Rheos Capital Works Inc. Purchases 16,000 Shares of Broadcom Inc. (NASDAQ:AVGO)

Rheos Capital Works Inc. grew its position in Broadcom Inc. (NASDAQ:AVGO) by 11.3% during the first quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 158,000 shares of the semiconductor manufacturer’s stock after buying an additional 16,000 shares during the period. Broadcom accounts for about 2.2% of Rheos Capital Works Inc.’s portfolio, making the stock its 15th largest position. Rheos Capital Works Inc.’s holdings in Broadcom were worth $26,454,000 at the end of the most recent reporting period.

Other institutional investors and hedge funds have also recently modified their holdings of the company. Daymark Wealth Partners LLC lifted its position in Broadcom by 10.2% during the first quarter. Daymark Wealth Partners LLC now owns 149,218 shares of the semiconductor manufacturer’s stock valued at $24,984,000 after purchasing an additional 13,833 shares during the period. CHICAGO TRUST Co NA raised its position in Broadcom by 10.8% during the first quarter. CHICAGO TRUST Co NA now owns 22,736 shares of the semiconductor manufacturer’s stock valued at $3,807,000 after acquiring an additional 2,224 shares in the last quarter. Destiny Wealth Partners LLC lifted its holdings in Broadcom by 22.3% in the first quarter. Destiny Wealth Partners LLC now owns 33,026 shares of the semiconductor manufacturer’s stock valued at $5,530,000 after acquiring an additional 6,013 shares during the period. Wiser Wealth Management Inc boosted its position in Broadcom by 7.6% in the 1st quarter. Wiser Wealth Management Inc now owns 1,719 shares of the semiconductor manufacturer’s stock worth $288,000 after purchasing an additional 121 shares in the last quarter. Finally, Toth Financial Advisory Corp grew its stake in shares of Broadcom by 1.9% during the 1st quarter. Toth Financial Advisory Corp now owns 34,767 shares of the semiconductor manufacturer’s stock worth $5,821,000 after purchasing an additional 649 shares during the period. Hedge funds and other institutional investors own 76.43% of the company’s stock.

Broadcom Stock Down 5.0%

AVGO stock opened at $246.95 on Monday. Broadcom Inc. has a one year low of $128.50 and a one year high of $265.43. The company has a debt-to-equity ratio of 0.98, a quick ratio of 1.07 and a current ratio of 1.17. The firm has a market cap of $1.16 trillion, a PE ratio of 201.43, a PEG ratio of 2.29 and a beta of 1.11. The firm’s 50 day moving average price is $203.73 and its 200-day moving average price is $206.81.

Broadcom (NASDAQ:AVGO) last released its quarterly earnings results on Thursday, June 5th. The semiconductor manufacturer reported $1.58 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.57 by $0.01. Broadcom had a net margin of 11.43% and a return on equity of 28.00%. The business had revenue of $15 billion for the quarter, compared to the consensus estimate of $14.98 billion. During the same period in the previous year, the firm earned $10.96 EPS. The business’s revenue was up 20.2% on a year-over-year basis. On average, equities research analysts anticipate that Broadcom Inc. will post 5.38 EPS for the current year.

Broadcom announced that its board has authorized a share repurchase program on Monday, April 7th that authorizes the company to buyback $10.00 billion in outstanding shares. This buyback authorization authorizes the semiconductor manufacturer to buy up to 1.4% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s management believes its shares are undervalued.

Broadcom Dividend Announcement

The firm also recently announced 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 0.96%. The ex-dividend date of this dividend is Friday, June 20th. Broadcom’s payout ratio is currently 88.39%.

Insider Transactions at Broadcom

In other Broadcom news, insider Mark David Brazeal sold 30,000 shares of Broadcom stock in a transaction dated Monday, March 24th. The stock was sold at an average price of $194.65, for a total transaction of $5,839,500.00. Following the completion of the sale, the insider now directly owns 490,956 shares of the company’s stock, valued at $95,564,585.40. The trade was a 5.76% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Henry Samueli sold 663,976 shares of the stock in a transaction dated 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 completion of the transaction, the director now owns 38,798,721 shares in the company, valued at approximately $7,045,847,733.60. The trade was a 1.68% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 720,576 shares of company stock valued at $131,249,694. 2.00% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

AVGO has been the topic of a number of recent analyst reports. Cantor Fitzgerald reissued an “overweight” rating and set a $300.00 price target on shares of Broadcom in a report on Friday. Benchmark upped their price objective on shares of Broadcom from $255.00 to $315.00 and gave the stock a “buy” rating in a research report on Friday. Oppenheimer increased their target price on shares of Broadcom from $225.00 to $265.00 and gave the stock an “outperform” rating in a research note on Friday, May 30th. William Blair restated an “outperform” rating on shares of Broadcom in a research note on Friday, March 7th. Finally, Bank of America upped their price target on Broadcom from $240.00 to $300.00 and gave the stock a “buy” rating in a report on Friday. Two investment analysts have rated the stock with a hold rating, twenty-seven have issued a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $270.25.

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.