Solitude Financial Services Acquires Shares of 2,899 Broadcom Inc. (NASDAQ:AVGO)

Key Points

• Solitude Financial Services acquired 2,899 shares of Broadcom Inc. valued at approximately $485,000, making it the firm's 28th largest holding.
• Wall Street analysts are generally optimistic, with 27 buy ratings and a target price averaging around $294.92, reflecting strong interest in Broadcom's stock.
• Broadcom recently announced a $10 billion stock buyback plan and has maintained a quarterly dividend of $0.59, highlighting its financial strength.

Solitude Financial Services purchased a new stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) during the first quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor purchased 2,899 shares of the semiconductor manufacturer's stock, valued at approximately $485,000. Broadcom accounts for 0.2% of Solitude Financial Services' investment portfolio, making the stock its 28th biggest position.

A number of other institutional investors and hedge funds also recently modified their holdings of AVGO. Barnes Dennig Private Wealth Management LLC acquired a new position in Broadcom in the first quarter valued at about $25,000. Cheviot Value Management LLC bought a new stake in shares of Broadcom in the first quarter valued at about $25,000. Inlight Wealth Management LLC bought a new stake in shares of Broadcom in the first quarter valued at about $26,000. Sunbeam Capital Management LLC bought a new stake in shares of Broadcom in the fourth quarter valued at about $28,000. Finally, Vermillion Wealth Management Inc. bought a new stake in shares of Broadcom in the fourth quarter valued at about $30,000. 76.43% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

AVGO has been the topic of a number of research reports. The Goldman Sachs Group started coverage on Broadcom in a report on Thursday, July 10th. They issued a "buy" rating and a $315.00 price target on the stock. Erste Group Bank upgraded Broadcom from a "hold" rating to a "buy" rating in a report on Thursday, June 5th. Rosenblatt Securities upped their target price on Broadcom from $223.00 to $340.00 and gave the stock a "buy" rating in a report on Friday, June 6th. Truist Financial set a $295.00 target price on Broadcom and gave the stock a "buy" rating in a report on Friday, June 6th. Finally, Barclays upped their target price on Broadcom from $215.00 to $265.00 and gave the stock an "overweight" rating in a report on Monday, June 9th. One equities research analyst has rated the stock with a hold rating, twenty-seven have assigned a buy rating and three have assigned a strong buy rating to the stock. Based on data from MarketBeat.com, Broadcom currently has an average rating of "Buy" and an average target price of $294.92.

Broadcom Stock Down 1.7%

Shares of AVGO opened at $288.64 on Monday. Broadcom Inc. has a 12 month low of $128.50 and a 12 month high of $306.95. The firm's 50 day moving average is $266.56 and its 200-day moving average is $224.50. The stock has a market capitalization of $1.36 trillion, a PE ratio of 108.10, a P/E/G ratio of 2.05 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.

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 (EPS) for the quarter, topping the consensus estimate 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 firm's revenue for the quarter was up 20.2% on a year-over-year basis. During the same quarter last year, the business posted $10.96 EPS. Equities research analysts forecast that Broadcom Inc. will post 5.38 EPS for the current year.

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 paid a $0.59 dividend. The ex-dividend date of this dividend was Friday, June 20th. This represents a $2.36 annualized dividend and a yield of 0.8%. Broadcom's dividend payout ratio is presently 88.39%.

Broadcom declared that its Board of Directors has approved a stock buyback plan on Monday, April 7th that authorizes the company to repurchase $10.00 billion in shares. This repurchase authorization authorizes the semiconductor manufacturer to buy up to 1.4% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's board of directors believes its shares are undervalued.

Insiders Place Their Bets

In related news, 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 value of $2,528,800.00. Following the completion of the transaction, the insider owned 789,784 shares of the company's stock, valued at $199,720,577.92. This represents a 1.25% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, 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 completion of the transaction, the chief executive officer directly owned 1,014,152 shares of the company's stock, valued at approximately $256,489,182.32. The trade was a 10.40% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 830,516 shares of company stock worth $217,224,641 over the last 90 days. 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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