First National Advisers LLC Boosts Stock Position in Broadcom Inc. (NASDAQ:AVGO)

Key Points

• First National Advisers LLC increased its holdings in Broadcom Inc. by 370.8% during the first quarter, owning 9,651 shares valued at $1.615 million after purchasing an additional 7,601 shares.
• Broadcom reported earnings of $1.58 per share, surpassing consensus estimates, with a revenue of $15 billion, marking a 20.2% year-over-year increase.
• The company has initiated a $10 billion share repurchase plan, indicating the board's belief that its stock is undervalued.

First National Advisers LLC increased its holdings in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 370.8% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 9,651 shares of the semiconductor manufacturer's stock after purchasing an additional 7,601 shares during the quarter. First National Advisers LLC's holdings in Broadcom were worth $1,615,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds also recently bought and sold shares of the business. Sunbeam Capital Management LLC bought a new position in shares of Broadcom during the fourth quarter valued at approximately $28,000. Vermillion Wealth Management Inc. purchased a new position in Broadcom during the 4th quarter valued at $30,000. Barnes Dennig Private Wealth Management LLC purchased a new position in Broadcom during the 1st quarter valued at $25,000. Inlight Wealth Management LLC bought a new position in Broadcom in the 1st quarter worth $26,000. Finally, Mpwm Advisory Solutions LLC purchased a new stake in shares of Broadcom in the 4th quarter worth about $37,000. Hedge funds and other institutional investors own 76.43% of the company's stock.

Broadcom Stock Performance

AVGO opened at $290.18 on Friday. The company has a 50 day simple moving average of $260.05 and a two-hundred day simple moving average of $222.13. 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 firm has a market cap of $1.36 trillion, a P/E ratio of 108.68, a PEG ratio of 2.06 and a beta of 1.12. Broadcom Inc. has a 1-year low of $128.50 and a 1-year high of $292.59.

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

Broadcom Dividend Announcement

The firm also recently disclosed 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 0.81%. The ex-dividend date of this dividend was Friday, June 20th. Broadcom's dividend payout ratio (DPR) is 88.39%.

Broadcom announced that its Board of Directors has initiated a share repurchase plan on Monday, April 7th that authorizes the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization authorizes the semiconductor manufacturer to purchase up to 1.4% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company's board believes its stock is undervalued.

Analyst Ratings Changes

Several equities analysts recently issued reports on AVGO shares. Morgan Stanley boosted their price target on shares of Broadcom from $260.00 to $270.00 and gave the company an "overweight" rating in a research report on Friday, June 6th. Barclays boosted their target price on shares of Broadcom from $215.00 to $265.00 and gave the company an "overweight" rating in a report on Monday, June 9th. Bank of America increased their price target on shares of Broadcom from $240.00 to $300.00 and gave the stock a "buy" rating in a research note on Friday, June 6th. Hsbc Global Res raised shares of Broadcom from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, June 24th. Finally, Wall Street Zen upgraded shares of Broadcom from a "hold" rating to a "buy" rating in a report on Saturday, July 5th. One research analyst has rated the stock with a hold rating, twenty-seven have given a buy rating and two have assigned a strong buy rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Buy" and a consensus target price of $292.08.

Insider Activity

In other Broadcom news, Director Gayla J. Delly sold 3,000 shares of the stock in a transaction that occurred on Thursday, June 26th. The shares were sold at an average price of $265.13, for a total transaction of $795,390.00. Following the completion of the sale, the director directly owned 33,352 shares of the company's stock, valued at $8,842,615.76. This trade represents a 8.25% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Henry Samueli sold 473,898 shares of Broadcom stock in a transaction that occurred on Wednesday, June 25th. The shares were sold at an average price of $265.33, for a total transaction of $125,739,356.34. Following the sale, the director owned 38,188,575 shares in the company, valued at approximately $10,132,574,604.75. The trade was a 1.23% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 830,516 shares of company stock valued at $217,224,641 in the last three months. 2.00% of the stock is currently owned by insiders.

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.

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