Norden Group LLC Sells 2,302 Shares of Broadcom Inc. (NASDAQ:AVGO)

Key Points

• Norden Group LLC reduced its position in Broadcom Inc. by 6.8%, selling 2,302 shares and holding 31,698 shares valued at $5.3 million at the end of the first quarter.
• Broadcom reported a quarterly revenue of $15 billion, exceeding analysts' expectations, and achieved a **20.2%** increase compared to the prior year.
• The company announced a stock repurchase program allowing for the repurchase of up to $10 billion in shares, reflecting management's belief that the stock is undervalued.

Norden Group LLC cut its position in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 6.8% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 31,698 shares of the semiconductor manufacturer's stock after selling 2,302 shares during the quarter. Norden Group LLC's holdings in Broadcom were worth $5,307,000 at the end of the most recent reporting period.

Other hedge funds have also recently made changes to their positions in the company. Sunbeam Capital Management LLC bought a new stake in shares of Broadcom in the fourth quarter valued at $28,000. Vermillion Wealth Management Inc. purchased a new position in shares of Broadcom in the fourth quarter valued at $30,000. Barnes Dennig Private Wealth Management LLC purchased a new position in shares of Broadcom in the first quarter valued at $25,000. Inlight Wealth Management LLC purchased a new position in shares of Broadcom in the first quarter valued at $26,000. Finally, Mpwm Advisory Solutions LLC purchased a new position in shares of Broadcom in the fourth quarter valued at $37,000. 76.43% of the stock is currently owned by institutional investors.

Broadcom Trading Up 0.5%

Shares of AVGO opened at $290.18 on Monday. The firm has a market cap of $1.36 trillion, a price-to-earnings ratio of 108.68, a PEG ratio of 2.06 and a beta of 1.12. Broadcom Inc. has a fifty-two week low of $128.50 and a fifty-two week high of $292.59. The firm has a 50 day moving average price of $260.05 and a 200-day moving average price of $222.08. The company has a debt-to-equity ratio of 0.89, a quick ratio of 0.98 and a current ratio of 1.08.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its earnings results on Thursday, June 5th. The semiconductor manufacturer reported $1.58 earnings per share for the quarter, beating the consensus estimate of $1.57 by $0.01. The company had revenue of $15 billion during the quarter, compared to analysts' expectations of $14.98 billion. Broadcom had a return on equity of 35.49% and a net margin of 22.64%. Broadcom's quarterly revenue was up 20.2% compared to the same quarter last year. During the same period in the prior year, the business posted $10.96 EPS. As a group, equities research analysts forecast that Broadcom Inc. will post 5.38 earnings per share for the current year.

Broadcom Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Monday, June 30th. Investors of record on Friday, June 20th were issued a dividend of $0.59 per share. This represents a $2.36 annualized dividend and a yield of 0.81%. The ex-dividend date was Friday, June 20th. Broadcom's dividend payout ratio is presently 88.39%.

Broadcom announced that its board 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 reacquire up to 1.4% of its stock through open market purchases. Stock repurchase programs are often an indication that the company's board believes its stock is undervalued.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on the company. Truist Financial set a $295.00 price target on Broadcom and gave the company a "buy" rating in a research report on Friday, June 6th. Citigroup raised their price objective on shares of Broadcom from $285.00 to $315.00 and gave the company a "buy" rating in a research report on Monday, July 7th. Morgan Stanley raised their price objective on shares of Broadcom from $260.00 to $270.00 and gave the company an "overweight" rating in a research report on Friday, June 6th. Wall Street Zen upgraded shares of Broadcom from a "hold" rating to a "buy" rating in a research report on Saturday, July 5th. Finally, JPMorgan Chase & Co. raised their price objective on shares of Broadcom from $250.00 to $325.00 and gave the company an "overweight" rating in a research report on Friday, June 6th. One analyst has rated the stock with a hold rating, twenty-seven have given a buy rating and two have issued 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 $292.08.

Insider Activity at Broadcom

In related news, Director Henry Samueli sold 473,898 shares of the stock in a transaction dated Wednesday, June 25th. The stock was sold at an average price of $265.33, for a total transaction of $125,739,356.34. Following the completion of the sale, the director directly owned 38,188,575 shares in the company, valued at $10,132,574,604.75. This represents a 1.23% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director Justine Page sold 800 shares of the stock in a transaction dated Monday, July 14th. The shares were sold at an average price of $274.30, for a total value of $219,440.00. Following the sale, the director owned 24,582 shares of the company's stock, valued at $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 three months. Corporate insiders own 2.00% of the company's stock.

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.

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