Broadcom Inc. (AVGO) to Issue Quarterly Dividend of $0.59 on June 30th

Broadcom Inc. (NASDAQ:AVGO) declared a quarterly dividend on Wednesday, June 4th, RTT News reports. Stockholders of record on Friday, June 20th will be paid a dividend of 0.59 per share by the semiconductor manufacturer on Monday, June 30th. This represents a $2.36 annualized dividend and a dividend yield of 0.95%. The ex-dividend date of this dividend is Friday, June 20th.

Broadcom has a payout ratio of 30.2% indicating that its dividend is sufficiently covered by earnings. Analysts expect Broadcom to earn $6.38 per share next year, which means the company should continue to be able to cover its $2.36 annual dividend with an expected future payout ratio of 37.0%.

Broadcom Trading Down 1.1%

NASDAQ:AVGO opened at $249.37 on Wednesday. Broadcom has a one year low of $128.50 and a one year high of $265.43. The business has a fifty day moving average price of $216.21 and a 200-day moving average price of $210.74. The firm has a market capitalization of $1.17 trillion, a price-to-earnings ratio of 93.40, a price-to-earnings-growth ratio of 1.79 and a beta of 1.11. The company has a debt-to-equity ratio of 0.89, a current ratio of 1.08 and a quick ratio of 0.98.

Broadcom (NASDAQ:AVGO) last issued its quarterly earnings results on Thursday, June 5th. The semiconductor manufacturer reported $1.58 EPS for the quarter, topping analysts’ consensus estimates 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% on a year-over-year basis. During the same quarter in the prior year, the business posted $10.96 earnings per share. Sell-side analysts forecast that Broadcom will post 5.38 EPS for the current year.

Broadcom declared that its board has authorized a share 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 reacquire up to 1.4% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company’s leadership believes its stock is undervalued.

Insider Transactions at Broadcom

In other Broadcom news, Director Henry Samueli sold 663,976 shares of the company’s stock in a transaction on Wednesday, March 26th. The shares were sold at an average price of $181.60, for a total value of $120,578,041.60. Following the sale, 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 transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Charlie B. Kawwas sold 10,000 shares of the company’s stock in a transaction dated Wednesday, June 11th. The stock was sold at an average price of $252.88, for a total value of $2,528,800.00. Following the completion of the sale, the insider now owns 789,784 shares in the company, valued at $199,720,577.92. The trade was a 1.25% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 848,334 shares of company stock worth $163,560,669. Insiders own 2.00% of the company’s stock.

Hedge Funds Weigh In On Broadcom

A hedge fund recently raised its stake in Broadcom stock. Revolve Wealth Partners LLC boosted its stake in Broadcom Inc. (NASDAQ:AVGO) by 10.4% in the 4th quarter, according to its most recent filing with the SEC. The fund owned 7,997 shares of the semiconductor manufacturer’s stock after purchasing an additional 756 shares during the period. Revolve Wealth Partners LLC’s holdings in Broadcom were worth $1,854,000 at the end of the most recent quarter. 76.43% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several equities analysts have recently commented on AVGO shares. Redburn Atlantic began coverage on shares of Broadcom in a report on Wednesday, May 28th. They issued a “buy” rating and a $301.00 target price on the stock. Oppenheimer boosted their target price on Broadcom from $225.00 to $265.00 and gave the stock an “outperform” rating in a research report on Friday, May 30th. Bank of America increased their price target on Broadcom from $240.00 to $300.00 and gave the company a “buy” rating in a research note on Friday, June 6th. Erste Group Bank upgraded Broadcom from a “hold” rating to a “buy” rating in a report on Thursday, June 5th. Finally, Wells Fargo & Company increased their target price on Broadcom from $230.00 to $255.00 and gave the company an “equal weight” rating in a research report on Friday, June 6th. Three analysts have rated the stock with a hold rating, twenty-five have assigned a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat.com, Broadcom currently has a consensus rating of “Moderate Buy” and an average price target of $276.09.

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.