Mackenzie Financial Corp Reduces Position in Broadcom Inc. (NASDAQ:AVGO)

Key Points

• Mackenzie Financial Corp reduced its holdings in Broadcom Inc. by 15.9%, now owning approximately 2.27 million shares valued at $379.7 million after selling 427,718 shares in Q1.
• Overall, Broadcom has a consensus rating of "Buy" from analysts, with an average target price of $292.08.
• Broadcom announced a quarterly dividend of $0.59 per share, representing an annual yield of 0.81%, and has a share buyback plan of $10 billion.

Mackenzie Financial Corp cut its position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 15.9% in the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 2,267,976 shares of the semiconductor manufacturer's stock after selling 427,718 shares during the period. Mackenzie Financial Corp's holdings in Broadcom were worth $379,727,000 at the end of the most recent quarter.

A number of other large investors have also recently made changes to their positions in AVGO. True Wealth Design LLC boosted its position in Broadcom by 7.2% in the 4th quarter. True Wealth Design LLC now owns 712 shares of the semiconductor manufacturer's stock valued at $165,000 after buying an additional 48 shares during the period. Mizuho Bank Ltd. boosted its position in Broadcom by 7.1% in the 4th quarter. Mizuho Bank Ltd. now owns 750 shares of the semiconductor manufacturer's stock valued at $174,000 after buying an additional 50 shares during the period. Fulton Breakefield Broenniman LLC boosted its position in Broadcom by 2.4% in the 1st quarter. Fulton Breakefield Broenniman LLC now owns 2,130 shares of the semiconductor manufacturer's stock valued at $357,000 after buying an additional 50 shares during the period. American Financial Advisors LLC boosted its position in Broadcom by 3.8% in the 1st quarter. American Financial Advisors LLC now owns 1,432 shares of the semiconductor manufacturer's stock valued at $240,000 after buying an additional 52 shares during the period. Finally, First Bank & Trust boosted its position in Broadcom by 1.9% in the 1st quarter. First Bank & Trust now owns 2,945 shares of the semiconductor manufacturer's stock valued at $493,000 after buying an additional 55 shares during the period. 76.43% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several equities research analysts have recently commented on AVGO shares. The Goldman Sachs Group started coverage on shares of Broadcom in a report on Thursday, July 10th. They issued a "buy" rating and a $315.00 price target for the company. Barclays boosted their price target on shares of Broadcom from $215.00 to $265.00 and gave the company an "overweight" rating in a report on Monday, June 9th. Susquehanna boosted their price target on shares of Broadcom from $280.00 to $300.00 and gave the company a "positive" rating in a report on Friday, June 6th. Evercore ISI restated an "outperform" rating and issued a $304.00 price target (up previously from $267.00) on shares of Broadcom in a report on Friday, June 6th. Finally, Seaport Res Ptn upgraded shares of Broadcom to a "strong-buy" rating in a report on Wednesday, April 30th. One equities research analyst has rated the stock with a hold rating, twenty-seven have issued a buy rating and two have given a strong buy rating to the company. Based on data from MarketBeat.com, Broadcom currently has a consensus rating of "Buy" and an average target price of $292.08.

Broadcom Stock Performance

Shares of NASDAQ AVGO opened at $290.18 on Monday. The company's fifty day moving average price is $260.05 and its 200 day moving average price is $222.08. Broadcom Inc. has a 1 year low of $128.50 and a 1 year high of $292.59. The company has a market capitalization of $1.36 trillion, a PE ratio of 108.68, a price-to-earnings-growth ratio of 2.06 and a beta of 1.12. The company has a debt-to-equity ratio of 0.89, a quick ratio of 0.98 and a current ratio of 1.08.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its quarterly earnings results on Thursday, June 5th. The semiconductor manufacturer reported $1.58 earnings per share (EPS) for the quarter, topping 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 for the quarter, compared to the consensus estimate of $14.98 billion. During the same period in the prior year, the firm posted $10.96 earnings per share. The firm's quarterly revenue was up 20.2% compared to the same quarter last year. On average, research analysts predict that Broadcom Inc. will post 5.38 earnings per share for the current year.

Broadcom Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, June 30th. Investors of record on Friday, June 20th were issued a dividend of $0.59 per share. This represents a $2.36 dividend on an annualized basis and a yield of 0.81%. The ex-dividend date of this dividend was Friday, June 20th. Broadcom's dividend payout ratio (DPR) is presently 88.39%.

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

Insider Activity

In other Broadcom news, CEO Hock E. Tan sold 40,000 shares of the company's 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 completion of the transaction, the chief executive officer directly owned 482,836 shares in the company, valued at approximately $129,540,070.44. This represents a 7.65% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, Director Henry Samueli sold 473,898 shares of the company's 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 owned 38,188,575 shares of the company's stock, valued at $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. Insiders sold a total of 830,516 shares of company stock valued at $217,224,641 in the last three months. Corporate insiders own 2.00% of the company's stock.

Broadcom Profile

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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