Steadfast Capital Management LP Purchases New Position in Broadcom Inc. (NASDAQ:AVGO)

Steadfast Capital Management LP purchased a new position in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) in the 4th quarter, according to the company in its most recent filing with the SEC. The institutional investor purchased 272,700 shares of the semiconductor manufacturer's stock, valued at approximately $63,223,000.

Several other large investors also recently added to or reduced their stakes in AVGO. Canton Hathaway LLC purchased a new position in Broadcom in the 4th quarter valued at approximately $26,000. Rialto Wealth Management LLC purchased a new position in shares of Broadcom during the 4th quarter valued at $26,000. Sellwood Investment Partners LLC purchased a new position in shares of Broadcom during the 4th quarter valued at $32,000. Bellevue Asset Management LLC purchased a new position in shares of Broadcom during the 4th quarter valued at $33,000. Finally, Synergy Investment Management LLC purchased a new position in shares of Broadcom during the 4th quarter valued at $35,000. Hedge funds and other institutional investors own 76.43% of the company's stock.

Insider Activity

In other news, Director Henry Samueli sold 663,976 shares of the company's stock in a transaction dated Wednesday, March 26th. The shares were sold at an average price of $181.60, for a total transaction of $120,578,041.60. Following the completion of the transaction, the director now directly owns 38,798,721 shares of the company's stock, valued at approximately $7,045,847,733.60. This represents a 1.68% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Mark David Brazeal sold 30,000 shares of the company's stock in a transaction dated Monday, March 24th. The shares were sold at an average price of $194.65, for a total transaction of $5,839,500.00. Following the transaction, the insider now directly owns 490,956 shares of the company's stock, valued at approximately $95,564,585.40. This trade represents a 5.76% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 720,576 shares of company stock valued at $131,249,694. Insiders own 2.00% of the company's stock.

Broadcom Trading Up 0.5%

Broadcom stock traded up $1.05 during mid-day trading on Tuesday, hitting $231.68. The company's stock had a trading volume of 11,749,421 shares, compared to its average volume of 31,114,542. The company has a debt-to-equity ratio of 0.98, a current ratio of 1.17 and a quick ratio of 1.07. The stock has a market cap of $1.09 trillion, a price-to-earnings ratio of 188.97, a price-to-earnings-growth ratio of 2.29 and a beta of 1.04. The business has a 50 day moving average price of $187.81 and a 200-day moving average price of $200.05. Broadcom Inc. has a 12 month low of $128.50 and a 12 month high of $251.88.

Broadcom declared that its Board of Directors has initiated a stock repurchase 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 reacquire up to 1.4% of its stock through open market purchases. Stock buyback plans are typically a sign that the company's board of directors believes its shares are undervalued.

Broadcom Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Monday, March 31st. Stockholders of record on Thursday, March 20th were paid a dividend of $0.59 per share. This represents a $2.36 annualized dividend and a dividend yield of 1.02%. The ex-dividend date was Thursday, March 20th. Broadcom's dividend payout ratio (DPR) is 113.46%.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on AVGO shares. William Blair restated an "outperform" rating on shares of Broadcom in a research report on Friday, March 7th. Rosenblatt Securities restated a "buy" rating and set a $250.00 price target on shares of Broadcom in a research report on Friday, March 7th. Citigroup reduced their price target on shares of Broadcom from $220.00 to $210.00 and set a "buy" rating for the company in a research report on Friday, April 11th. Mizuho reduced their price target on shares of Broadcom from $260.00 to $250.00 and set an "outperform" rating for the company in a research report on Friday, March 7th. Finally, Benchmark reaffirmed a "buy" rating and set a $255.00 price objective on shares of Broadcom in a report on Friday, March 7th. Three research analysts have rated the stock with a hold rating, twenty-five have assigned a buy rating and one has assigned a strong buy rating to the company's stock. According to MarketBeat.com, Broadcom currently has a consensus rating of "Moderate Buy" and an average target price of $229.48.

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.