Blue Capital Inc. Acquires New Stake in Broadcom Inc. $AVGO

Blue Capital Inc. bought a new stake in shares of Broadcom Inc. (NASDAQ:AVGO) in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm bought 11,872 shares of the semiconductor manufacturer’s stock, valued at approximately $3,273,000. Broadcom accounts for 2.3% of Blue Capital Inc.’s portfolio, making the stock its 10th biggest position.

Other institutional investors also recently bought and sold shares of the company. Vanguard Group Inc. increased its stake in Broadcom by 1.3% during the 2nd quarter. Vanguard Group Inc. now owns 483,442,939 shares of the semiconductor manufacturer’s stock worth $133,261,046,000 after buying an additional 6,222,802 shares during the period. State Street Corp grew its stake in shares of Broadcom by 0.5% in the second quarter. State Street Corp now owns 185,276,987 shares of the semiconductor manufacturer’s stock worth $51,071,601,000 after acquiring an additional 873,963 shares in the last quarter. Geode Capital Management LLC increased its position in shares of Broadcom by 2.1% during the second quarter. Geode Capital Management LLC now owns 108,610,718 shares of the semiconductor manufacturer’s stock worth $29,827,649,000 after acquiring an additional 2,226,585 shares during the period. Norges Bank acquired a new stake in shares of Broadcom in the second quarter valued at $18,579,549,000. Finally, Price T Rowe Associates Inc. MD boosted its holdings in Broadcom by 37.8% in the first quarter. Price T Rowe Associates Inc. MD now owns 65,509,579 shares of the semiconductor manufacturer’s stock valued at $10,968,270,000 after purchasing an additional 17,985,046 shares during the period. 76.43% of the stock is owned by institutional investors and hedge funds.

Insider Activity

In other Broadcom news, insider Mark David Brazeal sold 16,558 shares of Broadcom stock in a transaction that occurred on Wednesday, September 17th. The stock was sold at an average price of $347.61, for a total transaction of $5,755,726.38. Following the transaction, the insider owned 329,302 shares of the company’s stock, valued at $114,468,668.22. The trade was a 4.79% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Charlie B. Kawwas sold 3,893 shares of the firm’s stock in a transaction that occurred on Wednesday, September 17th. The stock was sold at an average price of $347.82, for a total transaction of $1,354,063.26. Following the transaction, the insider owned 25,295 shares in the company, valued at approximately $8,798,106.90. This trade represents a 13.34% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 837,433 shares of company stock worth $303,900,352 over the last ninety days. 2.00% of the stock is owned by corporate insiders.

Broadcom Trading Down 11.4%

Shares of Broadcom stock opened at $359.93 on Friday. The company has a fifty day simple moving average of $363.17 and a 200-day simple moving average of $317.38. Broadcom Inc. has a 12-month low of $138.10 and a 12-month high of $414.61. The company has a current ratio of 1.50, a quick ratio of 1.37 and a debt-to-equity ratio of 0.86. The stock has a market cap of $1.70 trillion, a price-to-earnings ratio of 75.62, a PEG ratio of 1.38 and a beta of 1.19.

Broadcom (NASDAQ:AVGO) last announced its quarterly earnings results on Thursday, December 11th. The semiconductor manufacturer reported $1.95 EPS for the quarter, topping the consensus estimate of $1.87 by $0.08. Broadcom had a net margin of 36.20% and a return on equity of 38.82%. The firm had revenue of $18.02 billion for the quarter, compared to analyst estimates of $17.46 billion. During the same period last year, the business earned $1.42 EPS. Broadcom’s revenue for the quarter was up 28.2% compared to the same quarter last year. On average, equities analysts forecast that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, December 31st. Investors of record on Monday, December 22nd will be given a $0.65 dividend. This is a boost from Broadcom’s previous quarterly dividend of $0.59. The ex-dividend date of this dividend is Monday, December 22nd. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. Broadcom’s payout ratio is currently 49.58%.

Analyst Ratings Changes

Several brokerages have weighed in on AVGO. Susquehanna restated a “positive” rating and set a $450.00 price target (up previously from $400.00) on shares of Broadcom in a report on Thursday, December 4th. Bank of America upped their target price on shares of Broadcom from $460.00 to $500.00 and gave the stock a “buy” rating in a research note on Friday. Oppenheimer raised their target price on shares of Broadcom from $435.00 to $450.00 and gave the company an “outperform” rating in a report on Friday. Cowen reiterated a “buy” rating on shares of Broadcom in a report on Friday. Finally, Piper Sandler reissued an “overweight” rating and issued a $430.00 price objective (up from $375.00) on shares of Broadcom in a research report on Friday. Three analysts have rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Buy” and an average price target of $435.85.

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.