Broadcom Inc. (NASDAQ:AVGO) Holdings Lessened by Mitsubishi UFJ Trust & Banking Corp

Key Points

• Mitsubishi UFJ Trust & Banking Corp reduced its stake in Broadcom by 2.5%, now holding approximately $370 million in shares, which is 1.0% of its investment portfolio.
• Broadcom's stock price has seen a significant fluctuation, with a current trading price of $288.64, a market cap of $1.36 trillion, and a 12-month high of $306.95.
• The company has announced a quarterly dividend of $0.59 per share and initiated a $10 billion stock buyback program, indicating a belief that the stock is undervalued.

Mitsubishi UFJ Trust & Banking Corp trimmed its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 2.5% during the first quarter, according to its most recent 13F filing with the SEC. The firm owned 2,210,838 shares of the semiconductor manufacturer's stock after selling 57,138 shares during the period. Broadcom comprises 1.0% of Mitsubishi UFJ Trust & Banking Corp's investment portfolio, making the stock its 9th biggest holding. Mitsubishi UFJ Trust & Banking Corp's holdings in Broadcom were worth $370,161,000 as of its most recent filing with the SEC.

Other institutional investors and hedge funds have also made changes to their positions in the company. Barnes Dennig Private Wealth Management LLC purchased a new position in Broadcom in the 1st quarter valued at approximately $25,000. Inlight Wealth Management LLC acquired a new position in shares of Broadcom in the first quarter worth $26,000. Sunbeam Capital Management LLC acquired a new position in shares of Broadcom in the fourth quarter worth $28,000. Vermillion Wealth Management Inc. acquired a new position in shares of Broadcom in the fourth quarter worth $30,000. Finally, Wood Tarver Financial Group LLC grew its stake in shares of Broadcom by 342.5% in the first quarter. Wood Tarver Financial Group LLC now owns 177 shares of the semiconductor manufacturer's stock worth $30,000 after acquiring an additional 137 shares in the last quarter. 76.43% of the stock is owned by hedge funds and other institutional investors.

Broadcom Stock Down 1.7%

AVGO stock opened at $288.64 on Friday. The company has a fifty day moving average price of $266.56 and a 200 day moving average price of $224.55. Broadcom Inc. has a 12 month low of $128.50 and a 12 month high of $306.95. The company has a market cap of $1.36 trillion, a price-to-earnings ratio of 108.10, a price-to-earnings-growth ratio of 2.09 and a beta of 1.15. The company has a debt-to-equity ratio of 0.89, a current ratio of 1.08 and a quick ratio of 0.98.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings results on Thursday, June 5th. The semiconductor manufacturer reported $1.58 EPS for the quarter, beating the consensus estimate of $1.57 by $0.01. Broadcom had a net margin of 22.64% and a return on equity of 35.49%. The firm had revenue of $15 billion during the quarter, compared to the consensus estimate of $14.98 billion. During the same quarter in the prior year, the firm earned $10.96 EPS. Broadcom's revenue for the quarter was up 20.2% on a year-over-year basis. Sell-side analysts expect that Broadcom Inc. will post 5.38 earnings per share for the current year.

Broadcom Announces Dividend

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

Broadcom declared that its Board of Directors has initiated a share repurchase program on Monday, April 7th that permits the company to buyback $10.00 billion in outstanding shares. This buyback authorization permits the semiconductor manufacturer to purchase up to 1.4% of its stock through open market purchases. Stock buyback programs are usually an indication that the company's leadership believes its stock is undervalued.

Analyst Upgrades and Downgrades

Several research firms have commented on AVGO. UBS Group boosted their price target on shares of Broadcom from $270.00 to $290.00 and gave the stock a "buy" rating in a research note on Friday, June 6th. Susquehanna boosted their price target on shares of Broadcom from $280.00 to $300.00 and gave the stock a "positive" rating in a research note on Friday, June 6th. Wall Street Zen upgraded shares of Broadcom from a "hold" rating to a "buy" rating in a report on Saturday, July 5th. Evercore ISI reiterated an "outperform" rating and set a $304.00 price target (up previously from $267.00) on shares of Broadcom in a report on Friday, June 6th. Finally, Hsbc Global Res upgraded shares of Broadcom from a "hold" rating to a "strong-buy" rating in a report on Tuesday, June 24th. One equities research analyst has rated the stock with a hold rating, twenty-seven have issued a buy rating and three have given a strong buy rating to the company. According to MarketBeat.com, Broadcom currently has a consensus rating of "Buy" and an average target price of $294.92.

Insider Buying and Selling at Broadcom

In other news, Director Henry Samueli sold 473,898 shares of the business's stock in a transaction dated Wednesday, June 25th. The shares were sold at an average price of $265.33, for a total transaction of $125,739,356.34. Following the transaction, the director directly owned 38,188,575 shares in the company, valued at $10,132,574,604.75. The trade was a 1.23% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Hock E. Tan sold 117,758 shares of the business's stock in a transaction dated Thursday, June 12th. The stock was sold at an average price of $252.91, for a total transaction of $29,782,175.78. Following the transaction, the chief executive officer owned 1,014,152 shares in the company, valued at approximately $256,489,182.32. This trade represents a 10.40% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 830,516 shares of company stock valued at $217,224,641. 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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