Broadcom Inc. $AVGO is Kennedy Investment Group's Largest Position

Key Points

• Kennedy Investment Group increased its Broadcom stake by 6.7% in the fourth quarter, making AVGO its largest holding at about 7.6% of the portfolio.
• Broadcom reported strong quarterly results, with EPS of $2.05 and revenue of $19.31 billion, both slightly ahead of expectations, while revenue grew 29.5% year over year.
• Wall Street remains generally bullish on the stock, with a Moderate Buy consensus and an average price target of $448.10, though some insiders recently sold shares.

Kennedy Investment Group increased its holdings in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 6.7% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The firm owned 58,215 shares of the semiconductor manufacturer's stock after acquiring an additional 3,631 shares during the quarter. Broadcom makes up about 7.6% of Kennedy Investment Group's investment portfolio, making the stock its largest position. Kennedy Investment Group's holdings in Broadcom were worth $20,148,000 at the end of the most recent quarter.

Other hedge funds also recently added to or reduced their stakes in the company. Providence First Trust Co lifted its position in shares of Broadcom by 1,099.3% during the third quarter. Providence First Trust Co now owns 8,923 shares of the semiconductor manufacturer's stock valued at $2,944,000 after buying an additional 8,179 shares during the last quarter. Whittier Trust Co. of Nevada Inc. lifted its position in shares of Broadcom by 3.4% during the third quarter. Whittier Trust Co. of Nevada Inc. now owns 323,587 shares of the semiconductor manufacturer's stock valued at $109,492,000 after buying an additional 10,786 shares during the last quarter. Brown Brothers Harriman & Co. lifted its position in shares of Broadcom by 10.7% during the third quarter. Brown Brothers Harriman & Co. now owns 77,411 shares of the semiconductor manufacturer's stock valued at $25,539,000 after buying an additional 7,499 shares during the last quarter. Dana Investment Advisors Inc. lifted its position in shares of Broadcom by 2.6% during the third quarter. Dana Investment Advisors Inc. now owns 173,759 shares of the semiconductor manufacturer's stock valued at $57,325,000 after buying an additional 4,442 shares during the last quarter. Finally, Guinness Atkinson Asset Management Inc lifted its position in shares of Broadcom by 248.2% during the third quarter. Guinness Atkinson Asset Management Inc now owns 26,238 shares of the semiconductor manufacturer's stock valued at $8,603,000 after buying an additional 18,703 shares during the last quarter. 76.43% of the stock is owned by hedge funds and other institutional investors.

Insider Buying and Selling at Broadcom

In other Broadcom news, insider Mark David Brazeal sold 50,488 shares of the firm's stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total transaction of $16,236,940.80. Following the completion of the transaction, the insider directly owned 278,141 shares of the company's stock, valued at approximately $89,450,145.60. This trade represents a 15.36% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, insider Charlie B. Kawwas sold 39,116 shares of the firm's stock in a transaction that occurred 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 transaction, 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. Over the last quarter, insiders sold 324,282 shares of company stock valued at $106,425,249. 1.90% of the stock is owned by corporate insiders.

Broadcom Stock Performance

Shares of Broadcom stock opened at $414.14 on Tuesday. The firm has a market capitalization of $1.96 trillion, a P/E ratio of 80.89, a PEG ratio of 0.86 and a beta of 1.43. The company has a quick ratio of 1.73, a current ratio of 1.90 and a debt-to-equity ratio of 0.80. The company has a 50 day moving average price of $374.86 and a 200 day moving average price of $356.49. Broadcom Inc. has a 52 week low of $226.18 and a 52 week high of $442.36.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its quarterly earnings data on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 EPS for the quarter, beating the consensus estimate of $2.03 by $0.02. The firm had revenue of $19.31 billion during the quarter, compared to analyst estimates of $19.10 billion. Broadcom had a net margin of 36.57% and a return on equity of 38.61%. Broadcom's revenue was up 29.5% on a year-over-year basis. During the same period last year, the firm posted $1.60 EPS. Sell-side analysts expect that Broadcom Inc. will post 9.91 EPS for the current year.

Broadcom Dividend Announcement

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

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on AVGO shares. Seaport Research Partners restated a "neutral" rating on shares of Broadcom in a research note on Wednesday, April 8th. Mizuho restated an "outperform" rating and set a $480.00 target price on shares of Broadcom in a research note on Thursday, April 16th. Citigroup restated a "buy" rating and set a $500.00 target price (up from $475.00) on shares of Broadcom in a research note on Tuesday, May 12th. Morgan Stanley boosted their target price on Broadcom from $462.00 to $470.00 and gave the stock an "overweight" rating in a research note on Friday, March 6th. Finally, Benchmark restated a "buy" rating and set a $485.00 target price on shares of Broadcom in a research note on Thursday, March 5th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, Broadcom presently has a consensus rating of "Moderate Buy" and an average target price of $448.10.

Broadcom Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.