% of the stock is currently owned by company insiders.

Broadcom Stock Down 0.4%

Shares of NASDAQ:AVGO opened at $428.43 on Tuesday. The firm has a fifty day moving average price of $356.98 and a two-hundred day moving average price of $352.45. The company has a debt-to-equity ratio of 0.80, a current ratio of 1.90 and a quick ratio of 1.73. Broadcom Inc. has a one year low of $215.88 and a one year high of $437.68. The company has a market cap of $2.03 trillion, a price-to-earnings ratio of 83.68, a PEG ratio of 0.89 and a beta of 1.43.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its quarterly earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 EPS for the quarter, beating the consensus estimate of $2.03 by $0.02. Broadcom had a net margin of 36.57% and a return on equity of 38.61%. The firm had revenue of $19.31 billion during the quarter, compared to the consensus estimate of $19.10 billion. During the same period last year, the firm earned $1.60 EPS. The business's quarterly revenue was up 29.5% compared to the same quarter last year. Analysts anticipate that Broadcom Inc. will post 9.95 EPS for the current fiscal year.

Broadcom Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Monday, March 23rd were issued a $0.65 dividend. This represents a $2.60 annualized dividend and a yield of 0.6%. The ex-dividend date of this dividend was Monday, March 23rd. Broadcom's dividend payout ratio (DPR) is presently 50.78%.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently issued reports on AVGO shares. Citigroup raised their price target on shares of Broadcom from $458.00 to $475.00 and gave the stock a "buy" rating in a research note on Thursday, March 5th. Seaport Research Partners restated a "neutral" rating on shares of Broadcom in a research note on Wednesday, April 8th. Erste Group Bank lowered shares of Broadcom from a "buy" rating to a "hold" rating in a research note on Thursday, April 2nd. Weiss Ratings lowered shares of Broadcom from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Friday, April 24th. Finally, Royal Bank Of Canada reduced their price objective on shares of Broadcom from $370.00 to $340.00 and set a "sector perform" rating for the company in a research note on Monday, March 2nd. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $435.30.

About Broadcom

Broadcom Inc NASDAQ: AVGO is a global technology company that designs, develops and supplies semiconductor and infrastructure software solutions for a broad range of markets. The company's semiconductor business provides components and systems for wired and wireless communications, enterprise and cloud storage, networking and broadband access, serving original equipment manufacturers, cloud service providers, telecommunications carriers and industrial customers worldwide. Broadcom is headquartered in Irvine, California, and operates globally with research, development and sales organizations across North America, Europe and Asia.

On the semiconductor side, Broadcom's portfolio includes system-on-chip (SoC) and application-specific integrated circuit (ASIC) solutions, radio-frequency and connectivity components, Ethernet switching and PHY devices, storage adapters and controllers, optical transceivers and other networking silicon.

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