Thornburg Investment Management Inc. Cuts Holdings in Broadcom Inc. (NASDAQ:AVGO)

Key Points

• Thornburg Investment Management Inc. has reduced its holdings in Broadcom Inc. by 4.8%, now owning approximately 3 million shares, which represent about 7.0% of its investment portfolio.
• Several institutional investors made significant adjustments to their stakes in Broadcom, with GAMMA Investing LLC increasing its holdings by a staggering 18,179.3%.
• Broadcom's stock has received multiple analyst upgrades, with target prices raised up to $315, indicating strong market confidence in the company's growth prospects.

Thornburg Investment Management Inc. trimmed its position in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 4.8% during the first quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 3,002,533 shares of the semiconductor manufacturer's stock after selling 151,302 shares during the period. Broadcom makes up approximately 7.0% of Thornburg Investment Management Inc.'s investment portfolio, making the stock its 3rd largest holding. Thornburg Investment Management Inc. owned 0.06% of Broadcom worth $502,714,000 at the end of the most recent reporting period.

A number of other institutional investors also recently modified their holdings of AVGO. GAMMA Investing LLC raised its holdings in Broadcom by 18,179.3% during the first quarter. GAMMA Investing LLC now owns 17,276,164 shares of the semiconductor manufacturer's stock worth $2,892,548,000 after acquiring an additional 17,181,652 shares in the last quarter. Price T Rowe Associates Inc. MD raised 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 worth $11,018,089,000 after acquiring an additional 15,171,849 shares in the last quarter. Franklin Resources Inc. raised its stake in Broadcom by 27.4% in the fourth quarter. Franklin Resources Inc. now owns 26,897,909 shares of the semiconductor manufacturer's stock valued at $6,236,011,000 after buying an additional 5,783,988 shares during the period. Northern Trust Corp raised its stake in Broadcom by 12.0% in 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 buying an additional 5,258,925 shares during the period. Finally, APG Asset Management N.V. raised its stake in Broadcom by 609.4% in the fourth quarter. APG Asset Management N.V. now owns 4,379,348 shares of the semiconductor manufacturer's stock valued at $980,500,000 after buying an additional 3,762,034 shares during the period. 76.43% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

AVGO has been the topic of several research analyst reports. Benchmark upped their price objective on Broadcom from $255.00 to $315.00 and gave the company a "buy" rating in a research note on Friday, June 6th. UBS Group upped their price objective on Broadcom from $270.00 to $290.00 and gave the company a "buy" rating in a research note on Friday, June 6th. Citigroup increased their target price on Broadcom from $285.00 to $315.00 and gave the stock a "buy" rating in a research note on Monday, July 7th. Barclays increased their target price on Broadcom from $215.00 to $265.00 and gave the stock an "overweight" rating in a research note on Monday, June 9th. Finally, Redburn Atlantic assumed coverage on Broadcom in a research note on Wednesday, May 28th. They set a "buy" rating and a $301.00 price objective on the stock. One equities research analyst has rated the stock with a hold rating, twenty-seven have assigned a buy rating and two have issued a strong buy rating to the company's stock. According to data from MarketBeat.com, Broadcom presently has an average rating of "Buy" and a consensus target price of $292.08.

Insider Transactions at Broadcom

In other Broadcom news, CFO Kirsten M. Spears sold 56,310 shares of the business's stock in a transaction on Wednesday, June 18th. The shares were sold at an average price of $251.75, for a total transaction of $14,176,042.50. Following the sale, the chief financial officer owned 361,937 shares of the company's stock, valued at $91,117,639.75. The trade was a 13.46% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, 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 transaction of $125,739,356.34. Following the completion of the transaction, the director directly owned 38,188,575 shares in the company, valued at approximately $10,132,574,604.75. The trade was a 1.23% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 830,516 shares of company stock worth $217,224,641. 2.00% of the stock is owned by insiders.

Broadcom Stock Performance

Shares of Broadcom stock opened at $294.30 on Tuesday. Broadcom Inc. has a one year low of $128.50 and a one year high of $295.45. The firm has a market capitalization of $1.38 trillion, a price-to-earnings ratio of 110.22, a PEG ratio of 2.06 and a beta of 1.12. The business has a 50-day simple moving average of $261.32 and a 200 day simple moving average of $222.57. 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 released its quarterly earnings results on Thursday, June 5th. The semiconductor manufacturer reported $1.58 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.57 by $0.01. The business had revenue of $15 billion during the quarter, compared to the consensus estimate of $14.98 billion. Broadcom had a return on equity of 35.49% and a net margin of 22.64%. The company's quarterly revenue was up 20.2% on a year-over-year basis. During the same quarter in the previous year, the business earned $10.96 EPS. On average, research analysts anticipate that Broadcom Inc. will post 5.38 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, June 30th. Stockholders 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 dividend on an annualized basis and a dividend yield of 0.80%. Broadcom's payout ratio is presently 88.39%.

Broadcom declared that its board has authorized a stock repurchase program on Monday, April 7th that permits the company to repurchase $10.00 billion in outstanding shares. This repurchase authorization permits the semiconductor manufacturer to buy up to 1.4% of its shares through open market purchases. Shares repurchase programs are usually an indication that the company's board believes its stock is undervalued.

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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