University of Texas Texas AM Investment Management Co. Increases Stock Position in Broadcom Inc. (NASDAQ:AVGO)

Key Points

• The University of Texas Texas AM Investment Management Co. increased its stake in Broadcom Inc. by 12.8%, now holding 36,297 shares valued at approximately $6,077,000.
• Recent upgrades from analysts include a shift from a "hold" to a "buy" rating, with Broadcom's average target price set at $292.08.
• Broadcom announced a quarterly dividend of $0.59 per share, reflecting an annualized yield of 0.81%, and has a share buyback plan worth $10 billion in place.

University of Texas Texas AM Investment Management Co. grew its stake in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 12.8% during the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The firm owned 36,297 shares of the semiconductor manufacturer's stock after purchasing an additional 4,124 shares during the period. Broadcom makes up 1.0% of University of Texas Texas AM Investment Management Co.'s investment portfolio, making the stock its 18th biggest holding. University of Texas Texas AM Investment Management Co.'s holdings in Broadcom were worth $6,077,000 as of its most recent filing with the Securities and Exchange Commission.

Several other institutional investors have also recently made changes to their positions in AVGO. Sunbeam Capital Management LLC purchased a new stake in shares of Broadcom in the fourth quarter worth approximately $28,000. Vermillion Wealth Management Inc. purchased a new stake in Broadcom in the 4th quarter valued at $30,000. Barnes Dennig Private Wealth Management LLC purchased a new stake in Broadcom in the 1st quarter valued at $25,000. Inlight Wealth Management LLC purchased a new stake in shares of Broadcom in the first quarter valued at about $26,000. Finally, Mpwm Advisory Solutions LLC purchased a new stake in shares of Broadcom in the fourth quarter valued at about $37,000. Institutional investors and hedge funds own 76.43% of the company's stock.

Insiders Place Their Bets

In other news, CEO Hock E. Tan sold 40,000 shares of the company's stock in a transaction that occurred on Thursday, June 26th. The stock was sold at an average price of $268.29, for a total transaction of $10,731,600.00. Following the completion of the sale, the chief executive officer owned 482,836 shares in the company, valued at $129,540,070.44. This represents a 7.65% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Kirsten M. Spears sold 36,350 shares of the company's stock in a transaction on Tuesday, June 24th. The stock was sold at an average price of $261.27, for a total transaction of $9,497,164.50. Following the transaction, the chief financial officer owned 325,587 shares of the company's stock, 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. In the last ninety days, insiders sold 830,516 shares of company stock valued at $217,224,641. 2.00% of the stock is owned by insiders.

Wall Street Analyst Weigh In

Several brokerages have recently commented on AVGO. Bank of America increased their target price on shares of Broadcom from $240.00 to $300.00 and gave the company a "buy" rating in a report on Friday, June 6th. KeyCorp increased their price target on Broadcom from $315.00 to $330.00 and gave the company an "overweight" rating in a research report on Tuesday, July 8th. Seaport Res Ptn upgraded Broadcom to a "strong-buy" rating in a report on Wednesday, April 30th. UBS Group lifted their price target on Broadcom from $270.00 to $290.00 and gave the stock a "buy" rating in a report on Friday, June 6th. Finally, Redburn Atlantic assumed coverage on Broadcom in a research report on Wednesday, May 28th. They set a "buy" rating and a $301.00 target price for the company. One research analyst has rated the stock with a hold rating, twenty-seven have issued a buy rating and three have given a strong buy rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Buy" and a consensus target price of $294.92.

Broadcom Trading Down 2.9%

Broadcom stock traded down $8.80 during midday trading on Thursday, reaching $293.82. 11,477,760 shares of the stock traded hands, compared to its average volume of 26,821,340. The company has a 50-day simple moving average of $264.10 and a two-hundred day simple moving average of $223.64. 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 Inc. has a 12-month low of $128.50 and a 12-month high of $306.95. The firm has a market cap of $1.38 trillion, a PE ratio of 110.04, a price-to-earnings-growth ratio of 2.12 and a beta of 1.12.

Broadcom (NASDAQ:AVGO - Get Free Report) last announced its quarterly earnings data on Thursday, June 5th. The semiconductor manufacturer reported $1.58 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.57 by $0.01. The business had revenue of $15 billion during the quarter, compared to analysts' expectations of $14.98 billion. Broadcom had a return on equity of 35.49% and a net margin of 22.64%. The business's quarterly revenue was up 20.2% compared to the same quarter last year. During the same quarter last year, the business posted $10.96 EPS. Research analysts expect that Broadcom Inc. will post 5.38 earnings per share for the current fiscal year.

Broadcom announced that its board has approved a stock repurchase plan on Monday, April 7th that allows the company to repurchase $10.00 billion in shares. This repurchase authorization allows the semiconductor manufacturer to reacquire up to 1.4% of its stock through open market purchases. Stock repurchase plans are generally a sign that the company's board of directors believes its shares are undervalued.

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 issued 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 88.39%.

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.