King Luther Capital Management Corp Increases Stock Position in Broadcom Inc. (NASDAQ:AVGO)

Key Points

• King Luther Capital Management Corp has increased its holdings in Broadcom Inc. by 1.2%, owning a total of 1,469,848 shares valued at approximately $246 million.
• Broadcom's stock currently has a strong analyst sentiment, with twenty-six analysts giving it a buy rating and an average price target of $294.92.
• Recently, Broadcom announced a quarterly dividend of $0.59 per share, contributing to an annualized yield of 0.8%.

King Luther Capital Management Corp raised its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 1.2% during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 1,469,848 shares of the semiconductor manufacturer's stock after acquiring an additional 17,365 shares during the period. Broadcom makes up 1.1% of King Luther Capital Management Corp's portfolio, making the stock its 24th biggest position. King Luther Capital Management Corp's holdings in Broadcom were worth $246,097,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors also recently modified their holdings of the company. Brighton Jones LLC raised its stake in shares of Broadcom by 21.8% in the fourth quarter. Brighton Jones LLC now owns 29,683 shares of the semiconductor manufacturer's stock worth $6,882,000 after buying an additional 5,322 shares during the period. Revolve Wealth Partners LLC boosted its holdings in shares of Broadcom by 10.4% in the 4th quarter. Revolve Wealth Partners LLC now owns 7,997 shares of the semiconductor manufacturer's stock worth $1,854,000 after purchasing an additional 756 shares during the period. Bank Pictet & Cie Europe AG boosted its holdings in shares of Broadcom by 16.4% in the 4th quarter. Bank Pictet & Cie Europe AG now owns 221,199 shares of the semiconductor manufacturer's stock worth $51,283,000 after purchasing an additional 31,225 shares during the period. Highview Capital Management LLC DE boosted its holdings in shares of Broadcom by 1.3% in the 4th quarter. Highview Capital Management LLC DE now owns 25,522 shares of the semiconductor manufacturer's stock worth $5,917,000 after purchasing an additional 322 shares during the period. Finally, Renaissance Technologies LLC purchased a new position in shares of Broadcom in the 4th quarter worth approximately $602,000. 76.43% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of research firms recently issued reports on AVGO. Cowen restated a "buy" rating on shares of Broadcom in a report on Friday, June 6th. KeyCorp upped their target price on Broadcom from $315.00 to $330.00 and gave the stock an "overweight" rating in a report on Tuesday, July 8th. Mizuho lifted their price objective on Broadcom from $315.00 to $320.00 and gave the company an "outperform" rating in a report on Wednesday, July 16th. Redburn Atlantic began coverage on Broadcom in a report on Wednesday, May 28th. They issued a "buy" rating and a $301.00 price objective for the company. Finally, Benchmark boosted their price target on Broadcom from $255.00 to $315.00 and gave the stock a "buy" rating in a research report on Friday, June 6th. Two investment analysts have rated the stock with a hold rating, twenty-six have given a buy rating and three have issued a strong buy rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Buy" and an average target price of $294.92.

Insider Buying and Selling

In other Broadcom news, Director Justine Page sold 800 shares of the firm's stock in a transaction on Monday, July 14th. The stock was sold at an average price of $274.30, for a total value of $219,440.00. Following the sale, the director directly owned 24,582 shares in the company, valued at $6,742,842.60. This trade represents a 3.15% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Henry Samueli sold 473,898 shares of the business's stock in a transaction dated Wednesday, June 25th. The shares were sold at an average price of $265.33, for a total value of $125,739,356.34. Following the completion of the sale, the director directly 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 sold 829,716 shares of company stock valued at $217,040,489 over the last 90 days. 2.00% of the stock is currently owned by corporate insiders.

Broadcom Price Performance

NASDAQ AVGO traded down $4.85 during trading hours on Wednesday, reaching $307.98. The company's stock had a trading volume of 7,217,627 shares, compared to its average volume of 26,256,646. The firm has a market capitalization of $1.45 trillion, a price-to-earnings ratio of 115.46, a P/E/G ratio of 2.16 and a beta of 1.15. Broadcom Inc. has a 1-year low of $134.90 and a 1-year high of $317.35. 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 company's 50-day moving average is $275.10 and its two-hundred day moving average is $227.64.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings results on Thursday, June 5th. The semiconductor manufacturer reported $1.58 earnings per share for the quarter, topping analysts' consensus estimates of $1.57 by $0.01. Broadcom had a return on equity of 35.49% and a net margin of 22.64%. The company had revenue of $15 billion during the quarter, compared to analysts' expectations 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. On average, equities analysts predict that Broadcom Inc. will post 5.38 EPS for the current year.

Broadcom Dividend Announcement

The firm also recently declared 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 dividend on an annualized basis and a yield of 0.8%. Broadcom's dividend payout ratio (DPR) 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.