Broadcom Inc. (NASDAQ:AVGO) Shares Purchased by Sustainable Insight Capital Management LLC

Key Points

• Sustainable Insight Capital Management LLC increased its holdings in Broadcom Inc. by 12.4%, owning 78,348 shares valued at $13.12 million, now representing 6.5% of their investment portfolio.
• Broadcom's recent earnings report showed a 20.2% year-over-year revenue growth, with earnings per share of $1.58, surpassing analysts' expectations.
• The company declared a quarterly dividend of $0.59, yielding 0.8%, with an 88.39% dividend payout ratio.

Sustainable Insight Capital Management LLC lifted its holdings in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 12.4% during the first quarter, according to its most recent Form 13F filing with the SEC. The firm owned 78,348 shares of the semiconductor manufacturer's stock after purchasing an additional 8,616 shares during the period. Broadcom accounts for approximately 6.5% of Sustainable Insight Capital Management LLC's portfolio, making the stock its 2nd biggest holding. Sustainable Insight Capital Management LLC's holdings in Broadcom were worth $13,118,000 at the end of the most recent quarter.

Other institutional investors have also made changes to their positions in the company. Vanguard Group Inc. boosted its holdings in Broadcom by 0.4% during the first quarter. Vanguard Group Inc. now owns 477,220,137 shares of the semiconductor manufacturer's stock valued at $79,900,968,000 after purchasing an additional 2,085,534 shares in the last quarter. Northern Trust Corp boosted its holdings in Broadcom by 12.0% during the fourth quarter. Northern Trust Corp now owns 49,087,351 shares of the semiconductor manufacturer's stock valued at $11,380,411,000 after purchasing an additional 5,258,925 shares in the last quarter. Price T Rowe Associates Inc. MD boosted its holdings in Broadcom by 46.9% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 47,524,533 shares of the semiconductor manufacturer's stock valued at $11,018,089,000 after purchasing an additional 15,171,849 shares in the last quarter. Nuveen LLC acquired a new stake in Broadcom during the first quarter valued at approximately $6,649,117,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in Broadcom by 1.7% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 34,401,379 shares of the semiconductor manufacturer's stock valued at $7,975,616,000 after purchasing an additional 581,704 shares in the last quarter. 76.43% of the stock is currently owned by institutional investors.

Broadcom Trading Up 2.9%

Shares of Broadcom stock traded up $8.93 on Tuesday, hitting $312.83. 17,604,553 shares of the company's stock traded hands, compared to its average volume of 16,984,464. The firm's 50-day moving average price is $275.10 and its two-hundred day moving average price is $227.64. The stock has a market capitalization of $1.47 trillion, a PE ratio of 117.16, a price-to-earnings-growth ratio of 2.16 and a beta of 1.15. Broadcom Inc. has a one year low of $134.90 and a one year high of $313.44. 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, beating the consensus estimate of $1.57 by $0.01. Broadcom had a net margin of 22.64% and a return on equity of 35.49%. The company had revenue of $15 billion during the quarter, compared to analysts' expectations of $14.98 billion. During the same quarter in the previous year, the company posted $10.96 EPS. The business's revenue for the quarter was up 20.2% compared to the same quarter last year. On average, research analysts expect that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 30th. Investors of record on Friday, June 20th were given a $0.59 dividend. 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 is currently 88.39%.

Insiders Place Their Bets

In related news, Director Gayla J. Delly sold 3,000 shares of the company's stock in a transaction on Thursday, June 26th. The shares were sold at an average price of $265.13, for a total value of $795,390.00. Following the completion of the sale, the director owned 33,352 shares in the company, valued at $8,842,615.76. This represents a 8.25% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CFO Kirsten M. Spears sold 36,350 shares of the company's stock in a transaction on Tuesday, June 24th. The shares were sold at an average price of $261.27, for a total transaction of $9,497,164.50. Following the completion of the sale, the chief financial officer 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 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. 2.00% of the stock is currently owned by corporate insiders.

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on the company. Evercore ISI reaffirmed an "outperform" rating and set a $304.00 price objective (up from $267.00) on shares of Broadcom in a report on Friday, June 6th. Morgan Stanley set a $338.00 target price on Broadcom and gave the stock an "overweight" rating in a report on Wednesday, July 30th. Wells Fargo & Company boosted their target price on Broadcom from $230.00 to $255.00 and gave the stock an "equal weight" rating in a report on Friday, June 6th. Bank of America boosted their target price on Broadcom from $240.00 to $300.00 and gave the stock a "buy" rating in a report on Friday, June 6th. Finally, Mizuho boosted their target price on Broadcom from $315.00 to $320.00 and gave the stock an "outperform" rating in a report on Wednesday, July 16th. Two research analysts have rated the stock with a hold rating, twenty-six have issued a buy rating and three have assigned a strong buy rating to the company. According to MarketBeat, Broadcom presently has an average rating of "Buy" and an average price target 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.