Ranch Capital Advisors Inc. Sells 2,946 Shares of Broadcom Inc. (NASDAQ:AVGO)

Key Points

• Ranch Capital Advisors Inc. reduced its stake in Broadcom Inc. by 11.5%, selling 2,946 shares and now holding a total of 22,623 shares valued at approximately $3.79 million.
• Broadcom reported earnings of $1.58 per share for its latest quarter, exceeding analysts' expectations, with a total quarterly revenue of $15 billion, reflecting a 20.2% increase year-over-year.
• The company recently declared a quarterly dividend of $0.59 per share with a payout ratio of 88.39%, and has initiated a $10 billion share buyback program to repurchase up to 1.4% of its outstanding shares.

Ranch Capital Advisors Inc. lessened its holdings in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 11.5% during the first quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The firm owned 22,623 shares of the semiconductor manufacturer's stock after selling 2,946 shares during the period. Broadcom accounts for 1.8% of Ranch Capital Advisors Inc.'s holdings, making the stock its 13th biggest position. Ranch Capital Advisors Inc.'s holdings in Broadcom were worth $3,788,000 as of its most recent SEC filing.

Other hedge funds have also added to or reduced their stakes in the company. Barnes Dennig Private Wealth Management LLC acquired a new stake in shares of Broadcom during the 1st quarter worth about $25,000. Cheviot Value Management LLC bought a new position in Broadcom in the 1st quarter valued at about $25,000. Inlight Wealth Management LLC acquired a new stake in Broadcom during the first quarter worth approximately $26,000. Sunbeam Capital Management LLC bought a new stake in shares of Broadcom during the fourth quarter worth approximately $28,000. Finally, Vermillion Wealth Management Inc. acquired a new position in shares of Broadcom in the fourth quarter valued at approximately $30,000. Institutional investors and hedge funds own 76.43% of the company's stock.

Broadcom Stock Performance

Broadcom stock opened at $297.72 on Tuesday. The company has a quick ratio of 0.98, a current ratio of 1.08 and a debt-to-equity ratio of 0.89. The stock has a market cap of $1.40 trillion, a PE ratio of 111.51, a P/E/G ratio of 2.05 and a beta of 1.15. Broadcom Inc. has a 12-month low of $128.50 and a 12-month high of $306.95. The business's 50-day moving average price is $267.94 and its two-hundred day moving average price is $224.92.

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 for the quarter, beating analysts' consensus estimates of $1.57 by $0.01. The company had revenue of $15 billion for the quarter, compared to the consensus estimate of $14.98 billion. Broadcom had a net margin of 22.64% and a return on equity of 35.49%. The firm's quarterly revenue was up 20.2% compared to the same quarter last year. During the same period last year, the company posted $10.96 EPS. As a group, analysts expect that Broadcom Inc. will post 5.38 earnings per share for the current fiscal year.

Broadcom announced that its board has authorized a share buyback program on Monday, April 7th that allows the company to buyback $10.00 billion in outstanding shares. This buyback authorization allows the semiconductor manufacturer to purchase up to 1.4% of its shares through open market purchases. Shares buyback programs are generally a sign that the company's board of directors believes its stock is undervalued.

Broadcom Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, June 30th. Stockholders of record on Friday, June 20th were issued a dividend of $0.59 per share. The ex-dividend date was Friday, June 20th. This represents a $2.36 annualized dividend and a dividend yield of 0.8%. Broadcom's dividend payout ratio is 88.39%.

Insider Activity at Broadcom

In other Broadcom news, insider Mark David Brazeal sold 50,000 shares of the stock in a transaction dated Monday, June 23rd. The stock was sold at an average price of $253.28, for a total value of $12,664,000.00. Following the completion of the transaction, the insider directly owned 415,956 shares in the company, valued at approximately $105,353,335.68. This trade represents a 10.73% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Charlie B. Kawwas sold 10,000 shares of Broadcom stock in a transaction dated Wednesday, June 11th. The shares were sold at an average price of $252.88, for a total value of $2,528,800.00. Following the sale, the insider directly owned 789,784 shares in the company, valued at $199,720,577.92. The trade was a 1.25% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 830,516 shares of company stock valued at $217,224,641. 2.00% of the stock is owned by company insiders.

Wall Street Analysts Forecast Growth

AVGO has been the subject of several research reports. The Goldman Sachs Group initiated coverage on Broadcom in a report on Thursday, July 10th. They set a "buy" rating and a $315.00 price target for the company. HSBC raised Broadcom from a "hold" rating to a "buy" rating and set a $400.00 target price for the company in a report on Tuesday, June 24th. Oppenheimer upped their price target on shares of Broadcom from $265.00 to $305.00 and gave the company an "outperform" rating in a research note on Tuesday, July 15th. Bank of America raised their price target on shares of Broadcom from $240.00 to $300.00 and gave the stock a "buy" rating in a research report on Friday, June 6th. Finally, Seaport Res Ptn raised shares of Broadcom to a "strong-buy" rating in a report on Wednesday, April 30th. 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 stock. According to MarketBeat, the stock has a consensus rating of "Buy" and a consensus target price of $294.92.

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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