Mesirow Financial Investment Management Inc. Has $38.54 Million Stock Holdings in Broadcom Inc. (NASDAQ:AVGO)

Key Points

• Mesirow Financial Investment Management Inc. reduced its holdings in Broadcom Inc. by 3.7%, now owning 230,159 shares worth approximately $38.54 million, making it its 26th largest holding.
• Significant increases in stakes from other institutional investors, with Price T Rowe Associates Inc. raising their position by 46.9% during the fourth quarter.
• Analysts have a consensus rating of "Buy" for Broadcom, with a target price averaging $292.08, following positive earnings that exceeded expectations.

Mesirow Financial Investment Management Inc. decreased its holdings in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 3.7% during the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 230,159 shares of the semiconductor manufacturer's stock after selling 8,899 shares during the quarter. Broadcom comprises approximately 0.7% of Mesirow Financial Investment Management Inc.'s portfolio, making the stock its 26th biggest holding. Mesirow Financial Investment Management Inc.'s holdings in Broadcom were worth $38,536,000 as of its most recent SEC filing.

A number of other hedge funds and other institutional investors have also bought and sold shares of the business. Barnes Dennig Private Wealth Management LLC bought a new position in shares of Broadcom in the first quarter worth $25,000. Inlight Wealth Management LLC bought a new position in shares of Broadcom during the first quarter valued at about $26,000. Sunbeam Capital Management LLC bought a new position in shares of Broadcom during the fourth quarter valued at about $28,000. Vermillion Wealth Management Inc. bought a new position in shares of Broadcom during the fourth quarter valued at about $30,000. Finally, Wood Tarver Financial Group LLC grew its stake in shares of Broadcom by 342.5% during the first quarter. Wood Tarver Financial Group LLC now owns 177 shares of the semiconductor manufacturer's stock valued at $30,000 after buying an additional 137 shares during the last quarter. Institutional investors own 76.43% of the company's stock.

Insider Transactions at Broadcom

In related news, CEO Hock E. Tan sold 40,000 shares of Broadcom stock in a transaction dated Thursday, June 26th. The shares were sold at an average price of $268.29, for a total value of $10,731,600.00. Following the sale, the chief executive officer directly owned 482,836 shares in the company, valued at $129,540,070.44. This trade represents a 7.65% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Justine Page sold 800 shares of Broadcom stock in a transaction dated Monday, July 14th. The shares were sold at an average price of $274.30, for a total transaction of $219,440.00. Following the completion of the sale, the director owned 24,582 shares in the company, valued at approximately $6,742,842.60. This represents a 3.15% 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 worth $217,224,641 over the last 90 days. Corporate insiders own 2.00% of the company's stock.

Broadcom Stock Down 1.7%

NASDAQ AVGO traded down $5.06 during trading hours on Friday, reaching $288.64. 21,405,316 shares of the company traded hands, compared to its average volume of 26,886,023. Broadcom Inc. has a 12 month low of $128.50 and a 12 month high of $306.95. 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 stock has a market capitalization of $1.36 trillion, a PE ratio of 108.10, a PEG ratio of 2.15 and a beta of 1.12. The company has a 50 day moving average of $265.36 and a two-hundred day moving average of $224.11.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings data on Thursday, June 5th. The semiconductor manufacturer reported $1.58 EPS for the quarter, beating 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 EPS. The firm's revenue was up 20.2% compared to the same quarter last year. As a group, equities analysts expect that Broadcom Inc. will post 5.38 earnings per share for the current year.

Broadcom announced that its board has initiated a share buyback plan on Monday, April 7th that permits the company to buyback $10.00 billion in outstanding shares. This buyback authorization permits the semiconductor manufacturer to reacquire up to 1.4% of its stock through open market purchases. Stock buyback plans are usually a sign that the company's board of directors believes its shares are undervalued.

Broadcom Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 30th. Investors of record on Friday, June 20th were given a $0.59 dividend. The ex-dividend date was Friday, June 20th. This represents a $2.36 annualized dividend and a yield of 0.8%. Broadcom's dividend payout ratio (DPR) is currently 88.39%.

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on AVGO shares. Arete Research raised Broadcom to a "strong-buy" rating in a research note on Monday. UBS Group raised their price objective on Broadcom from $270.00 to $290.00 and gave the company a "buy" rating in a research note on Friday, June 6th. The Goldman Sachs Group initiated coverage on shares of Broadcom in a report on Thursday, July 10th. They set a "buy" rating and a $315.00 target price for the company. Benchmark increased their target price on shares of Broadcom from $255.00 to $315.00 and gave the stock a "buy" rating in a report on Friday, June 6th. Finally, Truist Financial set a $295.00 target price on shares of Broadcom and gave the stock a "buy" rating in a report on Friday, June 6th. One analyst has rated the stock with a hold rating, twenty-seven have given a buy rating and three have given a strong buy rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Buy" and an average price target of $294.92.

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.