Nemes Rush Group LLC Lowers Stock Position in Broadcom Inc. (NASDAQ:AVGO)

Key Points

• Nemes Rush Group LLC reduced its position in Broadcom Inc. by 1.9%, owning 237,685 shares worth approximately $39.8 million, making it the firm's second largest stock holding.
• Broadcom reported quarterly earnings of $1.58 EPS, slightly exceeding analysts' expectations, with 20.2% year-over-year revenue growth, totaling $15 billion.
• The company announced a quarterly dividend of $0.59 per share, representing an annual yield of 0.81%, and it plans to repurchase up to $10 billion in shares, indicating management's confidence in the stock's valuation.

Nemes Rush Group LLC trimmed its position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 1.9% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm owned 237,685 shares of the semiconductor manufacturer's stock after selling 4,576 shares during the quarter. Broadcom accounts for approximately 5.0% of Nemes Rush Group LLC's holdings, making the stock its 2nd largest position. Nemes Rush Group LLC's holdings in Broadcom were worth $39,796,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently modified their holdings of AVGO. Sunbeam Capital Management LLC purchased a new stake in Broadcom in the 4th quarter worth $28,000. Vermillion Wealth Management Inc. purchased a new position in shares of Broadcom during the fourth quarter valued at about $30,000. Barnes Dennig Private Wealth Management LLC purchased a new position in Broadcom in the first quarter worth about $25,000. Inlight Wealth Management LLC purchased a new position in Broadcom in the first quarter worth about $26,000. Finally, Mpwm Advisory Solutions LLC purchased a new position in Broadcom in the fourth quarter worth about $37,000. 76.43% of the stock is owned by institutional investors.

Broadcom Price Performance

Shares of NASDAQ:AVGO opened at $290.18 on Friday. The company's fifty day moving average price is $260.05 and its 200 day moving average price is $222.13. Broadcom Inc. has a 12 month low of $128.50 and a 12 month high of $292.59. The company has a debt-to-equity ratio of 0.89, a current ratio of 1.08 and a quick ratio of 0.98. The firm has a market capitalization of $1.36 trillion, a P/E ratio of 108.68, a P/E/G ratio of 2.06 and a beta of 1.12.

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 company had revenue of $15 billion for the quarter, compared to analyst estimates of $14.98 billion. During the same period in the previous year, the business posted $10.96 earnings per share. Broadcom's quarterly revenue was up 20.2% on a year-over-year basis. As a group, sell-side analysts predict that Broadcom Inc. will post 5.38 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Monday, June 30th. Shareholders 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 annualized dividend and a yield of 0.81%. Broadcom's payout ratio is currently 88.39%.

Broadcom declared that its Board of Directors has approved a share buyback plan on Monday, April 7th that allows the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization allows the semiconductor manufacturer to reacquire up to 1.4% of its shares through open market purchases. Shares repurchase plans are often an indication that the company's management believes its stock is undervalued.

Analyst Upgrades and Downgrades

AVGO has been the subject of several analyst reports. UBS Group raised their price objective on shares of Broadcom from $270.00 to $290.00 and gave the stock a "buy" rating in a research note on Friday, June 6th. HSBC upgraded shares of Broadcom from a "hold" rating to a "buy" rating and set a $400.00 target price for the company in a research report on Tuesday, June 24th. Rosenblatt Securities upped their price objective on shares of Broadcom from $223.00 to $340.00 and gave the stock a "buy" rating in a research report on Friday, June 6th. Susquehanna boosted their target price on shares of Broadcom from $280.00 to $300.00 and gave the stock a "positive" rating in a research note on Friday, June 6th. Finally, Barclays upped their price objective on shares of Broadcom from $215.00 to $265.00 and gave the company an "overweight" rating in a research note on Monday, June 9th. One investment analyst has rated the stock with a hold rating, twenty-seven have given a buy rating and two have assigned a strong buy rating to the stock. According to MarketBeat, Broadcom has an average rating of "Buy" and a consensus price target of $292.08.

Insider Activity at Broadcom

In other Broadcom news, insider Mark David Brazeal sold 50,000 shares of the company's stock in a transaction dated Monday, June 23rd. The shares were sold at an average price of $253.28, for a total value of $12,664,000.00. Following the sale, the insider owned 415,956 shares of the company's stock, valued at $105,353,335.68. This represents a 10.73% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, 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 transaction of $2,528,800.00. Following the completion of the sale, the insider directly owned 789,784 shares in the company, valued at $199,720,577.92. This trade represents a 1.25% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 830,516 shares of company stock valued at $217,224,641 in the last ninety days. Company 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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