Neo Ivy Capital Management Raises Stake in Broadcom Inc. (NASDAQ:AVGO)

Key Points

• Neo Ivy Capital Management increased its stake in Broadcom Inc. (NASDAQ:AVGO) by 143.2% in the first quarter, owning a total of 14,952 shares valued at approximately $2.5 million.
• Broadcom reported quarterly earnings of $1.58 EPS, exceeding analysts' expectations, with revenue rising 20.2% year-over-year to $15 billion.
• The company has authorized a $10 billion stock buyback program, signaling confidence in the value of its shares, while also announcing a quarterly dividend of $0.59 per share.

Neo Ivy Capital Management lifted its holdings in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 143.2% in the 1st quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 14,952 shares of the semiconductor manufacturer's stock after purchasing an additional 8,805 shares during the quarter. Broadcom accounts for approximately 0.8% of Neo Ivy Capital Management's holdings, making the stock its 28th largest position. Neo Ivy Capital Management's holdings in Broadcom were worth $2,503,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Sunbeam Capital Management LLC bought a new stake in Broadcom in the fourth quarter valued at $28,000. Vermillion Wealth Management Inc. bought a new stake in shares of Broadcom during the fourth quarter worth $30,000. Barnes Dennig Private Wealth Management LLC bought a new stake in shares of Broadcom during the first quarter worth $25,000. Inlight Wealth Management LLC acquired a new position in Broadcom during the first quarter valued at approximately $26,000. Finally, Mpwm Advisory Solutions LLC bought a new stake in Broadcom in the fourth quarter valued at approximately $37,000. 76.43% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

A number of equities research analysts have weighed in on the company. Susquehanna raised their target price on Broadcom from $280.00 to $300.00 and gave the company a "positive" rating in a report 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. Redburn Atlantic assumed coverage on shares of Broadcom in a research report on Wednesday, May 28th. They issued a "buy" rating and a $301.00 price objective on the stock. Oppenheimer upped their target price on shares of Broadcom from $265.00 to $305.00 and gave the stock an "outperform" rating in a report on Tuesday, July 15th. Finally, The Goldman Sachs Group assumed coverage on shares of Broadcom in a research note on Thursday, July 10th. They issued a "buy" rating and a $315.00 price objective for the company. 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. According to data from MarketBeat.com, the company currently has a consensus rating of "Buy" and a consensus target price of $292.08.

Broadcom Stock Performance

AVGO traded up $2.06 during trading hours on Monday, reaching $292.24. The company's stock had a trading volume of 4,542,559 shares, compared to its average volume of 26,994,857. 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's 50-day moving average is $260.05 and its 200-day moving average is $222.08. Broadcom Inc. has a 52 week low of $128.50 and a 52 week high of $293.27. The firm has a market cap of $1.37 trillion, a PE ratio of 109.45, a price-to-earnings-growth ratio of 2.06 and a beta of 1.12.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly earnings results on Thursday, June 5th. The semiconductor manufacturer reported $1.58 earnings per share for the quarter, beating the consensus estimate 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 return on equity of 35.49% and a net margin of 22.64%. The business's quarterly revenue was up 20.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted $10.96 earnings per share. On average, equities analysts forecast that Broadcom Inc. will post 5.38 EPS for the current year.

Broadcom Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 30th. Shareholders of record on Friday, June 20th were paid a $0.59 dividend. The ex-dividend date was Friday, June 20th. This represents a $2.36 dividend on an annualized basis and a yield of 0.81%. Broadcom's dividend payout ratio (DPR) is presently 88.39%.

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

Insider Buying and Selling

In other news, Director Henry Samueli sold 473,898 shares of the firm's stock in a transaction that occurred on Wednesday, June 25th. The stock was sold at an average price of $265.33, for a total value of $125,739,356.34. Following the transaction, the director owned 38,188,575 shares in the company, valued at $10,132,574,604.75. This trade represents a 1.23% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Hock E. Tan sold 117,758 shares of the business's stock in a transaction on Thursday, June 12th. The stock was sold at an average price of $252.91, for a total value of $29,782,175.78. Following the completion of the transaction, the chief executive officer directly owned 1,014,152 shares in the company, valued at approximately $256,489,182.32. This represents a 10.40% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 830,516 shares of company stock valued at $217,224,641. 2.00% of the stock is currently owned by company insiders.

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.