S Bank Fund Management Ltd Buys Shares of 74,100 Broadcom Inc. (NASDAQ:AVGO)

Key Points

• S Bank Fund Management Ltd has acquired a new stake of 74,100 shares in Broadcom Inc., valued at approximately $12.4 million, making it the firm's 6th largest holding.
• Broadcom recently reported a quarterly revenue of $15 billion, which exceeded analyst estimates, along with an earnings per share of $1.58, beating expectations by $0.01.
• Several brokerages have adjusted their price targets for Broadcom, with estimates ranging from $290 to $330, and the stock has a current average rating of "Buy".

S Bank Fund Management Ltd purchased a new position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) in the 1st quarter, according to its most recent Form 13F filing with the SEC. The firm purchased 74,100 shares of the semiconductor manufacturer's stock, valued at approximately $12,407,000. Broadcom comprises about 2.3% of S Bank Fund Management Ltd's investment portfolio, making the stock its 6th largest holding.

Several other hedge funds have also added to or reduced their stakes in the company. True Wealth Design LLC raised its holdings in Broadcom by 7.2% in the 4th quarter. True Wealth Design LLC now owns 712 shares of the semiconductor manufacturer's stock worth $165,000 after acquiring an additional 48 shares during the last quarter. Fulton Breakefield Broenniman LLC raised its holdings in Broadcom by 2.4% in the 1st quarter. Fulton Breakefield Broenniman LLC now owns 2,130 shares of the semiconductor manufacturer's stock worth $357,000 after acquiring an additional 50 shares during the last quarter. American Financial Advisors LLC raised its holdings in Broadcom by 3.8% in the 1st quarter. American Financial Advisors LLC now owns 1,432 shares of the semiconductor manufacturer's stock worth $240,000 after acquiring an additional 52 shares during the last quarter. GS Investments Inc. raised its holdings in Broadcom by 0.5% in the 1st quarter. GS Investments Inc. now owns 11,397 shares of the semiconductor manufacturer's stock worth $1,908,000 after acquiring an additional 52 shares during the last quarter. Finally, First Bank & Trust raised its holdings in Broadcom by 1.9% in the 1st quarter. First Bank & Trust now owns 2,945 shares of the semiconductor manufacturer's stock worth $493,000 after acquiring an additional 55 shares during the last quarter. 76.43% of the stock is owned by institutional investors and hedge funds.

Broadcom Trading Down 1.2%

Shares of NASDAQ:AVGO traded down $3.74 during trading on Wednesday, reaching $309.09. 17,344,261 shares of the company were exchanged, compared to its average volume of 16,969,746. The firm has a market capitalization of $1.45 trillion, a PE ratio of 115.76, a P/E/G ratio of 2.22 and a beta of 1.15. The business's fifty day simple moving average is $276.06 and its 200-day simple moving average is $228.20. Broadcom Inc. has a 12-month low of $134.90 and a 12-month high of $317.35. The company has a debt-to-equity ratio of 0.89, a current ratio of 1.08 and a quick ratio of 0.98.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its earnings results on Thursday, June 5th. The semiconductor manufacturer reported $1.58 EPS for the quarter, topping analysts' consensus estimates of $1.57 by $0.01. The business had revenue of $15 billion for the quarter, compared to analyst estimates of $14.98 billion. Broadcom had a net margin of 22.64% and a return on equity of 35.49%. The company'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 earnings per share. On average, research analysts anticipate that Broadcom Inc. will post 5.38 EPS for the current year.

Broadcom Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, June 30th. Stockholders of record on Friday, June 20th were paid a dividend of $0.59 per share. The ex-dividend date 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 (DPR) is currently 88.39%.

Insider Activity

In other news, CEO Hock E. Tan sold 117,758 shares of the stock in a transaction that occurred on Thursday, June 12th. The shares were sold at an average price of $252.91, for a total transaction of $29,782,175.78. Following the transaction, the chief executive officer directly owned 1,014,152 shares in the company, valued at approximately $256,489,182.32. This trade represents a 10.40% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, insider Charlie B. Kawwas sold 10,000 shares of the stock in a transaction that occurred on Wednesday, June 11th. The shares were sold at an average price of $252.88, for a total transaction of $2,528,800.00. Following the transaction, the insider owned 789,784 shares in the company, valued at approximately $199,720,577.92. This represents a 1.25% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 829,716 shares of company stock valued at $217,040,489. 2.00% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets

AVGO has been the subject of a number of recent analyst reports. Morgan Stanley set a $338.00 price objective on shares of Broadcom and gave the stock an "overweight" rating in a report on Wednesday, July 30th. Barclays boosted their price objective on shares of Broadcom from $215.00 to $265.00 and gave the stock an "overweight" rating in a report on Monday, June 9th. Oppenheimer boosted their target price 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. JPMorgan Chase & Co. boosted their target price on shares of Broadcom from $250.00 to $325.00 and gave the company an "overweight" rating in a research note on Friday, June 6th. Finally, Cantor Fitzgerald reiterated an "overweight" rating and set a $300.00 target price on shares of Broadcom in a research note on Friday, June 6th. Two 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. According to MarketBeat, the stock currently has an average rating of "Buy" and a consensus price target of $294.92.

Broadcom 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.