Primecap Management Co. CA Trims Stock Holdings in Broadcom Inc. (NASDAQ:AVGO)

Key Points

• Primecap Management Co. has reduced its stake in Broadcom Inc. by 1.5%, selling 14,160 shares during the 1st quarter and currently holding 943,720 shares valued at approximately $158 million.
• Insider trading activity has seen Director Justine Page and CFO Kirsten M. Spears sell significant amounts of stock, contributing to a total of 830,516 shares sold by insiders valued at over $217 million during the last quarter.
• Analysts have a positive outlook for Broadcom, with 28 analysts issuing ratings of "buy" or "strong buy" and boosting their average price target to $294.92.

Primecap Management Co. CA trimmed its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 1.5% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 943,720 shares of the semiconductor manufacturer's stock after selling 14,160 shares during the quarter. Primecap Management Co. CA's holdings in Broadcom were worth $158,007,000 at the end of the most recent quarter.

A number of other large investors have also recently added to or reduced their stakes in the stock. Hemington Wealth Management boosted its stake in Broadcom by 4.7% during the 1st quarter. Hemington Wealth Management now owns 3,742 shares of the semiconductor manufacturer's stock valued at $626,000 after acquiring an additional 167 shares during the last quarter. WealthShield Partners LLC lifted its position in shares of Broadcom by 14.0% in the 1st quarter. WealthShield Partners LLC now owns 18,720 shares of the semiconductor manufacturer's stock worth $3,134,000 after buying an additional 2,304 shares during the last quarter. Exencial Wealth Advisors LLC lifted its position in shares of Broadcom by 57.8% in the 1st quarter. Exencial Wealth Advisors LLC now owns 130,573 shares of the semiconductor manufacturer's stock worth $21,862,000 after buying an additional 47,853 shares during the last quarter. Vanguard Group Inc. lifted its position in shares of Broadcom by 0.4% in the 1st quarter. Vanguard Group Inc. now owns 477,220,137 shares of the semiconductor manufacturer's stock worth $79,900,968,000 after buying an additional 2,085,534 shares during the last quarter. Finally, Goldman Sachs Group Inc. lifted its position in shares of Broadcom by 16.7% in the 1st quarter. Goldman Sachs Group Inc. now owns 31,854,414 shares of the semiconductor manufacturer's stock worth $5,333,384,000 after buying an additional 4,550,647 shares during the last quarter. 76.43% of the stock is currently owned by institutional investors.

Broadcom Stock Up 0.4%

Shares of NASDAQ AVGO traded up $1.21 during mid-day trading on Friday, hitting $304.97. The company had a trading volume of 12,439,353 shares, compared to its average volume of 17,052,154. The company has a market capitalization of $1.43 trillion, a PE ratio of 114.22, a price-to-earnings-growth ratio of 2.17 and a beta of 1.15. Broadcom Inc. has a one year low of $134.90 and a one year high of $310.34. The firm has a 50-day simple moving average of $272.87 and a two-hundred day simple moving average of $226.72. The company has a current ratio of 1.08, a quick ratio of 0.98 and a debt-to-equity ratio of 0.89.

Broadcom (NASDAQ:AVGO - Get Free Report) last released 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. The business had revenue of $15 billion during the quarter, compared to the consensus estimate of $14.98 billion. Broadcom had a return on equity of 35.49% and a net margin of 22.64%. The firm's quarterly revenue was up 20.2% on a year-over-year basis. During the same period in the previous year, the company posted $10.96 EPS. On average, equities analysts expect that Broadcom Inc. will post 5.38 EPS for the current year.

Broadcom Dividend Announcement

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

Insider Activity

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

Analyst Ratings Changes

AVGO has been the topic of a number of recent research reports. UBS Group raised their price target on shares of Broadcom from $270.00 to $290.00 and gave the stock a "buy" rating in a research report on Friday, June 6th. Benchmark lifted their price objective on shares of Broadcom from $255.00 to $315.00 and gave the company a "buy" rating in a research report on Friday, June 6th. Cowen reiterated a "buy" rating on shares of Broadcom in a research report on Friday, June 6th. Susquehanna lifted their price objective on shares of Broadcom from $280.00 to $300.00 and gave the company a "positive" rating in a research report on Friday, June 6th. Finally, Bank of America lifted their price objective on shares of Broadcom from $240.00 to $300.00 and gave the company a "buy" rating in a research report on Friday, June 6th. Two research analysts have rated the stock with a hold rating, twenty-six have assigned a buy rating and three have assigned a strong buy rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Buy" and an average target price of $294.92.

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.