Broadcom Inc. (NASDAQ:AVGO) Shares Purchased by Morningstar Investment Management LLC

Key Points

• Morningstar Investment Management LLC increased its stake in Broadcom Inc. by 2,963.2% in the first quarter, acquiring a total of 48,398 shares valued at approximately $8.1 million.
• Multiple institutional investors have added to their positions in Broadcom, with hedge funds owning 76.43% of the company’s stock.
• Broadcom recently declared a quarterly dividend of $0.59 per share and authorized a $10 billion share repurchase program, indicating confidence in the company's value.

Morningstar Investment Management LLC grew its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 2,963.2% in the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 48,398 shares of the semiconductor manufacturer's stock after buying an additional 46,818 shares during the quarter. Broadcom accounts for about 0.7% of Morningstar Investment Management LLC's portfolio, making the stock its 21st largest holding. Morningstar Investment Management LLC's holdings in Broadcom were worth $8,103,000 as of its most recent filing with the Securities & Exchange Commission.

Several other institutional investors and hedge funds have also modified their holdings of the stock. TCTC Holdings LLC lifted its holdings in shares of Broadcom by 3.3% in the 1st quarter. TCTC Holdings LLC now owns 2,107 shares of the semiconductor manufacturer's stock valued at $353,000 after buying an additional 67 shares during the period. Kirtland Hills Capital Management LLC increased its stake in shares of Broadcom by 39.5% in the 1st quarter. Kirtland Hills Capital Management LLC now owns 6,168 shares of the semiconductor manufacturer's stock valued at $1,055,000 after purchasing an additional 1,748 shares in the last quarter. Meeder Advisory Services Inc. increased its stake in shares of Broadcom by 8.3% in the 1st quarter. Meeder Advisory Services Inc. now owns 98,120 shares of the semiconductor manufacturer's stock valued at $16,428,000 after purchasing an additional 7,499 shares in the last quarter. Lutz Financial Services LLC increased its stake in shares of Broadcom by 8.3% in the 1st quarter. Lutz Financial Services LLC now owns 1,219 shares of the semiconductor manufacturer's stock valued at $204,000 after purchasing an additional 93 shares in the last quarter. Finally, Fiera Capital Corp increased its stake in shares of Broadcom by 1.1% in the 1st quarter. Fiera Capital Corp now owns 12,084 shares of the semiconductor manufacturer's stock valued at $2,023,000 after purchasing an additional 137 shares in the last quarter. Institutional investors and hedge funds own 76.43% of the company's stock.

Broadcom Stock Down 1.7%

NASDAQ AVGO traded down $5.08 during trading on Friday, reaching $288.62. 13,810,947 shares of the company's stock were exchanged, compared to its average volume of 26,831,736. The stock has a market cap of $1.36 trillion, a P/E ratio of 108.18, a price-to-earnings-growth ratio of 2.15 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. The company has a 50 day moving average price of $265.36 and a two-hundred day moving average price of $224.11. Broadcom Inc. has a 1 year low of $128.50 and a 1 year high of $306.95.

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. The company had revenue of $15 billion during the quarter, compared to the consensus estimate of $14.98 billion. Broadcom had a return on equity of 35.49% and a net margin of 22.64%. Broadcom's revenue for the quarter was up 20.2% on a year-over-year basis. During the same period in the previous year, the business earned $10.96 EPS. On average, equities research analysts anticipate that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom announced that its board has approved a share buyback program 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 programs are usually a sign that the company's board believes its shares are undervalued.

Broadcom Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Monday, June 30th. Shareholders 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 0.8%. The ex-dividend date of this dividend was Friday, June 20th. Broadcom's payout ratio is 88.39%.

Insider Activity at Broadcom

In other news, CEO Hock E. Tan sold 40,000 shares of Broadcom stock in a transaction dated Thursday, June 26th. The stock was sold at an average price of $268.29, for a total transaction of $10,731,600.00. Following the sale, the chief executive officer owned 482,836 shares in the company, valued at approximately $129,540,070.44. The trade was a 7.65% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Gayla J. Delly sold 3,000 shares of Broadcom stock in a transaction dated Thursday, June 26th. The stock was sold at an average price of $265.13, for a total value of $795,390.00. Following the sale, the director owned 33,352 shares in the company, valued at $8,842,615.76. This trade represents a 8.25% decrease in their position. The disclosure for this sale can be found here. Insiders sold 830,516 shares of company stock worth $217,224,641 over the last three months. Company insiders own 2.00% of the company's stock.

Analyst Upgrades and Downgrades

Several brokerages recently weighed in on AVGO. UBS Group lifted their price target on Broadcom from $270.00 to $290.00 and gave the company a "buy" rating in a research note on Friday, June 6th. Arete Research upgraded Broadcom to a "strong-buy" rating in a research note on Monday. Erste Group Bank raised Broadcom from a "hold" rating to a "buy" rating in a report on Thursday, June 5th. Seaport Res Ptn raised Broadcom to a "strong-buy" rating in a report on Wednesday, April 30th. Finally, Mizuho increased their target price on Broadcom from $315.00 to $320.00 and gave the company an "outperform" rating in a report on Wednesday, July 16th. One investment 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 stock. According to data from MarketBeat.com, Broadcom presently has an average rating of "Buy" and a consensus target price 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.