DE Burlo Group Inc. Purchases 88,670 Shares of Broadcom Inc. (NASDAQ:AVGO)

Key Points

• DE Burlo Group Inc. significantly increased its stake in Broadcom Inc. by 235.3%, acquiring 88,670 shares during the first quarter, bringing its total holdings to 126,355 shares valued at approximately $21 million.
• Several hedge funds, including GAMMA Investing LLC, have made substantial increases in their positions in Broadcom, with GAMMA alone boosting its shares by an extraordinary 18,179.3%.
• Broadcom reported strong quarterly earnings, exceeding expectations with a revenue of $15 billion and an EPS of $1.58, while also announcing a $0.59 quarterly dividend.

DE Burlo Group Inc. raised its position in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 235.3% in the 1st quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 126,355 shares of the semiconductor manufacturer's stock after buying an additional 88,670 shares during the period. Broadcom accounts for 3.1% of DE Burlo Group Inc.'s investment portfolio, making the stock its 14th biggest holding. DE Burlo Group Inc.'s holdings in Broadcom were worth $21,156,000 at the end of the most recent quarter.

Other hedge funds have also recently modified their holdings of the company. GAMMA Investing LLC grew its position in shares of Broadcom by 18,179.3% during the 1st quarter. GAMMA Investing LLC now owns 17,276,164 shares of the semiconductor manufacturer's stock valued at $2,892,548,000 after acquiring an additional 17,181,652 shares during the period. Price T Rowe Associates Inc. MD lifted its stake in Broadcom by 46.9% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 47,524,533 shares of the semiconductor manufacturer's stock valued at $11,018,089,000 after purchasing an additional 15,171,849 shares during the last quarter. Franklin Resources Inc. grew its holdings in Broadcom by 27.4% during the fourth quarter. Franklin Resources Inc. now owns 26,897,909 shares of the semiconductor manufacturer's stock valued at $6,236,011,000 after purchasing an additional 5,783,988 shares during the period. Northern Trust Corp increased its position in Broadcom by 12.0% in the fourth quarter. Northern Trust Corp now owns 49,087,351 shares of the semiconductor manufacturer's stock worth $11,380,411,000 after buying an additional 5,258,925 shares during the last quarter. Finally, APG Asset Management N.V. raised its stake in shares of Broadcom by 609.4% in the fourth quarter. APG Asset Management N.V. now owns 4,379,348 shares of the semiconductor manufacturer's stock valued at $980,500,000 after buying an additional 3,762,034 shares during the period. Institutional investors own 76.43% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on AVGO shares. Barclays increased their price target on Broadcom from $215.00 to $265.00 and gave the stock an "overweight" rating in a research note on Monday, June 9th. Erste Group Bank upgraded shares of Broadcom from a "hold" rating to a "buy" rating in a research report on Thursday, June 5th. JPMorgan Chase & Co. lifted their target price on shares of Broadcom from $250.00 to $325.00 and gave the stock an "overweight" rating in a research note on Friday, June 6th. Wall Street Zen upgraded shares of Broadcom from a "hold" rating to a "buy" rating in a research note on Saturday, July 5th. Finally, 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 report on Tuesday, June 24th. One research analyst has rated the stock with a hold rating, twenty-seven have issued a buy rating and two have given a strong buy rating to the company's stock. Based on data from MarketBeat.com, Broadcom has a consensus rating of "Buy" and an average target price of $292.08.

Insiders Place Their Bets

In other Broadcom news, CEO Hock E. Tan sold 117,758 shares of Broadcom stock in a transaction dated Thursday, June 12th. The stock was sold at an average price of $252.91, for a total transaction of $29,782,175.78. Following the completion of the sale, the chief executive officer owned 1,014,152 shares of the company's stock, valued at $256,489,182.32. The trade was a 10.40% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Henry Samueli sold 473,898 shares of the company's stock in a transaction dated 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 transaction, the director owned 38,188,575 shares of the company's stock, valued at $10,132,574,604.75. The trade was a 1.23% decrease in their ownership of the stock. 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 quarter. Insiders own 2.00% of the company's stock.

Broadcom Stock Up 0.5%

Shares of NASDAQ AVGO opened at $290.18 on Friday. The company has a current ratio of 1.08, a quick ratio of 0.98 and a debt-to-equity ratio of 0.89. The business has a 50-day moving average of $260.05 and a 200-day moving average of $222.18. The firm has a market capitalization of $1.36 trillion, a price-to-earnings ratio of 108.68, a PEG ratio of 2.05 and a beta of 1.12. Broadcom Inc. has a 12 month low of $128.50 and a 12 month high of $292.59.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings results on Thursday, June 5th. The semiconductor manufacturer reported $1.58 EPS for the quarter, topping analysts' consensus estimates of $1.57 by $0.01. The business had revenue of $15 billion during 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 quarterly revenue was up 20.2% compared to the same quarter last year. During the same quarter in the previous year, the company earned $10.96 EPS. Sell-side analysts expect 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. Investors of record on Friday, June 20th were given a $0.59 dividend. The ex-dividend date was Friday, June 20th. This represents a $2.36 annualized dividend and a yield of 0.81%. Broadcom's dividend payout ratio (DPR) is presently 88.39%.

Broadcom declared that its Board of Directors has approved a share repurchase plan on Monday, April 7th that allows the company to buyback $10.00 billion in outstanding shares. This buyback authorization allows the semiconductor manufacturer to purchase up to 1.4% of its stock through open market purchases. Stock buyback plans are typically a sign that the company's board of directors believes its shares are 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.

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