Nuveen LLC Makes New Investment in Broadcom Inc. (NASDAQ:AVGO)

Key Points

• Nuveen LLC acquired approximately $6.65 billion worth of Broadcom Inc. shares, making it the firm's 5th largest holding with about 2.0% of their investment portfolio.
• Recent analyst reports have raised price targets for Broadcom, with firms like Benchmark and Citigroup increasing their targets to $315 while maintaining a "buy" rating.
• Insider trading showed significant sales, with CEO Hock E. Tan selling 40,000 shares at around $268.29, indicating a 7.65% decrease in his ownership stake.

Nuveen LLC acquired a new stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) during the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund acquired 39,712,817 shares of the semiconductor manufacturer's stock, valued at approximately $6,649,117,000. Broadcom accounts for approximately 2.0% of Nuveen LLC's portfolio, making the stock its 5th biggest holding. Nuveen LLC owned approximately 0.84% of Broadcom at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently made changes to their positions in the business. Barnes Dennig Private Wealth Management LLC bought a new position in Broadcom during the first quarter valued at approximately $25,000. Cheviot Value Management LLC bought a new position in Broadcom during the first quarter valued at approximately $25,000. Inlight Wealth Management LLC bought a new stake in Broadcom during the first quarter valued at approximately $26,000. Sunbeam Capital Management LLC bought a new stake in Broadcom during the fourth quarter valued at approximately $28,000. Finally, Vermillion Wealth Management Inc. bought a new position in Broadcom in the fourth quarter worth approximately $30,000. Institutional investors own 76.43% of the company's stock.

Insider Buying and Selling

In other Broadcom news, CFO Kirsten M. Spears sold 36,350 shares of the stock in a transaction that occurred on Tuesday, June 24th. The shares were sold at an average price of $261.27, for a total value of $9,497,164.50. Following the sale, the chief financial officer directly owned 325,587 shares of the company's stock, valued at approximately $85,066,115.49. This represents a 10.04% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, Director Justine Page sold 800 shares of the stock in a transaction that occurred on Monday, July 14th. The shares were sold at an average price of $274.30, for a total transaction of $219,440.00. Following the completion of the sale, the director directly owned 24,582 shares in the company, valued at approximately $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. In the last 90 days, insiders sold 830,516 shares of company stock worth $217,224,641. Corporate insiders own 2.00% of the company's stock.

Broadcom Stock Up 2.9%

AVGO traded up $8.93 during trading hours on Tuesday, hitting $312.83. 17,557,896 shares of the company's stock were exchanged, compared to its average volume of 26,383,006. Broadcom Inc. has a 12-month low of $134.90 and a 12-month high of $313.44. The firm has a market cap of $1.47 trillion, a P/E ratio of 117.16, a price-to-earnings-growth ratio of 2.17 and a beta of 1.15. The company has a current ratio of 1.08, a quick ratio of 0.98 and a debt-to-equity ratio of 0.89. The firm has a 50 day moving average of $273.98 and a 200 day moving average of $227.04.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its quarterly earnings data on Thursday, June 5th. The semiconductor manufacturer reported $1.58 EPS 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 business had revenue of $15 billion during the quarter, compared to the consensus estimate of $14.98 billion. During the same period in the previous year, the company posted $10.96 earnings per share. The business's revenue for the quarter was up 20.2% on a year-over-year basis. Analysts predict that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 30th. Shareholders of record on Friday, June 20th were given a $0.59 dividend. The ex-dividend date of this dividend was Friday, June 20th. This represents a $2.36 dividend on an annualized basis and a dividend yield of 0.8%. Broadcom's dividend payout ratio is currently 88.39%.

Wall Street Analysts Forecast Growth

AVGO has been the topic of several recent research reports. Wells Fargo & Company increased their price target on shares of Broadcom from $230.00 to $255.00 and gave the stock an "equal weight" rating in a research report on Friday, June 6th. Susquehanna increased their price target on shares of Broadcom from $280.00 to $300.00 and gave the stock a "positive" rating in a research report on Friday, June 6th. Evercore ISI reiterated an "outperform" rating and issued a $304.00 price target (up from $267.00) on shares of Broadcom in a research report on Friday, June 6th. Bank of America increased their price objective 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, Morgan Stanley set a $338.00 target price on shares of Broadcom and gave the stock an "overweight" rating in a report on Wednesday, July 30th. Two investment analysts have rated the stock with a hold rating, twenty-six have given a buy rating and three have given a strong buy rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Buy" and a consensus price target 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.