Mather Group LLC. Raises Holdings in Broadcom Inc. $AVGO

Key Points

• Mather Group LLC increased its stake in Broadcom by 8.1% in Q4 to 59,620 shares, worth about $20.63 million, and overall institutional investors own roughly 76.43% of the stock.
• Broadcom beat estimates for the quarter with $2.05 EPS vs. $2.03 expected and revenue of $19.31 billion vs. $19.10 billion, a 29.5% year‑over‑year revenue increase and strong margins (net margin 36.57%).
• The company announced a quarterly dividend of $0.65 ($2.60 annual, ~0.9% yield; ex‑dividend Mar 23, paid Mar 31), while insiders have sold sizable positions recently and analysts hold a consensus "Moderate Buy" with a $435.30 price target.

Mather Group LLC. increased its position in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 8.1% during the fourth quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor owned 59,620 shares of the semiconductor manufacturer's stock after buying an additional 4,442 shares during the period. Mather Group LLC.'s holdings in Broadcom were worth $20,634,000 at the end of the most recent quarter.

A number of other hedge funds also recently made changes to their positions in the company. Miller Global Investments LLC bought a new stake in Broadcom in the 4th quarter worth approximately $31,000. JCIC Asset Management Inc. bought a new position in shares of Broadcom during the 3rd quarter valued at approximately $31,000. Teachers Insurance & Annuity Association of America bought a new position in shares of Broadcom during the 2nd quarter valued at approximately $28,000. Manning & Napier Advisors LLC purchased a new position in shares of Broadcom in the third quarter valued at $34,000. Finally, Navigoe LLC grew its holdings in shares of Broadcom by 515.0% in the third quarter. Navigoe LLC now owns 123 shares of the semiconductor manufacturer's stock valued at $40,000 after purchasing an additional 103 shares in the last quarter. 76.43% of the stock is currently owned by hedge funds and other institutional investors.

Broadcom Stock Performance

Shares of Broadcom stock opened at $293.41 on Tuesday. The stock's fifty day moving average is $325.83 and its two-hundred day moving average is $344.28. The company has a market capitalization of $1.39 trillion, a PE ratio of 57.31, a price-to-earnings-growth ratio of 0.64 and a beta of 1.22. The company has a quick ratio of 1.73, a current ratio of 1.90 and a debt-to-equity ratio of 0.80. Broadcom Inc. has a 52 week low of $138.10 and a 52 week high of $414.61.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share for the quarter, topping the consensus estimate of $2.03 by $0.02. The business had revenue of $19.31 billion during the quarter, compared to the consensus estimate of $19.10 billion. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.The business's revenue for the quarter was up 29.5% compared to the same quarter last year. During the same period last year, the company earned $1.60 earnings per share. As a group, analysts expect that Broadcom Inc. will post 5.38 earnings per share for the current year.

Broadcom Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Monday, March 23rd will be issued a dividend of $0.65 per share. The ex-dividend date is Monday, March 23rd. This represents a $2.60 dividend on an annualized basis and a yield of 0.9%. Broadcom's dividend payout ratio (DPR) is presently 50.78%.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on the stock. Wells Fargo & Company raised shares of Broadcom from an "equal weight" rating to an "overweight" rating and upped their price target for the company from $410.00 to $430.00 in a research note on Thursday, January 15th. Piper Sandler reissued an "overweight" rating and issued a $430.00 price objective (up from $375.00) on shares of Broadcom in a research note on Friday, December 12th. Wolfe Research upgraded shares of Broadcom from a "peer perform" rating to an "outperform" rating and set a $400.00 target price on the stock in a report on Friday, January 30th. UBS Group set a $475.00 price target on shares of Broadcom and gave the company a "buy" rating in a report on Monday, December 15th. Finally, DA Davidson upgraded Broadcom to a "hold" rating in a research report on Friday, February 13th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $435.30.

Insider Activity at Broadcom

In other Broadcom news, insider Mark David Brazeal sold 50,488 shares of the business's stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total value of $16,236,940.80. Following the completion of the sale, the insider directly owned 278,141 shares of the company's stock, valued at $89,450,145.60. The trade was a 15.36% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Hock E. Tan sold 70,000 shares of the company's stock in a transaction dated Tuesday, January 6th. The stock was sold at an average price of $347.30, for a total transaction of $24,311,000.00. Following the completion of the transaction, the chief executive officer owned 132,836 shares in the company, valued at $46,133,942.80. This represents a 34.51% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 403,049 shares of company stock worth $133,459,315 over the last ninety days. 1.90% of the stock is currently owned by company insiders.

About Broadcom

Broadcom Inc NASDAQ: AVGO is a global technology company that designs, develops and supplies semiconductor and infrastructure software solutions for a broad range of markets. The company's semiconductor business provides components and systems for wired and wireless communications, enterprise and cloud storage, networking and broadband access, serving original equipment manufacturers, cloud service providers, telecommunications carriers and industrial customers worldwide. Broadcom is headquartered in Irvine, California, and operates globally with research, development and sales organizations across North America, Europe and Asia.

On the semiconductor side, Broadcom's portfolio includes system-on-chip (SoC) and application-specific integrated circuit (ASIC) solutions, radio-frequency and connectivity components, Ethernet switching and PHY devices, storage adapters and controllers, optical transceivers and other networking silicon.

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