Adams Diversified Equity Fund Inc. Trims Position in Broadcom Inc. (NASDAQ:AVGO)

Adams Diversified Equity Fund Inc. reduced its stake in shares of Broadcom Inc. (NASDAQ:AVGO) by 6.0% during the first quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 267,200 shares of the semiconductor manufacturer’s stock after selling 17,000 shares during the quarter. Broadcom accounts for approximately 1.8% of Adams Diversified Equity Fund Inc.’s portfolio, making the stock its 10th largest holding. Adams Diversified Equity Fund Inc.’s holdings in Broadcom were worth $44,737,000 as of its most recent SEC filing.

A number of other institutional investors and hedge funds have also recently modified their holdings of AVGO. SlateStone Wealth LLC lifted its holdings in shares of Broadcom by 0.3% during the fourth quarter. SlateStone Wealth LLC now owns 13,832 shares of the semiconductor manufacturer’s stock valued at $3,207,000 after purchasing an additional 47 shares during the last quarter. True Wealth Design LLC raised its holdings in Broadcom by 7.2% in the 4th quarter. True Wealth Design LLC now owns 712 shares of the semiconductor manufacturer’s stock worth $165,000 after acquiring an additional 48 shares during the last quarter. Global Strategic Investment Solutions LLC raised its holdings in Broadcom by 1.5% in the 4th quarter. Global Strategic Investment Solutions LLC now owns 3,375 shares of the semiconductor manufacturer’s stock worth $782,000 after acquiring an additional 50 shares during the last quarter. Cascade Financial Partners LLC raised its stake in Broadcom by 1.8% during the 4th quarter. Cascade Financial Partners LLC now owns 2,882 shares of the semiconductor manufacturer’s stock valued at $668,000 after buying an additional 50 shares during the last quarter. Finally, Samalin Investment Counsel LLC raised its stake in Broadcom by 1.0% during the 4th quarter. Samalin Investment Counsel LLC now owns 4,983 shares of the semiconductor manufacturer’s stock valued at $1,155,000 after buying an additional 50 shares during the last quarter. 76.43% of the stock is owned by institutional investors.

Broadcom Trading Up 0.3%

Shares of Broadcom stock opened at $264.65 on Thursday. The company has a market capitalization of $1.24 trillion, a P/E ratio of 99.12, a P/E/G ratio of 1.88 and a beta of 1.11. The company has a debt-to-equity ratio of 0.89, a quick ratio of 0.98 and a current ratio of 1.08. The company has a fifty day moving average of $225.48 and a 200 day moving average of $213.98. Broadcom Inc. has a fifty-two week low of $128.50 and a fifty-two week high of $269.87.

Broadcom (NASDAQ:AVGO) last announced its quarterly earnings results 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 analysts’ expectations of $14.98 billion. Broadcom had a net margin of 22.64% and a return on equity of 35.49%. The business’s quarterly revenue was up 20.2% compared to the same quarter last year. During the same quarter in the previous year, the company earned $10.96 EPS. On average, sell-side analysts anticipate that Broadcom Inc. will post 5.38 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, June 30th. Shareholders of record on Friday, June 20th will be paid a $0.59 dividend. This represents a $2.36 annualized dividend and a yield of 0.89%. The ex-dividend date of this dividend is Friday, June 20th. Broadcom’s payout ratio is currently 88.39%.

Broadcom announced that its Board of Directors has initiated a stock repurchase plan 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 plans are often a sign that the company’s management believes its shares are undervalued.

Wall Street Analyst Weigh In

AVGO has been the subject of a number of research reports. William Blair reiterated an “outperform” rating on shares of Broadcom in a research note on Friday, March 7th. Evercore ISI reiterated an “outperform” rating and set a $304.00 target price (up from $267.00) on shares of Broadcom in a research note on Friday, June 6th. Erste Group Bank upgraded shares of Broadcom from a “hold” rating to a “buy” rating in a research note on Thursday, June 5th. Rosenblatt Securities boosted their price objective on shares of Broadcom from $223.00 to $340.00 and gave the company a “buy” rating in a research report on Friday, June 6th. Finally, Oppenheimer boosted their price objective on shares of Broadcom from $225.00 to $265.00 and gave the company an “outperform” rating in a research report on Friday, May 30th. Two investment analysts have rated the stock with a hold rating, twenty-six have given a buy rating and two have issued a strong buy rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Buy” and an average target price of $281.25.

Insiders Place Their Bets

In other Broadcom news, insider Charlie B. Kawwas sold 10,000 shares of the business’s stock in a transaction on Wednesday, June 11th. The shares were sold at an average price of $252.88, for a total value of $2,528,800.00. Following the sale, the insider now owns 789,784 shares in the company, valued at $199,720,577.92. The trade was a 1.25% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Mark David Brazeal sold 25,000 shares of the business’s stock in a transaction on Friday, April 11th. The stock was sold at an average price of $180.00, for a total transaction of $4,500,000.00. Following the completion of the sale, the insider now owns 465,956 shares in the company, valued at approximately $83,872,080. The trade was a 5.09% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 301,468 shares of company stock worth $74,670,250 in the last 90 days. 2.00% of the stock is currently owned by corporate insiders.

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.