Capital Research Global Investors Reduces Holdings in Broadcom Inc. $AVGO

Capital Research Global Investors reduced its holdings in shares of Broadcom Inc. (NASDAQ:AVGO) by 4.2% in the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 87,716,681 shares of the semiconductor manufacturer’s stock after selling 3,824,140 shares during the quarter. Broadcom makes up about 5.4% of Capital Research Global Investors’ portfolio, making the stock its 3rd biggest holding. Capital Research Global Investors owned 1.86% of Broadcom worth $28,938,498,000 at the end of the most recent quarter.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Longfellow Investment Management Co. LLC bought a new position in shares of Broadcom in the second quarter valued at about $27,000. Teachers Insurance & Annuity Association of America acquired a new position in Broadcom in the 2nd quarter valued at about $28,000. New England Capital Financial Advisors LLC acquired a new position in Broadcom in the 2nd quarter valued at about $31,000. JCIC Asset Management Inc. bought a new position in Broadcom in the 3rd quarter valued at about $31,000. Finally, Manning & Napier Advisors LLC acquired a new stake in Broadcom during the third quarter worth approximately $34,000. 76.43% of the stock is owned by institutional investors.

Insider Activity

In other news, Director Harry L. You purchased 1,000 shares of the business’s stock in a transaction dated Thursday, December 18th. The stock was bought at an average price of $325.13 per share, with a total value of $325,130.00. Following the acquisition, the director owned 36,602 shares in the company, valued at approximately $11,900,408.26. The trade was a 2.81% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, insider Mark David Brazeal sold 30,000 shares of the stock in a transaction that occurred on Tuesday, January 6th. The stock was sold at an average price of $347.12, for a total transaction of $10,413,600.00. Following the sale, the insider owned 210,573 shares in the company, valued at $73,094,099.76. This represents a 12.47% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 458,785 shares of company stock valued at $155,508,157. Company insiders own 1.90% of the company’s stock.

Wall Street Analysts Forecast Growth

AVGO has been the subject of a number of research analyst reports. Deutsche Bank Aktiengesellschaft set a $430.00 price objective on Broadcom and gave the stock a “buy” rating in a report on Friday, December 12th. TD Cowen restated a “buy” rating on shares of Broadcom in a research note on Friday, December 12th. Morgan Stanley upped their price objective on Broadcom from $462.00 to $470.00 and gave the company an “overweight” rating in a report on Friday. Wells Fargo & Company raised Broadcom from an “equal weight” rating to an “overweight” rating and lifted their target price for the stock from $410.00 to $430.00 in a report on Thursday, January 15th. Finally, Benchmark reissued a “buy” rating and issued a $485.00 target price on shares of Broadcom in a research report on Thursday, March 5th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $435.30.

Broadcom Price Performance

Broadcom stock opened at $345.75 on Tuesday. The firm has a market cap of $1.64 trillion, a PE ratio of 67.53, a price-to-earnings-growth ratio of 0.77 and a beta of 1.22. The company has a debt-to-equity ratio of 0.80, a current ratio of 1.90 and a quick ratio of 1.73. The stock’s fifty day moving average price is $333.68 and its two-hundred day moving average price is $343.89. Broadcom Inc. has a one year low of $138.10 and a one year high of $414.61.

Broadcom (NASDAQ:AVGO) last released its earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.03 by $0.02. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.The company had revenue of $19.31 billion for the quarter, compared to analyst estimates of $19.10 billion. During the same period in the prior year, the firm posted $1.60 EPS. Broadcom’s quarterly revenue was up 29.5% on a year-over-year basis. As a group, research analysts expect that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Monday, March 23rd will be paid a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date is Monday, March 23rd. Broadcom’s dividend payout ratio is presently 50.78%.

About Broadcom

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops and supplies semiconductor and infrastructure software solutions for a broad range of markets. The company’s semiconductor business provides components and systems for wired and wireless communications, enterprise and cloud storage, networking and broadband access, serving original equipment manufacturers, cloud service providers, telecommunications carriers and industrial customers worldwide. Broadcom is headquartered in Irvine, California, and operates globally with research, development and sales organizations across North America, Europe and Asia.

On the semiconductor side, Broadcom’s portfolio includes system-on-chip (SoC) and application-specific integrated circuit (ASIC) solutions, radio-frequency and connectivity components, Ethernet switching and PHY devices, storage adapters and controllers, optical transceivers and other networking silicon.