Insider Selling: Broadcom Inc. (NASDAQ:AVGO) CEO Sells 117,758 Shares of Stock

Broadcom Inc. (NASDAQ:AVGO) CEO Hock E. Tan sold 117,758 shares of the business’s stock in a transaction dated Thursday, June 12th. The stock was sold at an average price of $252.91, for a total value of $29,782,175.78. Following the transaction, the chief executive officer now directly owns 1,014,152 shares of the company’s stock, valued at approximately $256,489,182.32. The trade was a 10.40% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link.

Broadcom Price Performance

Broadcom stock opened at $249.37 on Wednesday. The stock has a market capitalization of $1.17 trillion, a price-to-earnings ratio of 93.40, a PEG ratio of 1.79 and a beta of 1.11. Broadcom Inc. has a 52-week low of $128.50 and a 52-week high of $265.43. The stock’s 50 day moving average price is $216.21 and its two-hundred day moving average price is $210.74. The company has a debt-to-equity ratio of 0.89, a quick ratio of 0.98 and a current ratio of 1.08.

Broadcom (NASDAQ:AVGO) 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 firm 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 company’s revenue for the quarter was up 20.2% compared to the same quarter last year. During the same period in the prior year, the business earned $10.96 EPS. On average, equities analysts predict that Broadcom Inc. will post 5.38 earnings per share for the current year.

Broadcom Dividend Announcement

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 dividend of $0.59 per share. This represents a $2.36 dividend on an annualized basis and a dividend yield of 0.95%. The ex-dividend date is Friday, June 20th. Broadcom’s payout ratio is 88.39%.

Broadcom declared that its board has initiated a share repurchase program on Monday, April 7th that allows the company to buyback $10.00 billion in outstanding shares. This buyback authorization allows the semiconductor manufacturer to repurchase up to 1.4% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s board believes its shares are undervalued.

Hedge Funds Weigh In On Broadcom

Institutional investors and hedge funds have recently modified their holdings of the business. Barnes Dennig Private Wealth Management LLC acquired a new position in shares of Broadcom during the first quarter worth approximately $25,000. Cheviot Value Management LLC acquired a new position in shares of Broadcom during the first quarter worth approximately $25,000. Canton Hathaway LLC acquired a new position in shares of Broadcom during the fourth quarter worth approximately $26,000. Rialto Wealth Management LLC acquired a new position in shares of Broadcom during the fourth quarter worth approximately $26,000. Finally, Inlight Wealth Management LLC acquired a new position in shares of Broadcom during the first quarter worth approximately $26,000. 76.43% of the stock is currently owned by institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts have commented on AVGO shares. UBS Group boosted their target price on Broadcom from $270.00 to $290.00 and gave the stock a “buy” rating in a research note on Friday, June 6th. William Blair reaffirmed an “outperform” rating on shares of Broadcom in a research note on Friday, March 7th. Citigroup upped their price objective on Broadcom from $276.00 to $285.00 and gave the company a “buy” rating in a research note on Monday, June 9th. Redburn Atlantic initiated coverage on Broadcom in a research note on Wednesday, May 28th. They issued a “buy” rating and a $301.00 price objective for the company. Finally, Mizuho upped their price objective on Broadcom from $300.00 to $310.00 and gave the company an “outperform” rating in a research note on Friday, June 6th. 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. According to MarketBeat, Broadcom currently has an average rating of “Moderate Buy” and an average price target of $276.09.

About Broadcom

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.