Insider Selling: Broadcom Inc. (NASDAQ:AVGO) CEO Sells 40,000 Shares of Stock

Broadcom Inc. (NASDAQ:AVGO - Get Free Report) CEO Hock E. Tan sold 40,000 shares of Broadcom stock in a transaction that occurred on Tuesday, June 24th. The shares were sold at an average price of $262.17, for a total transaction of $10,486,800.00. Following the completion of the sale, the chief executive officer now owns 974,152 shares of the company's stock, valued at $255,393,429.84. This trade represents a 3.94% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink.

Broadcom Stock Performance

NASDAQ:AVGO traded up $0.88 during trading hours on Wednesday, hitting $264.65. 18,848,335 shares of the company traded hands, compared to its average volume of 29,285,939. The stock has a market capitalization of $1.24 trillion, a price-to-earnings ratio of 99.12, a P/E/G ratio of 1.81 and a beta of 1.11. Broadcom Inc. has a twelve month low of $128.50 and a twelve month high of $269.70. The firm has a 50-day moving average of $223.68 and a 200 day moving average of $213.63. 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 (NASDAQ:AVGO - Get Free Report) last announced its quarterly earnings results 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 firm had revenue of $15 billion for the quarter, compared to analyst estimates of $14.98 billion. Broadcom had a net margin of 22.64% and a return on equity of 35.49%. The business's revenue for the quarter was up 20.2% on a year-over-year basis. During the same quarter in the previous year, the firm posted $10.96 EPS. On average, analysts forecast that Broadcom Inc. will post 5.38 EPS for the current year.

Broadcom Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Monday, June 30th. Shareholders of record on Friday, June 20th will be issued a $0.59 dividend. This represents a $2.36 annualized dividend and a yield of 0.89%. The ex-dividend date of this dividend is Friday, June 20th. Broadcom's dividend payout ratio (DPR) is presently 88.39%.

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

Institutional Investors Weigh In On Broadcom

Several institutional investors and hedge funds have recently bought and sold shares of AVGO. Norges Bank bought a new stake in Broadcom in the 4th quarter valued at $16,893,010,000. Nuveen LLC bought a new stake in Broadcom in the 1st quarter valued at $6,649,117,000. Price T Rowe Associates Inc. MD increased its holdings in Broadcom by 37.8% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 65,509,579 shares of the semiconductor manufacturer's stock valued at $10,968,270,000 after buying an additional 17,985,046 shares during the period. GAMMA Investing LLC increased its holdings in Broadcom by 18,179.3% in the 1st quarter. GAMMA Investing LLC now owns 17,276,164 shares of the semiconductor manufacturer's stock valued at $2,892,548,000 after buying an additional 17,181,652 shares during the period. Finally, GQG Partners LLC grew its holdings in shares of Broadcom by 200.0% in the 4th quarter. GQG Partners LLC now owns 10,213,160 shares of the semiconductor manufacturer's stock worth $2,367,819,000 after purchasing an additional 6,809,245 shares during the last quarter. Institutional investors own 76.43% of the company's stock.

Analysts Set New Price Targets

A number of analysts have issued reports on AVGO shares. KeyCorp lifted their target price on shares of Broadcom from $260.00 to $275.00 and gave the company an "overweight" rating in a research note on Friday, March 7th. Rosenblatt Securities lifted their price target on shares of Broadcom from $223.00 to $340.00 and gave the company a "buy" rating in a research report on Friday, June 6th. Benchmark boosted their price objective on shares of Broadcom from $255.00 to $315.00 and gave the stock a "buy" rating in a research note on Friday, June 6th. William Blair restated an "outperform" rating on shares of Broadcom in a research note on Friday, March 7th. Finally, Bank of America boosted their price objective on shares of Broadcom from $240.00 to $300.00 and gave the stock a "buy" rating in a research note on Friday, June 6th. Two investment analysts have rated the stock with a hold rating, twenty-six have given a buy rating and two have assigned a strong buy rating to the company. According to MarketBeat, the company presently has an average rating of "Buy" and an average target price of $281.25.

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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