Broadcom Inc. $AVGO Position Increased by Korea Investment CORP

Key Points

• Korea Investment CORP increased its stake in Broadcom Inc. by 4.4%, owning approximately 3.54 million shares valued at about $592.77 million.
• Broadcom reported better-than-expected quarterly earnings, with $1.58 earnings per share and revenue of $15 billion, surpassing analyst expectations.
• Several analysts have upgraded Broadcom's stock rating, with price targets rising; Citigroup set a new target of $315, reflecting strong investor sentiment.

Korea Investment CORP boosted its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 4.4% during the 1st quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 3,540,402 shares of the semiconductor manufacturer's stock after purchasing an additional 148,773 shares during the period. Broadcom makes up about 1.4% of Korea Investment CORP's portfolio, making the stock its 9th biggest position. Korea Investment CORP owned approximately 0.08% of Broadcom worth $592,770,000 as of its most recent filing with the Securities and Exchange Commission.

Several other large investors also recently bought and sold shares of AVGO. Barnes Dennig Private Wealth Management LLC purchased a new stake in Broadcom during the 1st quarter worth approximately $25,000. Cheviot Value Management LLC purchased a new stake in Broadcom during the 1st quarter worth approximately $25,000. Inlight Wealth Management LLC purchased a new stake in Broadcom during the 1st quarter worth approximately $26,000. Sunbeam Capital Management LLC purchased a new stake in Broadcom during the 4th quarter worth approximately $28,000. Finally, Vermillion Wealth Management Inc. purchased a new stake in Broadcom during the 4th quarter worth approximately $30,000. Hedge funds and other institutional investors own 76.43% of the company's stock.

Wall Street Analyst Weigh In

AVGO has been the topic of several recent research reports. Citigroup upped their price objective on shares of Broadcom from $285.00 to $315.00 and gave the company a "buy" rating in a report on Monday, July 7th. Arete Research raised shares of Broadcom to a "strong-buy" rating in a report on Monday, July 28th. Wells Fargo & Company upped their price objective on shares of Broadcom from $230.00 to $255.00 and gave the company an "equal weight" rating in a report on Friday, June 6th. Barclays upped their price objective on shares of Broadcom from $215.00 to $265.00 and gave the company an "overweight" rating in a report on Monday, June 9th. Finally, Susquehanna upped their price objective on shares of Broadcom from $280.00 to $300.00 and gave the company a "positive" rating in a report on Friday, June 6th. One investment analyst has rated the stock with a hold rating, twenty-seven have given a buy rating and three have given a strong buy rating to the company's stock. Based on data from MarketBeat, the stock has a consensus rating of "Buy" and a consensus target price of $295.96.

Broadcom Stock Performance

NASDAQ:AVGO opened at $306.34 on Monday. The company has a debt-to-equity ratio of 0.89, a quick ratio of 0.98 and a current ratio of 1.08. The company has a fifty day moving average of $278.27 and a two-hundred day moving average of $229.89. The stock has a market capitalization of $1.44 trillion, a PE ratio of 114.73, a P/E/G ratio of 2.18 and a beta of 1.15. Broadcom Inc. has a fifty-two week low of $134.90 and a fifty-two week high of $317.35.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings data on Thursday, June 5th. The semiconductor manufacturer reported $1.58 earnings per share for the quarter, topping analysts' consensus estimates of $1.57 by $0.01. The company had revenue of $15 billion during the quarter, compared to analysts' expectations of $14.98 billion. Broadcom had a net margin of 22.64% and a return on equity of 35.49%. The firm's revenue for the quarter was up 20.2% on a year-over-year basis. During the same period in the prior year, the business posted $10.96 earnings per share. As a group, research analysts forecast that Broadcom Inc. will post 5.38 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Monday, June 30th. Shareholders of record on Friday, June 20th were given a dividend of $0.59 per share. The ex-dividend date was Friday, June 20th. This represents a $2.36 dividend on an annualized basis and a yield of 0.8%. Broadcom's dividend payout ratio is currently 88.39%.

Insider Activity at Broadcom

In other news, CEO Hock E. Tan sold 117,758 shares of the stock in a transaction dated Thursday, June 12th. The shares were sold at an average price of $252.91, for a total value of $29,782,175.78. Following the completion of the sale, the chief executive officer directly owned 1,014,152 shares in the company, valued at $256,489,182.32. This represents a 10.40% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Mark David Brazeal sold 50,000 shares of the stock in a transaction dated 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 completion of the sale, the insider owned 415,956 shares of the company's stock, valued at $105,353,335.68. This trade represents a 10.73% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 830,516 shares of company stock valued at $217,286,457 in the last three months. Company 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.

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