Mediolanum International Funds Ltd Cuts Holdings in Broadcom Inc. (NASDAQ:AVGO)

Key Points

• Mediolanum International Funds Ltd has reduced its stake in Broadcom Inc. by 7.1%, owning 589,063 shares valued at approximately $99.6 million, making it the firm's 10th largest holding.
• Broadcom recently reported earnings per share of $1.58, exceeding analyst estimates, with revenues reaching $15 billion for the quarter, a year-over-year increase of 20.2%.
• The company announced a quarterly dividend of $0.59 per share, representing an annualized yield of 0.81%, with a dividend payout ratio of 88.39%.

Mediolanum International Funds Ltd lowered its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 7.1% in the 1st quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 589,063 shares of the semiconductor manufacturer's stock after selling 45,049 shares during the quarter. Broadcom comprises about 1.4% of Mediolanum International Funds Ltd's portfolio, making the stock its 10th biggest holding. Mediolanum International Funds Ltd's holdings in Broadcom were worth $99,622,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors and hedge funds have also recently bought and sold shares of the stock. True Wealth Design LLC lifted its position in shares of Broadcom by 7.2% during the 4th quarter. True Wealth Design LLC now owns 712 shares of the semiconductor manufacturer's stock valued at $165,000 after acquiring an additional 48 shares during the last quarter. Mizuho Bank Ltd. grew its holdings in shares of Broadcom by 7.1% in the 4th quarter. Mizuho Bank Ltd. now owns 750 shares of the semiconductor manufacturer's stock worth $174,000 after acquiring an additional 50 shares during the last quarter. Fulton Breakefield Broenniman LLC raised its position in shares of Broadcom by 2.4% during the first quarter. Fulton Breakefield Broenniman LLC now owns 2,130 shares of the semiconductor manufacturer's stock worth $357,000 after purchasing an additional 50 shares during the period. American Financial Advisors LLC raised its position in shares of Broadcom by 3.8% during the first quarter. American Financial Advisors LLC now owns 1,432 shares of the semiconductor manufacturer's stock worth $240,000 after purchasing an additional 52 shares during the period. Finally, First Bank & Trust lifted its holdings in shares of Broadcom by 1.9% during the first quarter. First Bank & Trust now owns 2,945 shares of the semiconductor manufacturer's stock valued at $493,000 after purchasing an additional 55 shares during the last quarter. Institutional investors own 76.43% of the company's stock.

Broadcom Stock Up 0.5%

AVGO stock opened at $290.18 on Friday. The firm has a market cap of $1.36 trillion, a PE ratio of 108.68, a PEG ratio of 2.05 and a beta of 1.12. Broadcom Inc. has a 1 year low of $128.50 and a 1 year high of $292.59. The company has a fifty day simple moving average of $260.05 and a 200 day simple moving average of $222.18. The company has a current ratio of 1.08, a quick ratio of 0.98 and a debt-to-equity ratio of 0.89.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its earnings results on Thursday, June 5th. The semiconductor manufacturer reported $1.58 earnings per share for the quarter, beating the consensus estimate 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 for the quarter, compared to analyst estimates of $14.98 billion. During the same period last year, the company earned $10.96 earnings per share. The business's revenue was up 20.2% compared to the same quarter last year. Sell-side analysts anticipate that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Dividend Announcement

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

Broadcom declared that its board has approved a stock buyback plan on Monday, April 7th that authorizes the company to buyback $10.00 billion in shares. This buyback authorization authorizes the semiconductor manufacturer to purchase up to 1.4% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's board of directors believes its shares are undervalued.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on AVGO. Redburn Atlantic began coverage on Broadcom in a research note on Wednesday, May 28th. They issued a "buy" rating and a $301.00 price target on the stock. Susquehanna upped their price objective on shares of Broadcom from $280.00 to $300.00 and gave the company a "positive" rating in a research note on Friday, June 6th. Wells Fargo & Company lifted their target price on shares of Broadcom from $230.00 to $255.00 and gave the stock an "equal weight" rating in a research report on Friday, June 6th. Wall Street Zen upgraded shares of Broadcom from a "hold" rating to a "buy" rating in a report on Saturday, July 5th. Finally, Mizuho raised their price objective on shares of Broadcom from $315.00 to $320.00 and gave the stock an "outperform" rating in a research note on Wednesday, July 16th. One equities research analyst has rated the stock with a hold rating, twenty-seven have given a buy rating and two have given a strong buy rating to the company's stock. Based on data from MarketBeat.com, Broadcom has a consensus rating of "Buy" and a consensus price target of $292.08.

Insider Activity

In related news, Director Henry Samueli sold 473,898 shares of the company's stock in a transaction on Wednesday, June 25th. The shares were sold at an average price of $265.33, for a total transaction 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 approximately $10,132,574,604.75. This represents a 1.23% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Kirsten M. Spears sold 36,350 shares of the firm's stock in a transaction on Tuesday, June 24th. The shares were sold at an average price of $261.27, for a total transaction of $9,497,164.50. Following the completion of the transaction, the chief financial officer owned 325,587 shares in the company, valued at $85,066,115.49. The trade was a 10.04% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 830,516 shares of company stock valued at $217,224,641. Insiders own 2.00% of the company's stock.

Broadcom Company 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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