Assetmark Inc. Cuts Stock Holdings in Broadcom Inc. (NASDAQ:AVGO)

Key Points

• Assetmark Inc. has reduced its stake in Broadcom Inc. by 1.4%, owning 1,664,021 shares valued at approximately $278.6 million as of the latest SEC filing.
• Broadcom recently reported quarterly earnings, exceeding expectations with a net margin of 22.64% and revenue of $15 billion, up 20.2% from the same quarter last year.
• The company has initiated a $10 billion share buyback program, signaling confidence in its stock's valuation amidst strong institutional ownership, which stands at 76.43%.

Assetmark Inc. cut its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 1.4% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 1,664,021 shares of the semiconductor manufacturer's stock after selling 23,072 shares during the quarter. Broadcom makes up approximately 0.8% of Assetmark Inc.'s investment portfolio, making the stock its 28th largest holding. Assetmark Inc.'s holdings in Broadcom were worth $278,607,000 as of its most recent SEC filing.

Several other large investors also recently modified their holdings of the stock. Barnes Dennig Private Wealth Management LLC acquired a new stake in Broadcom during the first quarter worth about $25,000. Inlight Wealth Management LLC acquired a new stake in shares of Broadcom in the 1st quarter valued at approximately $26,000. Sunbeam Capital Management LLC acquired a new stake in shares of Broadcom in the 4th quarter valued at approximately $28,000. Vermillion Wealth Management Inc. acquired a new stake in shares of Broadcom in the 4th quarter valued at approximately $30,000. Finally, Wood Tarver Financial Group LLC boosted its stake in shares of Broadcom by 342.5% in the 1st quarter. Wood Tarver Financial Group LLC now owns 177 shares of the semiconductor manufacturer's stock valued at $30,000 after purchasing an additional 137 shares in the last quarter. 76.43% of the stock is owned by institutional investors.

Broadcom Trading Up 0.5%

Shares of NASDAQ:AVGO traded up $1.47 during mid-day trading on Friday, hitting $290.18. The company had a trading volume of 12,031,575 shares, compared to its average volume of 17,076,324. The firm has a fifty day moving average price of $260.05 and a 200 day moving average price of $222.18. The company has a market capitalization of $1.36 trillion, a PE ratio of 108.68, a price-to-earnings-growth ratio of 2.05 and a beta of 1.12. 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 Inc. has a one year low of $128.50 and a one year high of $292.59.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings results on Thursday, June 5th. The semiconductor manufacturer reported $1.58 earnings per share (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 business had revenue of $15 billion during the quarter, compared to the consensus estimate of $14.98 billion. During the same quarter last year, the firm posted $10.96 EPS. Broadcom's revenue was up 20.2% compared to the same quarter last year. As a group, research analysts forecast that Broadcom Inc. will post 5.38 EPS for the current year.

Broadcom Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Monday, June 30th. Investors of record on Friday, June 20th were given a $0.59 dividend. This represents a $2.36 annualized dividend and a yield of 0.81%. The ex-dividend date of this dividend was Friday, June 20th. Broadcom's payout ratio is currently 88.39%.

Broadcom declared that its board has initiated a share buyback 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 repurchase up to 1.4% of its shares through open market purchases. Shares buyback programs are often a sign that the company's board of directors believes its shares are undervalued.

Analyst Ratings Changes

A number of equities research analysts have recently weighed in on the stock. Seaport Res Ptn upgraded shares of Broadcom to a "strong-buy" rating in a research note on Wednesday, April 30th. UBS Group raised their price target on shares of Broadcom from $270.00 to $290.00 and gave the company a "buy" rating in a research note on Friday, June 6th. Morgan Stanley raised their price objective on shares of Broadcom from $260.00 to $270.00 and gave the company an "overweight" rating in a report on Friday, June 6th. Mizuho raised their price objective on shares of Broadcom from $315.00 to $320.00 and gave the company an "outperform" rating in a report on Wednesday, July 16th. 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 investment analyst has rated the stock with a hold rating, twenty-seven have given a buy rating and two have assigned a strong buy rating to the company. Based on data from MarketBeat.com, Broadcom currently has a consensus rating of "Buy" and an average price target of $292.08.

Insiders Place Their Bets

In related news, Director Justine Page sold 800 shares of Broadcom stock in a transaction on Monday, July 14th. The shares were sold at an average price of $274.30, for a total value of $219,440.00. Following the completion of the sale, the director owned 24,582 shares of the company's stock, valued at approximately $6,742,842.60. This trade represents a 3.15% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Hock E. Tan sold 40,000 shares of Broadcom stock in a transaction on Thursday, June 26th. The shares were sold at an average price of $268.29, for a total transaction of $10,731,600.00. Following the completion of the sale, the chief executive officer directly owned 482,836 shares of the company's stock, valued at approximately $129,540,070.44. The trade was a 7.65% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 830,516 shares of company stock worth $217,224,641 in the last quarter. Insiders own 2.00% of the company's stock.

Broadcom 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.