Broadcom Inc. $AVGO Stock Position Cut by Elk River Wealth Management LLC

Key Points

• Elk River Wealth Management LLC reduced its Broadcom stake by 6.9% in the fourth quarter, selling 5,940 shares and leaving it with 80,225 shares valued at about $27.7 million.
• Broadcom reported strong quarterly results, with earnings per share of $2.05 and revenue of $19.31 billion, both slightly above expectations; revenue rose 29.5% year over year.
• Analysts remain broadly positive on AVGO, with an average “Moderate Buy” rating and an average price target of $448.10, though some firms have recently trimmed targets or downgraded the stock.

Elk River Wealth Management LLC cut its position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 6.9% during the fourth quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 80,225 shares of the semiconductor manufacturer's stock after selling 5,940 shares during the period. Broadcom accounts for 3.6% of Elk River Wealth Management LLC's holdings, making the stock its 7th biggest position. Elk River Wealth Management LLC's holdings in Broadcom were worth $27,741,000 at the end of the most recent reporting period.

Other hedge funds have also recently added to or reduced their stakes in the company. Miller Global Investments LLC purchased a new stake in Broadcom during the fourth quarter worth $31,000. Nvest Wealth Strategies Inc. purchased a new stake in Broadcom during the fourth quarter worth $33,000. Family CFO Inc purchased a new position in Broadcom during the fourth quarter valued at $35,000. PayPay Securities Corp lifted its holdings in Broadcom by 88.9% during the fourth quarter. PayPay Securities Corp now owns 119 shares of the semiconductor manufacturer's stock valued at $41,000 after purchasing an additional 56 shares in the last quarter. Finally, Camelot Portfolios LLC purchased a new position in Broadcom during the fourth quarter valued at $45,000. 76.43% of the stock is owned by hedge funds and other institutional investors.

Broadcom Stock Performance

NASDAQ:AVGO opened at $414.14 on Tuesday. The company's 50-day moving average price is $374.86 and its 200-day moving average price is $356.49. The company has a current ratio of 1.90, a quick ratio of 1.73 and a debt-to-equity ratio of 0.80. The company has a market cap of $1.96 trillion, a P/E ratio of 80.89, a P/E/G ratio of 0.86 and a beta of 1.43. Broadcom Inc. has a twelve month low of $226.18 and a twelve month high of $442.36.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share for the quarter, topping the consensus estimate of $2.03 by $0.02. The firm had revenue of $19.31 billion for the quarter, compared to the consensus estimate of $19.10 billion. Broadcom had a net margin of 36.57% and a return on equity of 38.61%. The company's revenue for the quarter was up 29.5% on a year-over-year basis. During the same period last year, the firm posted $1.60 earnings per share. On average, sell-side analysts forecast that Broadcom Inc. will post 9.91 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

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

Analysts Set New Price Targets

Several research firms have issued reports on AVGO. Citigroup reaffirmed a "buy" rating and set a $500.00 price objective (up from $475.00) on shares of Broadcom in a report on Tuesday, May 12th. Rosenblatt Securities reaffirmed a "buy" rating and set a $500.00 price objective on shares of Broadcom in a report on Tuesday, April 7th. Weiss Ratings downgraded shares of Broadcom from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, April 24th. Royal Bank Of Canada decreased their price objective on shares of Broadcom from $370.00 to $340.00 and set a "sector perform" rating on the stock in a report on Monday, March 2nd. Finally, Bank of America decreased their price objective on shares of Broadcom from $500.00 to $450.00 and set a "buy" rating on the stock in a report on Thursday, March 5th. One analyst has rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $448.10.

Insider Buying and Selling at Broadcom

In other news, insider S. Ram Velaga sold 38,841 shares of the firm's stock in a transaction dated 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 transaction, the insider directly owned 96,147 shares of the company's stock, valued at approximately $30,920,875.20. This trade represents a 28.77% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, insider Charlie B. Kawwas sold 39,116 shares of the firm's stock in a transaction dated 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 completion of the transaction, the insider directly owned 74,626 shares in the company, valued at approximately $24,000,467.86. This represents a 34.39% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 324,282 shares of company stock valued at $106,425,249. Corporate insiders own 1.90% of the company's stock.

Broadcom 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.

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