Broadcom Inc. $AVGO Position Cut by RNC Capital Management LLC

Key Points

• RNC Capital Management cut its Broadcom stake by 10.2% in the fourth quarter, selling 14,610 shares and leaving it with 128,047 shares valued at about $44.3 million.
• Broadcom insiders have been selling shares recently, including S. Ram Velaga and Justine Page, with total insider sales over the last three months reaching 324,282 shares worth about $106.4 million.
• Analysts remain largely bullish on AVGO, with a consensus rating of “Moderate Buy” and an average price target of $435.30, while the stock also recently beat earnings and revenue estimates for the quarter.

RNC Capital Management LLC trimmed its holdings in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 10.2% in the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 128,047 shares of the semiconductor manufacturer's stock after selling 14,610 shares during the quarter. Broadcom comprises 2.0% of RNC Capital Management LLC's portfolio, making the stock its 23rd largest holding. RNC Capital Management LLC's holdings in Broadcom were worth $44,317,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also added to or reduced their stakes in the business. Baring Financial LLC grew its holdings in Broadcom by 2.2% in the 4th quarter. Baring Financial LLC now owns 1,359 shares of the semiconductor manufacturer's stock worth $470,000 after buying an additional 29 shares in the last quarter. Five Oceans Advisors grew its holdings in Broadcom by 0.4% in the 4th quarter. Five Oceans Advisors now owns 8,191 shares of the semiconductor manufacturer's stock worth $2,835,000 after buying an additional 29 shares in the last quarter. Jackson Hole Capital Partners LLC grew its holdings in Broadcom by 1.4% in the 3rd quarter. Jackson Hole Capital Partners LLC now owns 2,170 shares of the semiconductor manufacturer's stock worth $716,000 after buying an additional 30 shares in the last quarter. Private Wealth Partners LLC grew its holdings in Broadcom by 0.7% in the 3rd quarter. Private Wealth Partners LLC now owns 4,273 shares of the semiconductor manufacturer's stock worth $1,410,000 after buying an additional 30 shares in the last quarter. Finally, Planning Alternatives Ltd. ADV grew its holdings in Broadcom by 1.4% in the 3rd quarter. Planning Alternatives Ltd. ADV now owns 2,168 shares of the semiconductor manufacturer's stock worth $715,000 after buying an additional 30 shares in the last quarter. 76.43% of the stock is owned by institutional investors.

Insider Activity at Broadcom

In other news, insider S. Ram Velaga sold 8,000 shares of the stock in a transaction on Friday, April 10th. The stock was sold at an average price of $370.52, for a total transaction of $2,964,160.00. Following the completion of the sale, the insider owned 57,932 shares in the company, valued at approximately $21,464,964.64. This represents a 12.13% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Justine Page sold 2,018 shares of the stock in a transaction on Wednesday, April 8th. The shares were sold at an average price of $353.00, for a total value of $712,354.00. Following the sale, the director owned 18,164 shares of the company's stock, valued at $6,411,892. This trade represents a 10.00% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last three months, insiders have sold 324,282 shares of company stock worth $106,425,249. 1.90% of the stock is owned by corporate insiders.

Wall Street Analysts Forecast Growth

A number of equities analysts recently issued reports on AVGO shares. Mizuho reissued an "outperform" rating and issued a $480.00 price objective on shares of Broadcom in a report on Thursday, April 16th. Truist Financial increased their price objective on Broadcom from $510.00 to $545.00 and gave the stock a "buy" rating in a report on Thursday, March 5th. Rosenblatt Securities restated a "buy" rating and issued a $500.00 target price on shares of Broadcom in a research report on Tuesday, April 7th. Zacks Research upgraded Broadcom from a "hold" rating to a "strong-buy" rating in a research report on Thursday, April 2nd. Finally, Royal Bank Of Canada cut their target price on Broadcom from $370.00 to $340.00 and set a "sector perform" rating for the company in a research report 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 stock. Based on data from MarketBeat.com, Broadcom presently has a consensus rating of "Moderate Buy" and an average target price of $435.30.

Broadcom Stock Performance

AVGO opened at $428.43 on Tuesday. The company has a market capitalization of $2.03 trillion, a price-to-earnings ratio of 83.68, a price-to-earnings-growth ratio of 0.89 and a beta of 1.43. 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 1-year low of $215.88 and a 1-year high of $437.68. The business has a 50 day moving average price of $356.98 and a two-hundred day moving average price of $352.45.

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

Broadcom Announces Dividend

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

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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