Motley Fool Asset Management LLC Acquires 3,843 Shares of Broadcom Inc. (NASDAQ:AVGO)

Key Points

• Motley Fool Asset Management LLC raised its position in Broadcom Inc. by 1.8%, owning 218,849 shares valued at approximately $36.6 million, making it the firm's 12th biggest position.
• Broadcom reported earnings per share of $1.58 for the last quarter, surpassing estimates, with revenue up 20.2% year-over-year at $15 billion.
• The company recently declared a quarterly dividend of $0.59 per share, with a current dividend yield of 0.8% and a payout ratio of 88.39%.

Motley Fool Asset Management LLC increased its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 1.8% in the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 218,849 shares of the semiconductor manufacturer's stock after purchasing an additional 3,843 shares during the quarter. Broadcom accounts for 2.1% of Motley Fool Asset Management LLC's holdings, making the stock its 12th largest holding. Motley Fool Asset Management LLC's holdings in Broadcom were worth $36,642,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

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

Broadcom Stock Down 1.2%

Shares of AVGO traded down $3.74 during midday trading on Wednesday, reaching $309.09. 17,344,261 shares of the stock were exchanged, compared to its average volume of 26,324,674. Broadcom Inc. has a 12-month low of $134.90 and a 12-month high of $317.35. The firm has a 50 day simple moving average of $275.10 and a 200-day simple moving average of $227.64. The company has a quick ratio of 0.98, a current ratio of 1.08 and a debt-to-equity ratio of 0.89. The company has a market cap of $1.45 trillion, a price-to-earnings ratio of 115.76, a P/E/G ratio of 2.16 and a beta of 1.15.

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 for the quarter, topping analysts' consensus estimates 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 during the quarter, compared to analysts' expectations of $14.98 billion. During the same quarter in the previous year, the firm earned $10.96 earnings per share. The business's quarterly revenue was up 20.2% compared to the same quarter last year. Research analysts forecast that Broadcom Inc. will post 5.38 EPS for the current year.

Broadcom Announces Dividend

The company 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 was Friday, June 20th. Broadcom's dividend payout ratio is 88.39%.

Insider Activity at Broadcom

In other Broadcom news, Director Gayla J. Delly sold 3,000 shares of the firm's stock in a transaction on Thursday, June 26th. The shares were sold at an average price of $265.13, for a total value of $795,390.00. Following the sale, the director directly owned 33,352 shares in the company, valued at $8,842,615.76. This trade represents a 8.25% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CFO Kirsten M. Spears sold 36,350 shares of the firm's stock in a transaction on Tuesday, June 24th. The stock was sold at an average price of $261.27, for a total transaction of $9,497,164.50. Following the completion of the sale, the chief financial officer owned 325,587 shares in the company, valued at $85,066,115.49. This represents a 10.04% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders sold 829,716 shares of company stock valued at $217,040,489. 2.00% of the stock is owned by corporate insiders.

Analyst Upgrades and Downgrades

A number of equities analysts have recently commented on AVGO shares. Arete Research raised shares of Broadcom to a "strong-buy" rating in a report on Monday, July 28th. Morgan Stanley set a $338.00 price target on Broadcom and gave the stock an "overweight" rating in a research note on Wednesday, July 30th. HSBC upgraded Broadcom from a "hold" rating to a "buy" rating and set a $400.00 price target for the company in a research note on Tuesday, June 24th. Citigroup upped their price target on Broadcom from $285.00 to $315.00 and gave the stock a "buy" rating in a research note on Monday, July 7th. Finally, Bank of America upped their price target on Broadcom from $240.00 to $300.00 and gave the stock a "buy" rating in a research note on Friday, June 6th. Two analysts have rated the stock with a hold rating, twenty-six have given a buy rating and three have assigned a strong buy rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of "Buy" and a consensus 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.