TCW Group Inc. Has $258.36 Million Position in Broadcom Inc. (NASDAQ:AVGO)

Key Points

• TCW Group Inc. increased its stake in Broadcom Inc. by 38.7%, acquiring an additional 430,372 shares, bringing its total holdings to 1,543,065 shares, valued at approximately $258.4 million.
• Broadcom recently announced a quarterly dividend of $0.59 per share, translating to an annualized yield of 0.81%, with a payout ratio of 88.39%.
• The company reported a 20.2% year-over-year revenue increase to $15 billion, along with an earnings per share (EPS) of $1.58, exceeding analysts' expectations.

TCW Group Inc. boosted its holdings in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 38.7% in the 1st quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 1,543,065 shares of the semiconductor manufacturer's stock after purchasing an additional 430,372 shares during the quarter. Broadcom comprises approximately 2.3% of TCW Group Inc.'s holdings, making the stock its 7th largest position. TCW Group Inc.'s holdings in Broadcom were worth $258,355,000 at the end of the most recent quarter.

Several other hedge funds have also recently added to or reduced their stakes in the business. True Wealth Design LLC boosted its position in Broadcom by 7.2% in the fourth quarter. True Wealth Design LLC now owns 712 shares of the semiconductor manufacturer's stock valued at $165,000 after buying an additional 48 shares in the last quarter. Mizuho Bank Ltd. increased its position in shares of Broadcom by 7.1% in the fourth quarter. Mizuho Bank Ltd. now owns 750 shares of the semiconductor manufacturer's stock valued at $174,000 after acquiring an additional 50 shares during the last quarter. Fulton Breakefield Broenniman LLC increased its position in Broadcom by 2.4% during the first quarter. Fulton Breakefield Broenniman LLC now owns 2,130 shares of the semiconductor manufacturer's stock worth $357,000 after buying an additional 50 shares during the last quarter. American Financial Advisors LLC boosted its stake in shares of Broadcom by 3.8% in the first quarter. American Financial Advisors LLC now owns 1,432 shares of the semiconductor manufacturer's stock valued at $240,000 after buying an additional 52 shares during the period. Finally, First Bank & Trust raised its position in Broadcom by 1.9% during the first quarter. First Bank & Trust now owns 2,945 shares of the semiconductor manufacturer's stock valued at $493,000 after purchasing an additional 55 shares in the last quarter. Institutional investors own 76.43% of the company's stock.

Broadcom Stock Up 1.0%

Shares of AVGO traded up $2.98 during trading hours on Wednesday, hitting $300.40. The company had a trading volume of 7,393,836 shares, compared to its average volume of 26,865,281. Broadcom Inc. has a 52-week low of $128.50 and a 52-week high of $302.19. The stock has a market capitalization of $1.41 trillion, a price-to-earnings ratio of 112.50, a P/E/G ratio of 2.09 and a beta of 1.12. The company has a debt-to-equity ratio of 0.89, a quick ratio of 0.98 and a current ratio of 1.08. The firm has a fifty day moving average price of $262.64 and a 200-day moving average price of $223.09.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings results on Thursday, June 5th. The semiconductor manufacturer reported $1.58 earnings per share for the quarter, beating the consensus estimate of $1.57 by $0.01. Broadcom had a return on equity of 35.49% and a net margin of 22.64%. The company had revenue of $15 billion for the quarter, compared to analyst estimates of $14.98 billion. During the same quarter in the prior year, the firm posted $10.96 EPS. Broadcom's quarterly revenue was up 20.2% compared to the same quarter last year. On average, equities research analysts forecast that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Monday, June 30th. Investors of record on Friday, June 20th were given a dividend of $0.59 per share. This represents a $2.36 annualized dividend and a yield of 0.79%. The ex-dividend date of this dividend was Friday, June 20th. Broadcom's dividend payout ratio is currently 88.39%.

Broadcom declared that its board has approved a stock buyback plan on Monday, April 7th that authorizes the company to buyback $10.00 billion in shares. This buyback authorization authorizes the semiconductor manufacturer to purchase up to 1.4% of its shares through open market purchases. Shares buyback plans are usually a sign that the company's management believes its shares are undervalued.

Analyst Upgrades and Downgrades

AVGO has been the topic of several recent research reports. JPMorgan Chase & Co. raised their price target on shares of Broadcom from $250.00 to $325.00 and gave the company an "overweight" rating in a research report on Friday, June 6th. Erste Group Bank raised Broadcom from a "hold" rating to a "buy" rating in a report on Thursday, June 5th. Evercore ISI reiterated an "outperform" rating and issued a $304.00 price target (up from $267.00) on shares of Broadcom in a report on Friday, June 6th. Redburn Atlantic assumed coverage on shares of Broadcom in a research report on Wednesday, May 28th. They issued a "buy" rating and a $301.00 price objective for the company. Finally, Benchmark upped their price target on shares of Broadcom from $255.00 to $315.00 and gave the stock a "buy" rating in a research report on Friday, June 6th. One investment analyst has rated the stock with a hold rating, twenty-seven have given a buy rating and two have issued a strong buy rating to the company's stock. According to data from MarketBeat.com, Broadcom has a consensus rating of "Buy" and a consensus target price of $294.92.

Insiders Place Their Bets

In other news, Director Henry Samueli sold 473,898 shares of the company's stock in a transaction on Wednesday, June 25th. The stock was sold at an average price of $265.33, for a total value of $125,739,356.34. Following the transaction, the director owned 38,188,575 shares of the company's stock, valued at $10,132,574,604.75. This represents a 1.23% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Kirsten M. Spears sold 36,350 shares of the stock in a transaction dated Tuesday, June 24th. The shares were sold at an average price of $261.27, for a total value of $9,497,164.50. Following the completion of the transaction, the chief financial officer owned 325,587 shares in the company, valued at approximately $85,066,115.49. The trade was a 10.04% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders sold 830,516 shares of company stock valued at $217,224,641. 2.00% of the stock is owned by insiders.

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.