CenterBook Partners LP Makes New Investment in Broadcom Inc. (NASDAQ:AVGO)

Key Points

• CenterBook Partners LP has acquired 107,167 shares of Broadcom Inc., totaling approximately $17.9 million, making it the firm's 13th largest holding.
• Broadcom reported a revenue of $15 billion in its latest quarter, exceeding analysts' expectations and showing a 20.2% increase year-over-year.
• The company recently announced a quarterly dividend of $0.59 per share, representing an annualized yield of 0.8% and a payout ratio of 88.39%.

CenterBook Partners LP bought a new stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) in the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund bought 107,167 shares of the semiconductor manufacturer's stock, valued at approximately $17,943,000. Broadcom accounts for about 1.1% of CenterBook Partners LP's investment portfolio, making the stock its 13th biggest holding.

Several other institutional investors also recently made changes to their positions in AVGO. Banco Bilbao Vizcaya Argentaria S.A. boosted its stake in shares of Broadcom by 3.8% in the fourth quarter. Banco Bilbao Vizcaya Argentaria S.A. now owns 515,388 shares of the semiconductor manufacturer's stock valued at $120,070,000 after purchasing an additional 18,845 shares during the period. PARUS FINANCE UK Ltd boosted its position in Broadcom by 175.3% in the 1st quarter. PARUS FINANCE UK Ltd now owns 100,578 shares of the semiconductor manufacturer's stock valued at $16,840,000 after buying an additional 64,038 shares during the last quarter. Nebula Research & Development LLC grew its stake in shares of Broadcom by 1,100.8% during the fourth quarter. Nebula Research & Development LLC now owns 15,707 shares of the semiconductor manufacturer's stock valued at $3,642,000 after acquiring an additional 14,399 shares in the last quarter. Keener Financial Planning LLC lifted its stake in shares of Broadcom by 34.8% in the first quarter. Keener Financial Planning LLC now owns 890 shares of the semiconductor manufacturer's stock worth $149,000 after acquiring an additional 230 shares in the last quarter. Finally, Diversify Wealth Management LLC boosted its holdings in Broadcom by 5.6% in the first quarter. Diversify Wealth Management LLC now owns 38,016 shares of the semiconductor manufacturer's stock valued at $6,365,000 after purchasing an additional 2,016 shares during the last quarter. 76.43% of the stock is owned by hedge funds and other institutional investors.

Broadcom Stock Performance

Broadcom stock traded up $1.21 during mid-day trading on Friday, hitting $304.97. 12,439,353 shares of the company's stock traded hands, compared to its average volume of 17,052,154. Broadcom Inc. has a one year low of $134.90 and a one year high of $310.34. The company has a market cap of $1.43 trillion, a PE ratio of 114.22, a price-to-earnings-growth ratio of 2.16 and a beta of 1.15. The firm has a 50 day moving average price of $272.87 and a 200 day moving average price of $226.82. The company has a quick ratio of 0.98, a current ratio of 1.08 and a debt-to-equity ratio of 0.89.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly earnings data on Thursday, June 5th. The semiconductor manufacturer reported $1.58 earnings per share for the quarter, beating analysts' consensus estimates 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 company's revenue was up 20.2% on a year-over-year basis. During the same period in the previous year, the business earned $10.96 earnings per share. On average, equities analysts forecast that Broadcom Inc. will post 5.38 EPS for the current year.

Broadcom Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Monday, June 30th. Stockholders of record on Friday, June 20th were paid a $0.59 dividend. This represents a $2.36 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend was Friday, June 20th. Broadcom's dividend payout ratio is currently 88.39%.

Insiders Place Their Bets

In other Broadcom news, CFO Kirsten M. Spears sold 56,310 shares of the stock in a transaction on Wednesday, June 18th. The stock was sold at an average price of $251.75, for a total transaction of $14,176,042.50. Following the completion of the transaction, the chief financial officer directly owned 361,937 shares of the company's stock, valued at approximately $91,117,639.75. This trade represents a 13.46% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Charlie B. Kawwas sold 10,000 shares of the business's stock in a transaction on Wednesday, June 11th. The stock was sold at an average price of $252.88, for a total value of $2,528,800.00. Following the completion of the sale, the insider directly owned 789,784 shares in the company, valued at $199,720,577.92. This represents a 1.25% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 830,516 shares of company stock valued at $217,224,641. 2.00% of the stock is currently owned by insiders.

Analyst Ratings Changes

Several equities analysts have recently commented on the company. The Goldman Sachs Group initiated coverage on Broadcom in a research note on Thursday, July 10th. They set a "buy" rating and a $315.00 target price for the company. Mizuho boosted their target price on shares of Broadcom from $315.00 to $320.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 16th. Wall Street Zen raised shares of Broadcom from a "hold" rating to a "buy" rating in a research report on Saturday, July 5th. Cantor Fitzgerald reissued an "overweight" rating and issued a $300.00 price objective on shares of Broadcom in a report on Friday, June 6th. Finally, Erste Group Bank raised Broadcom from a "hold" rating to a "buy" rating in a report on Thursday, June 5th. One investment analyst has rated the stock with a hold rating, twenty-seven have given a buy rating and three have given a strong buy rating to the company's stock. Based on data from MarketBeat.com, Broadcom currently has an average rating of "Buy" and a consensus target price of $294.92.

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.