Galvin Gaustad & Stein LLC Acquires 1,088 Shares of Broadcom Inc. (NASDAQ:AVGO)

Key Points

• Galvin Gaustad & Stein LLC increased its holdings in Broadcom Inc. by 73.7%, owning 2,564 shares valued at $429,000, according to its latest SEC filing.
• Broadcom recently reported earnings of $1.58 per share, surpassing estimates and showing a 20.2% year-over-year revenue growth.
• The company announced a quarterly dividend of $0.59 per share, with an annual yield of 0.80% and a payout ratio of 88.39%.

Galvin Gaustad & Stein LLC increased its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 73.7% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 2,564 shares of the semiconductor manufacturer's stock after purchasing an additional 1,088 shares during the quarter. Galvin Gaustad & Stein LLC's holdings in Broadcom were worth $429,000 at the end of the most recent quarter.

Several other hedge funds have also modified their holdings of the stock. Barnes Dennig Private Wealth Management LLC bought a new position in shares of Broadcom during the first quarter worth $25,000. Inlight Wealth Management LLC bought a new stake in Broadcom in the 1st quarter valued at $26,000. Sunbeam Capital Management LLC bought a new stake in Broadcom in the 4th quarter valued at $28,000. Vermillion Wealth Management Inc. acquired a new stake in Broadcom in the 4th quarter valued at $30,000. Finally, Wood Tarver Financial Group LLC increased its stake in Broadcom by 342.5% in the 1st quarter. Wood Tarver Financial Group LLC now owns 177 shares of the semiconductor manufacturer's stock valued at $30,000 after buying an additional 137 shares during the last quarter. 76.43% of the stock is owned by institutional investors.

Insider Buying and Selling

In related news, CEO Hock E. Tan sold 40,000 shares of the stock in a transaction on Thursday, June 26th. The shares were sold at an average price of $268.29, for a total transaction of $10,731,600.00. Following the transaction, the chief executive officer directly owned 482,836 shares of the company's stock, valued at $129,540,070.44. This represents a 7.65% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Henry Samueli sold 473,898 shares of the stock in a transaction on Wednesday, June 25th. The stock was sold at an average price of $265.33, for a total transaction of $125,739,356.34. Following the transaction, the director directly owned 38,188,575 shares in the company, valued at approximately $10,132,574,604.75. This represents a 1.23% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 830,516 shares of company stock worth $217,224,641. Corporate insiders own 2.00% of the company's stock.

Analyst Ratings Changes

Several brokerages have issued reports on AVGO. 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. Arete Research upgraded shares of Broadcom to a "strong-buy" rating in a research note on Monday. Rosenblatt Securities boosted their price objective on shares of Broadcom from $223.00 to $340.00 and gave the stock a "buy" rating in a research note on Friday, June 6th. Evercore ISI restated an "outperform" rating and set a $304.00 price objective (up from $267.00) on shares of Broadcom in a research note on Friday, June 6th. Finally, Seaport Res Ptn upgraded shares of Broadcom to a "strong-buy" rating in a research note on Wednesday, April 30th. One research analyst has rated the stock with a hold rating, twenty-seven have assigned a buy rating and three have given a strong buy rating to the company. According to data from MarketBeat, Broadcom currently has an average rating of "Buy" and an average price target of $294.92.

Broadcom Trading Down 1.9%

NASDAQ AVGO traded down $5.49 on Friday, hitting $288.22. The company's stock had a trading volume of 11,189,826 shares, compared to its average volume of 26,811,488. 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 Inc. has a 1-year low of $128.50 and a 1-year high of $306.95. The company's 50-day moving average is $265.36 and its 200 day moving average is $224.11. The firm has a market cap of $1.36 trillion, a PE ratio of 108.02, a PEG ratio of 2.15 and a beta of 1.12.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings data on Thursday, June 5th. The semiconductor manufacturer reported $1.58 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 company had revenue of $15 billion for the quarter, compared to analyst estimates of $14.98 billion. During the same period in the prior year, the firm posted $10.96 EPS. The company's quarterly revenue was up 20.2% on a year-over-year basis. As a group, analysts predict that Broadcom Inc. will post 5.38 earnings per share for the current fiscal year.

Broadcom declared that its Board of Directors has initiated a stock buyback program on Monday, April 7th that authorizes the company to buyback $10.00 billion in outstanding shares. This buyback authorization authorizes the semiconductor manufacturer to purchase up to 1.4% of its shares through open market purchases. Shares buyback programs are typically an indication that the company's leadership believes its shares are undervalued.

Broadcom Announces Dividend

The company 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 0.8%. The ex-dividend date of this dividend was Friday, June 20th. Broadcom's dividend payout ratio is currently 88.39%.

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.