Pacer Advisors Inc. Has $90.85 Million Position in Broadcom Inc. (NASDAQ:AVGO)

Key Points

• Pacer Advisors Inc. reduced its stake in Broadcom Inc. by 8.5%, now holding 542,631 shares valued at approximately $90.85 million.
• Broadcom recently reported a 20.2% year-over-year increase in revenue for the last quarter, amounting to $15 billion, and exceeded earnings expectations with an EPS of $1.58.
• The company has initiated a stock repurchase plan allowing for the buyback of up to $10 billion in outstanding shares, suggesting management believes the stock is undervalued.

Pacer Advisors Inc. lowered its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 8.5% in the first quarter, according to its most recent disclosure with the SEC. The fund owned 542,631 shares of the semiconductor manufacturer's stock after selling 50,693 shares during the period. Pacer Advisors Inc.'s holdings in Broadcom were worth $90,853,000 as of its most recent filing with the SEC.

A number of other institutional investors and hedge funds have also added to or reduced their stakes in the business. Neo Ivy Capital Management increased its stake in Broadcom by 143.2% in the first quarter. Neo Ivy Capital Management now owns 14,952 shares of the semiconductor manufacturer's stock valued at $2,503,000 after acquiring an additional 8,805 shares during the period. ANB Bank grew its stake in Broadcom by 3.5% during the first quarter. ANB Bank now owns 2,260 shares of the semiconductor manufacturer's stock worth $378,000 after buying an additional 76 shares during the last quarter. Cetera Investment Advisers grew its stake in Broadcom by 5.3% during the first quarter. Cetera Investment Advisers now owns 1,106,256 shares of the semiconductor manufacturer's stock worth $185,220,000 after buying an additional 56,020 shares during the last quarter. Avantax Advisory Services Inc. grew its stake in Broadcom by 1.9% during the first quarter. Avantax Advisory Services Inc. now owns 260,920 shares of the semiconductor manufacturer's stock worth $43,686,000 after buying an additional 4,871 shares during the last quarter. Finally, Hamilton Point Investment Advisors LLC grew its stake in Broadcom by 3.3% during the first quarter. Hamilton Point Investment Advisors LLC now owns 1,883 shares of the semiconductor manufacturer's stock worth $315,000 after buying an additional 60 shares during the last quarter. Institutional investors own 76.43% of the company's stock.

Broadcom Trading Up 0.5%

AVGO traded up $1.47 during mid-day trading on Friday, hitting $290.18. The stock had a trading volume of 12,031,575 shares, compared to its average volume of 17,076,324. The stock's fifty day simple moving average is $260.05 and its 200-day simple moving average is $222.18. 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 price-to-earnings ratio of 108.68, a price-to-earnings-growth ratio of 2.05 and a beta of 1.12. Broadcom Inc. has a 1-year low of $128.50 and a 1-year high of $292.59.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued 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 net margin of 22.64% and a return on equity of 35.49%. The business had revenue of $15 billion for the quarter, compared to analyst estimates of $14.98 billion. During the same period last year, the business posted $10.96 earnings per share. The firm's quarterly revenue was up 20.2% on a year-over-year basis. As a group, research analysts forecast that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom announced that its Board of Directors has initiated a stock repurchase 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 repurchase up to 1.4% of its stock through open market purchases. Stock repurchase plans are often a sign that the company's management believes its shares are undervalued.

Broadcom Announces Dividend

The business also recently disclosed 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. 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 0.81%. Broadcom's payout ratio is 88.39%.

Insider Buying and Selling at Broadcom

In related news, Director Justine Page sold 800 shares of the firm's stock in a transaction 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 sale, the director directly owned 24,582 shares in the company, valued at $6,742,842.60. This trade represents a 3.15% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Henry Samueli sold 473,898 shares of Broadcom stock in a transaction on 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 sale, the director 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. Insiders sold a total of 830,516 shares of company stock valued at $217,224,641 over the last quarter. 2.00% of the stock is currently owned by corporate insiders.

Analyst Upgrades and Downgrades

AVGO has been the topic of several research analyst reports. Cantor Fitzgerald reaffirmed an "overweight" rating and set a $300.00 price objective on shares of Broadcom in a research note on Friday, June 6th. The Goldman Sachs Group initiated coverage on shares of Broadcom in a research note on Thursday, July 10th. They set a "buy" rating and a $315.00 price objective on the stock. Barclays upped their price objective on shares of Broadcom from $215.00 to $265.00 and gave the stock an "overweight" rating in a research note on Monday, June 9th. Cowen reissued a "buy" rating on shares of Broadcom in a research note on Friday, June 6th. Finally, Truist Financial set a $295.00 price target on shares of Broadcom and gave the company a "buy" rating in a research note on Friday, June 6th. One analyst has rated the stock with a hold rating, twenty-seven have assigned a buy rating and two have issued a strong buy rating to the stock. According to MarketBeat, the stock presently has an average rating of "Buy" and a consensus target price of $292.08.

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.