NewEdge Wealth LLC Has $62.01 Million Stake in Broadcom Inc. (NASDAQ:AVGO)

Key Points

• NewEdge Wealth LLC reduced its holdings in Broadcom Inc. by 13.6%, now owning 370,388 shares valued at approximately $62.01 million, making it the firm's 13th largest holding.
• Broadcom's stock has seen recent insider selling, with CEO Hock E. Tan selling over 117,000 shares, as well as the initiation of a $10 billion stock buyback program, indicating a belief in the stock's undervaluation.
• Analysts are largely bullish on Broadcom, with the average target price estimated at $294.92 and a consensus rating of "Buy" from most research firms.

NewEdge Wealth LLC trimmed its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 13.6% during the 1st quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 370,388 shares of the semiconductor manufacturer's stock after selling 58,249 shares during the period. Broadcom comprises about 1.1% of NewEdge Wealth LLC's investment portfolio, making the stock its 13th biggest position. NewEdge Wealth LLC's holdings in Broadcom were worth $62,014,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Several other hedge funds and other institutional investors also recently bought and sold shares of AVGO. Sunbeam Capital Management LLC bought a new position in shares of Broadcom during the 4th quarter worth about $28,000. Vermillion Wealth Management Inc. bought a new position in Broadcom during the 4th quarter valued at about $30,000. Barnes Dennig Private Wealth Management LLC bought a new position in Broadcom during the 1st quarter valued at about $25,000. Cheviot Value Management LLC bought a new position in Broadcom during the 1st quarter valued at about $25,000. Finally, Inlight Wealth Management LLC bought a new position in Broadcom during the 1st quarter valued at about $26,000. 76.43% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity

In other news, Director Gayla J. Delly sold 3,000 shares of the stock in a transaction dated Thursday, June 26th. The shares were sold at an average price of $265.13, for a total value of $795,390.00. Following the transaction, the director directly owned 33,352 shares of the company's stock, valued at $8,842,615.76. This represents a 8.25% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Henry Samueli sold 473,898 shares of the stock in a transaction dated 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 transaction, the director directly owned 38,188,575 shares in the company, valued at $10,132,574,604.75. The trade was a 1.23% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 830,516 shares of company stock valued at $217,224,641. 2.00% of the stock is owned by corporate insiders.

Broadcom Stock Performance

NASDAQ AVGO traded down $5.06 on Friday, hitting $288.64. 21,405,316 shares of the stock were exchanged, compared to its average volume of 17,067,202. 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 business's fifty day moving average is $266.56 and its 200 day moving average is $224.50. Broadcom Inc. has a 52 week low of $128.50 and a 52 week high of $306.95. The company has a market capitalization of $1.36 trillion, a PE ratio of 108.10, a P/E/G ratio of 2.05 and a beta of 1.15.

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

Broadcom announced that its Board of Directors has authorized a stock repurchase program on Monday, April 7th that allows the company to repurchase $10.00 billion in shares. This repurchase authorization allows the semiconductor manufacturer to buy up to 1.4% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's leadership believes its shares are undervalued.

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 given a dividend of $0.59 per share. This represents a $2.36 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend was Friday, June 20th. Broadcom's dividend payout ratio is 88.39%.

Analyst Upgrades and Downgrades

Several equities analysts recently issued reports on the stock. KeyCorp lifted their price target on shares of Broadcom from $315.00 to $330.00 and gave the company an "overweight" rating in a report on Tuesday, July 8th. Oppenheimer lifted their price target on shares of Broadcom from $265.00 to $305.00 and gave the company an "outperform" rating in a report on Tuesday, July 15th. Citigroup lifted their price target on shares of Broadcom from $285.00 to $315.00 and gave the company a "buy" rating in a report on Monday, July 7th. Bank of America boosted their target price on shares of Broadcom from $240.00 to $300.00 and gave the stock a "buy" rating in a research note on Friday, June 6th. Finally, 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. One investment analyst has rated the stock with a hold rating, twenty-seven have given a buy rating and three have issued a strong buy rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Buy" and a consensus target price of $294.92.

About Broadcom

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.