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 the company's stock in a transaction dated Thursday, June 26th. The shares were sold at an average price of $268.29, for a total transaction of $10,731,600.00. Following 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 sale was disclosed in a filing with the SEC, which is accessible through this hyperlink.

Broadcom Trading Up 1.8%

NASDAQ:AVGO traded up $4.97 during midday trading on Thursday, hitting $274.87. The stock had a trading volume of 10,592,655 shares, compared to its average volume of 28,686,867. The company has a quick ratio of 0.98, a current ratio of 1.08 and a debt-to-equity ratio of 0.89. The stock has a 50-day moving average of $235.38 and a 200 day moving average of $216.81. The company has a market capitalization of $1.29 trillion, a price-to-earnings ratio of 102.95, a PEG ratio of 1.88 and a beta of 1.12. Broadcom Inc. has a one year low of $128.50 and a one year high of $277.71.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings results 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 the consensus estimate of $14.98 billion. Broadcom had a return on equity of 35.49% and a net margin of 22.64%. The business's revenue was up 20.2% compared to the same quarter last year. During the same quarter in the prior year, the company earned $10.96 EPS. As a group, sell-side analysts forecast that Broadcom Inc. will post 5.38 EPS for the current year.

Broadcom announced that its Board of Directors has authorized a stock repurchase program on Monday, April 7th that allows the company to repurchase $10.00 billion in shares. This repurchase authorization allows the semiconductor manufacturer to buy up to 1.4% of its shares through open market purchases. Shares repurchase programs are often a sign that the company's board believes its shares are undervalued.

Broadcom Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, June 30th. Shareholders of record on Friday, June 20th were given a dividend of $0.59 per share. This represents a $2.36 dividend on an annualized basis and a yield of 0.86%. The ex-dividend date of this dividend was Friday, June 20th. Broadcom's dividend payout ratio (DPR) is 88.39%.

Hedge Funds Weigh In On Broadcom

A number of hedge funds and other institutional investors have recently modified their holdings of AVGO. Trinity Financial Advisors LLC bought a new position in Broadcom in the second quarter worth approximately $3,107,000. Arvest Investments Inc. purchased a new position in shares of Broadcom in the 2nd quarter valued at $1,464,000. TrueWealth Advisors LLC raised its position in shares of Broadcom by 5.4% in the 2nd quarter. TrueWealth Advisors LLC now owns 2,110 shares of the semiconductor manufacturer's stock worth $582,000 after acquiring an additional 109 shares in the last quarter. McLean Asset Management Corp lifted its stake in shares of Broadcom by 9.6% during the 2nd quarter. McLean Asset Management Corp now owns 3,013 shares of the semiconductor manufacturer's stock worth $813,000 after purchasing an additional 265 shares during the last quarter. Finally, Trust Co of the South lifted its position in shares of Broadcom by 1.6% during the second quarter. Trust Co of the South now owns 4,082 shares of the semiconductor manufacturer's stock valued at $1,125,000 after buying an additional 66 shares during the last quarter. 76.43% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

AVGO has been the topic of a number of recent research reports. Evercore ISI restated an "outperform" rating and set a $304.00 price objective (up from $267.00) on shares of Broadcom in a research report on Friday, June 6th. Mizuho boosted their target price on Broadcom from $310.00 to $315.00 and gave the company an "outperform" rating in a research report on Thursday. Morgan Stanley increased their price target on Broadcom from $260.00 to $270.00 and gave the company an "overweight" rating in a report on Friday, June 6th. Wall Street Zen downgraded Broadcom from a "buy" rating to a "hold" rating in a research report on Sunday, June 15th. Finally, UBS Group boosted their price objective on shares of Broadcom from $270.00 to $290.00 and gave the company a "buy" rating in a research report on Friday, June 6th. Two research analysts have rated the stock with a hold rating, twenty-six have issued a buy rating and two have assigned a strong buy rating to the stock. Based on data from MarketBeat, Broadcom currently has a consensus rating of "Buy" and a consensus target price of $281.46.

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.