Dudley Capital Management LLC Buys 3,126 Shares of Broadcom Inc. (NASDAQ:AVGO)

Key Points

• Dudley Capital Management LLC increased its stake in Broadcom Inc. by 25.9%, owning a total of 15,196 shares worth approximately $2.54 million as of its latest SEC filing.
• In the past three months, insiders sold more than 830,516 shares of Broadcom stock, with Director Justine Page and CEO Hock E. Tan notably selling 800 and 40,000 shares, respectively.
• Analysts have raised Broadcom's price targets significantly, with a consensus rating of "Buy" and an average target price of $292.08, reflecting strong confidence in the company's future performance.

Dudley Capital Management LLC grew its position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 25.9% in the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 15,196 shares of the semiconductor manufacturer's stock after purchasing an additional 3,126 shares during the period. Broadcom comprises about 1.3% of Dudley Capital Management LLC's holdings, making the stock its 22nd largest holding. Dudley Capital Management LLC's holdings in Broadcom were worth $2,544,000 at the end of the most recent reporting period.

Several other hedge funds have also recently added to or reduced their stakes in AVGO. True Wealth Design LLC increased its stake in Broadcom by 7.2% in the 4th quarter. True Wealth Design LLC now owns 712 shares of the semiconductor manufacturer's stock worth $165,000 after buying an additional 48 shares in the last quarter. Mizuho Bank Ltd. grew its position in shares of Broadcom by 7.1% during the fourth quarter. Mizuho Bank Ltd. now owns 750 shares of the semiconductor manufacturer's stock valued at $174,000 after purchasing an additional 50 shares in the last quarter. Fulton Breakefield Broenniman LLC grew its position in shares of Broadcom by 2.4% during the first quarter. Fulton Breakefield Broenniman LLC now owns 2,130 shares of the semiconductor manufacturer's stock valued at $357,000 after purchasing an additional 50 shares in the last quarter. American Financial Advisors LLC grew its position in shares of Broadcom by 3.8% during the first quarter. American Financial Advisors LLC now owns 1,432 shares of the semiconductor manufacturer's stock valued at $240,000 after purchasing an additional 52 shares in the last quarter. Finally, First Bank & Trust grew its position in shares of Broadcom by 1.9% during the first quarter. First Bank & Trust now owns 2,945 shares of the semiconductor manufacturer's stock valued at $493,000 after purchasing an additional 55 shares in the last quarter. Institutional investors own 76.43% of the company's stock.

Wall Street Analyst Weigh In

AVGO has been the subject of a number of analyst reports. Hsbc Global Res raised shares of Broadcom from a "hold" rating to a "strong-buy" rating in a report on Tuesday, June 24th. Oppenheimer raised their price objective on shares of Broadcom from $265.00 to $305.00 and gave the stock an "outperform" rating in a research note on Tuesday, July 15th. KeyCorp lifted their price target on shares of Broadcom from $315.00 to $330.00 and gave the company an "overweight" rating in a research note on Tuesday, July 8th. Citigroup lifted their price target on shares of Broadcom from $285.00 to $315.00 and gave the company a "buy" rating in a research note on Monday, July 7th. Finally, Cowen reaffirmed a "buy" rating on shares of Broadcom in a research note on Friday, June 6th. One investment analyst has rated the stock with a hold rating, twenty-seven have issued a buy rating and two have assigned a strong buy rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Buy" and a consensus price target of $294.92.

Insider Buying and Selling at Broadcom

In other Broadcom news, CFO Kirsten M. Spears sold 56,310 shares of the company's stock in a transaction dated Wednesday, June 18th. The shares were sold at an average price of $251.75, for a total transaction of $14,176,042.50. Following the completion of the sale, the chief financial officer directly owned 361,937 shares of the company's stock, valued at approximately $91,117,639.75. This represents a 13.46% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Hock E. Tan sold 117,758 shares of the stock in a transaction that occurred on 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 directly owned 1,014,152 shares of the company's stock, valued at $256,489,182.32. This trade represents a 10.40% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 830,516 shares of company stock valued at $217,224,641. Corporate insiders own 2.00% of the company's stock.

Broadcom Price Performance

AVGO traded up $3.01 during midday trading on Wednesday, reaching $300.43. 7,393,836 shares of the company's stock were exchanged, compared to its average volume of 26,865,281. The business's 50-day moving average price is $262.64 and its 200 day moving average price is $223.09. The company has a debt-to-equity ratio of 0.89, a current ratio of 1.08 and a quick ratio of 0.98. The stock has a market capitalization of $1.41 trillion, a PE ratio of 112.50, a P/E/G ratio of 2.09 and a beta of 1.12. Broadcom Inc. has a 1-year low of $128.50 and a 1-year high of $302.19.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its earnings results on Thursday, June 5th. The semiconductor manufacturer reported $1.58 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.57 by $0.01. Broadcom had a net margin of 22.64% and a return on equity of 35.49%. The firm had revenue of $15 billion during the quarter, compared to the consensus estimate of $14.98 billion. During the same period in the previous year, the firm earned $10.96 earnings per share. Broadcom's revenue was up 20.2% compared to the same quarter last year. As a group, equities analysts anticipate that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

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 issued a $0.59 dividend. The ex-dividend date of this dividend was Friday, June 20th. This represents a $2.36 annualized dividend and a yield of 0.79%. Broadcom's dividend payout ratio is presently 88.39%.

Broadcom announced that its Board of Directors has approved a share buyback program on Monday, April 7th that permits the company to repurchase $10.00 billion in shares. This repurchase authorization permits the semiconductor manufacturer to repurchase up to 1.4% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company's leadership believes its shares are undervalued.

About Broadcom

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.