Insider Selling: Broadcom Inc. (NASDAQ:AVGO) CFO Sells 56,310 Shares of Stock

Broadcom Inc. (NASDAQ:AVGO) CFO Kirsten M. Spears sold 56,310 shares of the company’s stock in a transaction that occurred on Wednesday, June 18th. The shares were sold at an average price of $251.75, for a total value of $14,176,042.50. Following the completion of the sale, the chief financial officer now owns 361,937 shares in the company, valued at approximately $91,117,639.75. This represents a 13.46% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink.

Broadcom Trading Up 1.5%

Shares of AVGO stock traded up $3.78 during trading hours on Monday, reaching $253.77. The company had a trading volume of 19,611,564 shares, compared to its average volume of 29,430,805. The company has a 50 day moving average of $220.48 and a 200 day moving average of $212.76. The company has a debt-to-equity ratio of 0.89, a current ratio of 1.08 and a quick ratio of 0.98. The firm has a market cap of $1.19 trillion, a price-to-earnings ratio of 95.04, a P/E/G ratio of 1.78 and a beta of 1.11. Broadcom Inc. has a 1-year low of $128.50 and a 1-year high of $265.43.

Broadcom (NASDAQ:AVGO) last issued its quarterly earnings data on Thursday, June 5th. The semiconductor manufacturer reported $1.58 EPS for the quarter, topping the consensus estimate 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 firm’s revenue was up 20.2% compared to the same quarter last year. During the same quarter last year, the business posted $10.96 EPS. On average, equities research analysts anticipate that Broadcom Inc. will post 5.38 EPS for the current year.

Broadcom Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, June 30th. Investors of record on Friday, June 20th will be paid a dividend of $0.59 per share. This represents a $2.36 annualized dividend and a yield of 0.93%. The ex-dividend date of this dividend is Friday, June 20th. Broadcom’s payout ratio is presently 88.39%.

Broadcom announced that its Board of Directors has approved a stock buyback 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 buy up to 1.4% of its shares through open market purchases. Shares buyback programs are often a sign that the company’s management believes its stock is undervalued.

Analysts Set New Price Targets

Several brokerages have recently commented on AVGO. Bank of America boosted their target price on Broadcom from $240.00 to $300.00 and gave the stock a “buy” rating in a report on Friday, June 6th. Oppenheimer boosted their target price on Broadcom from $225.00 to $265.00 and gave the stock an “outperform” rating in a report on Friday, May 30th. Mizuho boosted their target price on Broadcom from $300.00 to $310.00 and gave the stock an “outperform” rating in a report on Friday, June 6th. Wall Street Zen downgraded Broadcom from a “buy” rating to a “hold” rating in a report on Sunday, June 15th. Finally, Evercore ISI reissued an “outperform” rating and issued a $304.00 target price (up from $267.00) on shares of Broadcom in a report on Friday, June 6th. Three equities research analysts have rated the stock with a hold rating, twenty-five have issued a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat.com, Broadcom presently has a consensus rating of “Moderate Buy” and a consensus price target of $276.09.

Institutional Trading of Broadcom

Several hedge funds have recently added to or reduced their stakes in the business. Waddell & Associates LLC raised its holdings in Broadcom by 2.1% during the 1st quarter. Waddell & Associates LLC now owns 2,091 shares of the semiconductor manufacturer’s stock valued at $350,000 after acquiring an additional 43 shares during the period. Challenger Wealth Management increased its holdings in shares of Broadcom by 1.3% in the first quarter. Challenger Wealth Management now owns 3,504 shares of the semiconductor manufacturer’s stock worth $587,000 after purchasing an additional 45 shares during the period. SlateStone Wealth LLC increased its holdings in shares of Broadcom by 0.3% in the fourth quarter. SlateStone Wealth LLC now owns 13,832 shares of the semiconductor manufacturer’s stock worth $3,207,000 after purchasing an additional 47 shares during the period. True Wealth Design LLC increased its holdings in shares of Broadcom by 7.2% in the fourth quarter. True Wealth Design LLC now owns 712 shares of the semiconductor manufacturer’s stock worth $165,000 after purchasing an additional 48 shares during the period. Finally, Martingale Asset Management L P increased its holdings in shares of Broadcom by 1.3% in the first quarter. Martingale Asset Management L P now owns 3,876 shares of the semiconductor manufacturer’s stock worth $649,000 after purchasing an additional 48 shares during the period. Institutional investors and hedge funds own 76.43% of the company’s stock.

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.