First American Trust FSB Raises Position in Broadcom Inc. (NASDAQ:AVGO)

Key Points

• First American Trust FSB has significantly increased its stake in Broadcom Inc. by 217.3% during the first quarter, now holding shares valued at approximately $6.83 million.
• CEO Hock E. Tan recently sold 40,000 shares for over $10.7 million, reflecting a 7.65% reduction in his ownership of the company’s stock.
• Broadcom’s stock recently opened at $304.97 and has a market capitalization of $1.43 trillion, with a strong buy consensus rating and an average price target of $294.92 from analysts.

First American Trust FSB lifted its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 217.3% during the 1st quarter, according to the company in its most recent 13F filing with the SEC. The firm owned 40,790 shares of the semiconductor manufacturer's stock after buying an additional 27,933 shares during the quarter. First American Trust FSB's holdings in Broadcom were worth $6,829,000 as of its most recent filing with the SEC.

Several other hedge funds have also modified their holdings of AVGO. Sunbeam Capital Management LLC acquired a new stake in Broadcom during the 4th quarter valued at approximately $28,000. Vermillion Wealth Management Inc. acquired a new stake in Broadcom during the 4th quarter valued at approximately $30,000. Barnes Dennig Private Wealth Management LLC acquired a new stake in Broadcom during the 1st quarter valued at approximately $25,000. Cheviot Value Management LLC acquired a new stake in Broadcom during the 1st quarter valued at approximately $25,000. Finally, Inlight Wealth Management LLC acquired a new stake in Broadcom during the 1st quarter valued at approximately $26,000. 76.43% of the stock is currently owned by hedge funds and other institutional investors.

Broadcom Price Performance

Shares of NASDAQ:AVGO traded up $8.93 during trading on Tuesday, hitting $312.83. 17,557,896 shares of the company were exchanged, compared to its average volume of 26,383,006. The company has a market capitalization of $1.47 trillion, a P/E ratio of 117.16, a price-to-earnings-growth ratio of 2.17 and a beta of 1.15. Broadcom Inc. has a 1-year low of $134.90 and a 1-year high of $313.44. The business's 50 day moving average is $273.98 and its 200-day moving average is $227.04. 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 results on Thursday, June 5th. The semiconductor manufacturer reported $1.58 EPS 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 business's quarterly revenue was up 20.2% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $10.96 earnings per share. Equities analysts forecast that Broadcom Inc. will post 5.38 earnings per share for the current year.

Broadcom Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 30th. Shareholders of record on Friday, June 20th were paid a $0.59 dividend. The ex-dividend date was Friday, June 20th. This represents a $2.36 annualized dividend and a yield of 0.8%. Broadcom's dividend payout ratio (DPR) is 88.39%.

Analyst Ratings Changes

AVGO has been the subject of several research reports. Mizuho lifted their target price on Broadcom from $315.00 to $320.00 and gave the stock an "outperform" rating in a research report on Wednesday, July 16th. Bank of America lifted their target price on Broadcom from $240.00 to $300.00 and gave the stock a "buy" rating in a research report on Friday, June 6th. Redburn Atlantic initiated coverage on Broadcom in a research report on Wednesday, May 28th. They issued a "buy" rating and a $301.00 target price for the company. Arete Research upgraded Broadcom to a "strong-buy" rating in a research report on Monday, July 28th. Finally, JPMorgan Chase & Co. lifted their target price on Broadcom from $250.00 to $325.00 and gave the stock an "overweight" rating in a research report on Friday, June 6th. Two research analysts have rated the stock with a hold rating, twenty-six have issued a buy rating and three have issued a strong buy rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Buy" and a consensus price target of $294.92.

Insider Transactions at Broadcom

In related news, CFO Kirsten M. Spears sold 36,350 shares of the firm's stock in a transaction that occurred on Tuesday, June 24th. The shares were sold at an average price of $261.27, for a total value of $9,497,164.50. Following the completion of the transaction, the chief financial officer directly owned 325,587 shares of the company's stock, valued at approximately $85,066,115.49. This trade represents a 10.04% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Gayla J. Delly sold 3,000 shares of the firm's stock in a transaction that occurred on Thursday, June 26th. The stock was sold at an average price of $265.13, for a total transaction of $795,390.00. Following the completion of the transaction, the director directly owned 33,352 shares of the company's stock, valued at approximately $8,842,615.76. This trade represents a 8.25% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 830,516 shares of company stock worth $217,224,641. Company insiders own 2.00% of the company's stock.

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.