Broadcom Inc. (NASDAQ:AVGO) is Valley Wealth Managers Inc.'s 9th Largest Position

Key Points

• Valley Wealth Managers Inc. reduced its holdings in Broadcom Inc. by 34.9% during the first quarter, now owning 150,067 shares valued at approximately $25.1 million.
• Broadcom's latest quarterly earnings exceeded expectations, with an earnings per share of $1.58 on revenues of $15 billion, marking a 20.2% year-over-year increase.
• The company initiated a $10 billion stock buyback program, indicating management's belief that the stock is undervalued.

Valley Wealth Managers Inc. lowered its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 34.9% in the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 150,067 shares of the semiconductor manufacturer's stock after selling 80,293 shares during the quarter. Broadcom accounts for approximately 1.9% of Valley Wealth Managers Inc.'s portfolio, making the stock its 9th largest position. Valley Wealth Managers Inc.'s holdings in Broadcom were worth $25,126,000 as of its most recent SEC filing.

Several other hedge funds also recently modified their holdings of the stock. Barnes Dennig Private Wealth Management LLC purchased a new position in shares of Broadcom during the first quarter valued at approximately $25,000. Inlight Wealth Management LLC purchased a new stake in shares of Broadcom in the first quarter valued at about $26,000. Sunbeam Capital Management LLC purchased a new stake in shares of Broadcom in the fourth quarter valued at about $28,000. Vermillion Wealth Management Inc. purchased a new stake in shares of Broadcom in the fourth quarter valued at about $30,000. Finally, Wood Tarver Financial Group LLC raised its holdings 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 valued at $30,000 after purchasing an additional 137 shares during the last quarter. Institutional investors own 76.43% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts have recently commented on the stock. Wells Fargo & Company increased their target price on shares of Broadcom from $230.00 to $255.00 and gave the company an "equal weight" rating in a report on Friday, June 6th. Cowen reiterated a "buy" rating on shares of Broadcom in a report on Friday, June 6th. Seaport Res Ptn upgraded shares of Broadcom to a "strong-buy" rating in a report on Wednesday, April 30th. Barclays increased their price target on shares of Broadcom from $215.00 to $265.00 and gave the company an "overweight" rating in a research report on Monday, June 9th. Finally, Hsbc Global Res upgraded shares of Broadcom from a "hold" rating to a "strong-buy" rating in a research report on Tuesday, June 24th. One analyst has rated the stock with a hold rating, twenty-seven have given a buy rating and two have issued a strong buy rating to the company. According to MarketBeat, the stock has an average rating of "Buy" and an average target price of $292.08.

Insiders Place Their Bets

In other Broadcom news, Director Henry Samueli sold 473,898 shares of the company'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 completion of the sale, the director owned 38,188,575 shares of the company's stock, valued at $10,132,574,604.75. This represents a 1.23% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Kirsten M. Spears sold 36,350 shares of the company's stock in a transaction that occurred on Tuesday, June 24th. The stock was sold at an average price of $261.27, for a total value of $9,497,164.50. Following the completion of the sale, the chief financial officer directly owned 325,587 shares of the company's stock, valued at approximately $85,066,115.49. This represents a 10.04% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 830,516 shares of company stock valued at $217,224,641 over the last 90 days. Company insiders own 2.00% of the company's stock.

Broadcom Price Performance

Shares of AVGO stock traded up $2.35 during trading on Tuesday, hitting $296.65. The company had a trading volume of 9,742,510 shares, compared to its average volume of 26,937,945. The company has a quick ratio of 0.98, a current ratio of 1.08 and a debt-to-equity ratio of 0.89. The stock's 50-day moving average is $261.32 and its two-hundred day moving average is $222.57. The stock has a market capitalization of $1.40 trillion, a price-to-earnings ratio of 111.20, a price-to-earnings-growth ratio of 2.06 and a beta of 1.12. Broadcom Inc. has a 52 week low of $128.50 and a 52 week high of $302.19.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued 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 during the quarter, compared to analyst estimates of $14.98 billion. Broadcom had a return on equity of 35.49% and a net margin of 22.64%. Broadcom's revenue for the quarter was up 20.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned $10.96 earnings per share. As a group, analysts predict that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Monday, June 30th. Shareholders of record on Friday, June 20th were paid a $0.59 dividend. This represents a $2.36 annualized dividend and a yield of 0.80%. The ex-dividend date was Friday, June 20th. Broadcom's dividend payout ratio is currently 88.39%.

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

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.