Cumberland Partners Ltd Increases Holdings in Broadcom Inc. (NASDAQ:AVGO)

Key Points

• Cumberland Partners Ltd increased its holdings in Broadcom Inc. by 8.8% in the first quarter, owning 181,098 shares valued at approximately $30.32 million.
• Broadcom's recent quarterly earnings surpassed expectations, with an earnings per share (EPS) of $1.58 and quarterly revenue of $15 billion, up 20.2% year-over-year.
• A stock buyback plan allowing Broadcom to repurchase up to $10 billion in shares indicates that the company believes its stock is undervalued.

Cumberland Partners Ltd boosted its position in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 8.8% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 181,098 shares of the semiconductor manufacturer's stock after purchasing an additional 14,668 shares during the period. Broadcom comprises 2.3% of Cumberland Partners Ltd's investment portfolio, making the stock its 15th biggest position. Cumberland Partners Ltd's holdings in Broadcom were worth $30,321,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently bought and sold shares of AVGO. Sunbeam Capital Management LLC purchased a new position in Broadcom in the 4th quarter valued at about $28,000. Vermillion Wealth Management Inc. acquired a new position in Broadcom in the fourth quarter valued at $30,000. Barnes Dennig Private Wealth Management LLC purchased a new position in Broadcom during the first quarter worth about $25,000. Inlight Wealth Management LLC acquired a new stake in Broadcom in the 1st quarter worth about $26,000. Finally, Mpwm Advisory Solutions LLC acquired a new stake in Broadcom in the 4th quarter worth about $37,000. 76.43% of the stock is owned by institutional investors and hedge funds.

Broadcom Trading Down 1.7%

NASDAQ:AVGO opened at $288.64 on Friday. The stock has a market cap of $1.36 trillion, a price-to-earnings ratio of 108.10, a price-to-earnings-growth ratio of 2.09 and a beta of 1.15. Broadcom Inc. has a one year low of $128.50 and a one year high of $306.95. 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 business's 50-day simple moving average is $266.56 and its 200 day simple moving average is $224.55.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings data 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. Broadcom had a return on equity of 35.49% and a net margin of 22.64%. The company had revenue of $15 billion for the quarter, compared to the consensus estimate of $14.98 billion. During the same period in the previous year, the business earned $10.96 EPS. Broadcom's revenue for the quarter was up 20.2% compared to the same quarter last year. As a group, sell-side analysts predict that Broadcom Inc. will post 5.38 earnings per share for the current fiscal year.

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

Broadcom Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, June 30th. Investors 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 was Friday, June 20th. Broadcom's payout ratio is 88.39%.

Insiders Place Their Bets

In other news, CEO Hock E. Tan sold 40,000 shares of the company's stock in a transaction dated 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 sale, 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 position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Gayla J. Delly sold 3,000 shares of the stock in a transaction dated Thursday, June 26th. The stock was sold at an average price of $265.13, for a total transaction of $795,390.00. Following the transaction, the director directly owned 33,352 shares in the company, valued at $8,842,615.76. The trade was a 8.25% 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 valued at $217,224,641. 2.00% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on the stock. HSBC raised shares of Broadcom from a "hold" rating to a "buy" rating and set a $400.00 price objective for the company in a research note on Tuesday, June 24th. Seaport Res Ptn raised shares of Broadcom to a "strong-buy" rating in a research report on Wednesday, April 30th. Wall Street Zen upgraded shares of Broadcom from a "hold" rating to a "buy" rating in a report on Saturday, July 5th. Mizuho boosted their price objective on shares of Broadcom from $315.00 to $320.00 and gave the company an "outperform" rating in a research note on Wednesday, July 16th. Finally, Arete Research raised Broadcom to a "strong-buy" rating in a research report on Monday, July 28th. One equities research analyst has rated the stock with a hold rating, twenty-seven have issued a buy rating and three have given a strong buy rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Buy" and an average price target 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.

Want to see what other hedge funds are holding AVGO? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Broadcom Inc. (NASDAQ:AVGO - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.