Broadcom Inc. (NASDAQ:AVGO) is Hedeker Wealth LLC's 3rd Largest Position

Key Points

• Hedeker Wealth LLC reduced its position in Broadcom by 1.7% during the first quarter, retaining 100,187 shares valued at approximately $16.77 million, making it the firm's third-largest holding.
• Insider sales included Mark David Brazeal selling 50,000 shares for $12.66 million, and CFO Kirsten M. Spears selling 56,310 shares for $14.18 million, resulting in a significant decrease in their ownership.
• Broadcom's stock recently reached $290.18 with a market cap of $1.36 trillion, and the company has initiated a $10 billion share repurchase plan signaling management's belief in the stock's undervaluation.

Hedeker Wealth LLC lessened its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 1.7% in the first quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 100,187 shares of the semiconductor manufacturer's stock after selling 1,699 shares during the quarter. Broadcom comprises 4.5% of Hedeker Wealth LLC's investment portfolio, making the stock its 3rd biggest position. Hedeker Wealth LLC's holdings in Broadcom were worth $16,774,000 as of its most recent filing with the Securities & Exchange Commission.

Other large investors have also recently modified their holdings of the company. True Wealth Design LLC lifted its stake in Broadcom by 7.2% in the fourth quarter. True Wealth Design LLC now owns 712 shares of the semiconductor manufacturer's stock worth $165,000 after acquiring an additional 48 shares during the period. Mizuho Bank Ltd. lifted its holdings in Broadcom by 7.1% during the 4th quarter. Mizuho Bank Ltd. now owns 750 shares of the semiconductor manufacturer's stock valued at $174,000 after buying an additional 50 shares in the last quarter. Fulton Breakefield Broenniman LLC grew its stake in Broadcom by 2.4% in the first quarter. Fulton Breakefield Broenniman LLC now owns 2,130 shares of the semiconductor manufacturer's stock valued at $357,000 after purchasing an additional 50 shares during the last quarter. American Financial Advisors LLC grew its stake in shares of Broadcom by 3.8% during the first quarter. American Financial Advisors LLC now owns 1,432 shares of the semiconductor manufacturer's stock worth $240,000 after acquiring an additional 52 shares during the last quarter. Finally, First Bank & Trust boosted its holdings in shares of Broadcom by 1.9% in the 1st quarter. First Bank & Trust now owns 2,945 shares of the semiconductor manufacturer's stock valued at $493,000 after acquiring an additional 55 shares during the last quarter. Institutional investors and hedge funds own 76.43% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages recently issued reports on AVGO. Seaport Res Ptn raised shares of Broadcom to a "strong-buy" rating in a report on Wednesday, April 30th. Bank of America upped their target price on Broadcom from $240.00 to $300.00 and gave the company a "buy" rating in a report on Friday, June 6th. HSBC upgraded Broadcom from a "hold" rating to a "buy" rating and set a $400.00 price target for the company in a report on Tuesday, June 24th. UBS Group upped their price target on Broadcom from $270.00 to $290.00 and gave the stock a "buy" rating in a report on Friday, June 6th. Finally, The Goldman Sachs Group assumed coverage on Broadcom in a report on Thursday, July 10th. They set a "buy" rating and a $315.00 price objective on the stock. One equities research analyst has rated the stock with a hold rating, twenty-seven have issued a buy rating and two have issued a strong buy rating to the stock. According to MarketBeat, the stock currently has an average rating of "Buy" and a consensus price target of $292.08.

Insider Activity

In other news, CEO Hock E. Tan sold 40,000 shares of the company's stock in a transaction that occurred on Thursday, June 26th. The shares were sold at an average price of $268.29, for a total value of $10,731,600.00. Following the transaction, the chief executive officer owned 482,836 shares in the company, valued at approximately $129,540,070.44. This represents a 7.65% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Gayla J. Delly sold 3,000 shares of the stock in a transaction that occurred on Thursday, June 26th. The shares were sold at an average price of $265.13, for a total transaction of $795,390.00. Following the transaction, the director owned 33,352 shares in the company, valued at approximately $8,842,615.76. This trade represents a 8.25% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 830,516 shares of company stock worth $217,224,641. 2.00% of the stock is owned by company insiders.

Broadcom Stock Performance

Shares of Broadcom stock traded up $2.01 during mid-day trading on Monday, hitting $292.19. 4,542,559 shares of the stock were exchanged, 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 has a market capitalization of $1.37 trillion, a P/E ratio of 109.45, a P/E/G ratio of 2.06 and a beta of 1.12. Broadcom Inc. has a 12 month low of $128.50 and a 12 month high of $293.27. The company has a 50-day simple moving average of $260.05 and a 200 day simple moving average of $222.08.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its earnings results on Thursday, June 5th. The semiconductor manufacturer reported $1.58 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.57 by $0.01. The business had revenue of $15 billion for 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 business's revenue for the quarter was up 20.2% compared to the same quarter last year. During the same period in the prior year, the company posted $10.96 EPS. Sell-side analysts anticipate that Broadcom Inc. will post 5.38 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The business also recently announced 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 0.81%. The ex-dividend date of this dividend was Friday, June 20th. Broadcom's payout ratio is 88.39%.

Broadcom declared that its board has authorized a stock buyback plan on Monday, April 7th that authorizes the company to buyback $10.00 billion in shares. This buyback authorization authorizes the semiconductor manufacturer to purchase up to 1.4% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's board believes its stock is undervalued.

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.