Broadcom Inc. (NASDAQ:AVGO) Holdings Decreased by Zweig DiMenna Associates LLC

Key Points

• Zweig DiMenna Associates LLC reduced its stake in Broadcom Inc. by 31.2%, selling 95,321 shares and now holds 210,060 shares, worth approximately $35.2 million.
• Broadcom's recent quarterly earnings exceeded analyst expectations with a reported EPS of $1.58 and revenue of $15 billion, marking a year-over-year revenue increase of 20.2%.
• Institutional investors hold 76.43% of Broadcom's stock, with several hedge funds acquiring new stakes during the first quarter, indicating strong investor interest in the company.

Zweig DiMenna Associates LLC decreased its position in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 31.2% during the 1st quarter, according to the company in its most recent filing with the SEC. The fund owned 210,060 shares of the semiconductor manufacturer's stock after selling 95,321 shares during the quarter. Broadcom accounts for approximately 5.6% of Zweig DiMenna Associates LLC's holdings, making the stock its 3rd biggest holding. Zweig DiMenna Associates LLC's holdings in Broadcom were worth $35,170,000 at the end of the most recent reporting period.

Several other large investors have also made changes to their positions in the company. Stevens Capital Management LP grew its holdings in shares of Broadcom by 143.5% during the first quarter. Stevens Capital Management LP now owns 38,880 shares of the semiconductor manufacturer's stock worth $6,510,000 after purchasing an additional 22,914 shares during the last quarter. Prescott Group Capital Management L.L.C. bought a new position in Broadcom during the first quarter worth about $260,000. AM Investment Strategies LLC lifted its stake in Broadcom by 5.1% in the first quarter. AM Investment Strategies LLC now owns 1,263 shares of the semiconductor manufacturer's stock valued at $211,000 after buying an additional 61 shares in the last quarter. Equitable Trust Co. boosted its position in Broadcom by 27.0% during the 1st quarter. Equitable Trust Co. now owns 49,369 shares of the semiconductor manufacturer's stock worth $8,266,000 after acquiring an additional 10,497 shares during the last quarter. Finally, Drive Wealth Management LLC boosted its stake in shares of Broadcom by 4.9% during the 1st quarter. Drive Wealth Management LLC now owns 14,566 shares of the semiconductor manufacturer's stock worth $2,439,000 after buying an additional 682 shares during the last quarter. Institutional investors own 76.43% of the company's stock.

Broadcom Stock Performance

Shares of AVGO stock traded up $1.47 during trading on Friday, reaching $290.18. 12,031,575 shares of the company's stock traded hands, compared to its average volume of 17,076,324. The company has a market capitalization of $1.36 trillion, a P/E ratio of 108.68, a PEG ratio of 2.05 and a beta of 1.12. The company has a current ratio of 1.08, a quick ratio of 0.98 and a debt-to-equity ratio of 0.89. The firm's 50-day moving average is $260.05 and its 200 day moving average is $222.18. Broadcom Inc. has a 1 year low of $128.50 and a 1 year high of $292.59.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly earnings data on Thursday, June 5th. The semiconductor manufacturer reported $1.58 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.57 by $0.01. The business had revenue of $15 billion for 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 firm's quarterly revenue was up 20.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted $10.96 EPS. Equities research analysts expect that Broadcom Inc. will post 5.38 EPS for the current year.

Broadcom Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Monday, June 30th. Stockholders of record on Friday, June 20th were issued a $0.59 dividend. This represents a $2.36 dividend on an annualized basis and a dividend yield of 0.81%. The ex-dividend date was Friday, June 20th. Broadcom's payout ratio is 88.39%.

Broadcom announced that its board has authorized a stock buyback plan on Monday, April 7th that authorizes the company to buyback $10.00 billion in outstanding shares. This buyback authorization authorizes the semiconductor manufacturer to buy up to 1.4% of its stock through open market purchases. Stock buyback plans are generally an indication that the company's board believes its stock is undervalued.

Analyst Upgrades and Downgrades

AVGO has been the subject of a number of recent analyst reports. Seaport Res Ptn raised Broadcom to a "strong-buy" rating in a research report on Wednesday, April 30th. Truist Financial set a $295.00 price objective on shares of Broadcom and gave the company a "buy" rating in a research report on Friday, June 6th. Benchmark upped their price objective 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. Wall Street Zen upgraded shares of Broadcom from a "hold" rating to a "buy" rating in a research report on Saturday, July 5th. Finally, Susquehanna increased their target price on shares of Broadcom from $280.00 to $300.00 and gave the company a "positive" rating in a research report on Friday, June 6th. One investment analyst has rated the stock with a hold rating, twenty-seven have assigned a buy rating and two have given a strong buy rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Buy" and an average price target of $292.08.

Insider Transactions at Broadcom

In other Broadcom news, Director Justine Page sold 800 shares of the stock in a transaction that occurred on Monday, July 14th. The shares were sold at an average price of $274.30, for a total value of $219,440.00. Following the sale, the director directly owned 24,582 shares in the company, valued at $6,742,842.60. This represents a 3.15% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Henry Samueli sold 473,898 shares of the stock in a transaction that occurred 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 sale, the director owned 38,188,575 shares in the company, valued at $10,132,574,604.75. This represents a 1.23% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 830,516 shares of company stock valued at $217,224,641. Company insiders own 2.00% of the company's stock.

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.