Maxi Investments CY Ltd Purchases 24,961 Shares of Broadcom Inc. (NASDAQ:AVGO)

Key Points

• Maxi Investments CY Ltd increased its stake in Broadcom Inc. by 72.4%, holding 59,424 shares valued at nearly $9.95 million, making it the 12th biggest position in their portfolio.
• Broadcom reported quarterly earnings of $1.58 EPS, surpassing expectations with revenue of $15 billion, which is a 20.2% increase year-over-year.
• The company's Board approved a $10 billion stock buyback program, indicating management believes the stock is undervalued, with an average price target of $294.92 among analysts.

Maxi Investments CY Ltd lifted its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 72.4% in the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 59,424 shares of the semiconductor manufacturer's stock after purchasing an additional 24,961 shares during the period. Broadcom accounts for approximately 2.0% of Maxi Investments CY Ltd's holdings, making the stock its 12th largest position. Maxi Investments CY Ltd's holdings in Broadcom were worth $9,949,000 as of its most recent SEC filing.

A number of other institutional investors also recently bought and sold shares of the stock. Barnes Dennig Private Wealth Management LLC bought a new position in Broadcom in the 1st quarter worth $25,000. Cheviot Value Management LLC purchased a new stake in shares of Broadcom during the first quarter worth about $25,000. Inlight Wealth Management LLC purchased a new stake in shares of Broadcom during the first quarter worth about $26,000. Sunbeam Capital Management LLC bought a new stake in Broadcom during the 4th quarter valued at approximately $28,000. Finally, Vermillion Wealth Management Inc. purchased a new position in Broadcom in the 4th quarter worth approximately $30,000. 76.43% of the stock is owned by institutional investors.

Analyst Ratings Changes

AVGO has been the topic of several recent analyst reports. Wells Fargo & Company lifted their price objective on shares of Broadcom from $230.00 to $255.00 and gave the company an "equal weight" rating in a research report on Friday, June 6th. Erste Group Bank raised Broadcom from a "hold" rating to a "buy" rating in a report on Thursday, June 5th. Evercore ISI reissued an "outperform" rating and set a $304.00 price target (up from $267.00) on shares of Broadcom in a research note on Friday, June 6th. The Goldman Sachs Group initiated coverage on Broadcom in a report on Thursday, July 10th. They set a "buy" rating and a $315.00 price target for the company. Finally, Oppenheimer boosted their price target on shares of Broadcom from $265.00 to $305.00 and gave the stock an "outperform" rating in a research report on Tuesday, July 15th. One investment analyst has rated the stock with a hold rating, twenty-seven have assigned a buy rating and three have assigned a strong buy rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Buy" and an average price target of $294.92.

Broadcom Trading Up 3.0%

Shares of AVGO traded up $8.74 during trading hours on Wednesday, reaching $301.67. 17,275,421 shares of the company traded hands, compared to its average volume of 17,267,806. The stock's fifty day moving average price is $269.08 and its 200 day moving average price is $225.39. The company has a current ratio of 1.08, a quick ratio of 0.98 and a debt-to-equity ratio of 0.89. The firm has a market cap of $1.42 trillion, a price-to-earnings ratio of 112.99, a PEG ratio of 2.08 and a beta of 1.15. Broadcom Inc. has a 12-month low of $134.90 and a 12-month high of $306.95.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its earnings results on Thursday, June 5th. The semiconductor manufacturer reported $1.58 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 business 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 earned $10.96 EPS. The company's revenue for the quarter was up 20.2% compared to the same quarter last year. Sell-side analysts forecast that Broadcom Inc. will post 5.38 earnings per share for the current year.

Broadcom Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, June 30th. Stockholders of record on Friday, June 20th were given a dividend of $0.59 per share. The ex-dividend date of this dividend was Friday, June 20th. This represents a $2.36 dividend on an annualized basis and a dividend yield of 0.8%. Broadcom's dividend payout ratio is presently 88.39%.

Insider Activity

In related news, insider Charlie B. Kawwas sold 10,000 shares of the company's stock in a transaction dated Wednesday, June 11th. The shares were sold at an average price of $252.88, for a total value of $2,528,800.00. Following the completion of the sale, the insider directly owned 789,784 shares of the company's stock, valued at $199,720,577.92. This represents a 1.25% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Hock E. Tan sold 117,758 shares of the company's stock in a transaction that occurred on Thursday, June 12th. The stock was sold at an average price of $252.91, for a total transaction of $29,782,175.78. Following the completion of the sale, the chief executive officer directly owned 1,014,152 shares of the company's stock, valued at $256,489,182.32. The trade was a 10.40% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 830,516 shares of company stock valued at $217,224,641. Company 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.