Broadcom Inc. to Issue Quarterly Dividend of $0.59 (NASDAQ:AVGO)

Broadcom Inc. (NASDAQ:AVGO) announced a quarterly dividend on Wednesday, June 4th, RTT News reports. Stockholders of record on Friday, June 20th will be paid a dividend of 0.59 per share by the semiconductor manufacturer on Monday, June 30th. This represents a $2.36 annualized dividend and a dividend yield of 0.95%. The ex-dividend date of this dividend is Friday, June 20th.

Broadcom has a payout ratio of 30.2% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Broadcom to earn $6.38 per share next year, which means the company should continue to be able to cover its $2.36 annual dividend with an expected future payout ratio of 37.0%.

Broadcom Trading Down 1.1%

Shares of NASDAQ:AVGO opened at $249.37 on Wednesday. The company has a market cap of $1.17 trillion, a PE ratio of 93.40, a P/E/G ratio of 1.79 and a beta of 1.11. The company’s 50 day moving average is $216.21 and its two-hundred day moving average is $210.74. Broadcom has a 52 week low of $128.50 and a 52 week high of $265.43. The company has a current ratio of 1.08, a quick ratio of 0.98 and a debt-to-equity ratio of 0.89.

Broadcom (NASDAQ:AVGO) last announced its quarterly earnings results on Thursday, June 5th. The semiconductor manufacturer reported $1.58 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.57 by $0.01. Broadcom had a return on equity of 35.49% and a net margin of 22.64%. The company had revenue of $15 billion during the quarter, compared to the consensus estimate of $14.98 billion. During the same period in the previous year, the business earned $10.96 EPS. Broadcom’s revenue for the quarter was up 20.2% on a year-over-year basis. Equities analysts predict that Broadcom will post 5.38 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on the stock. UBS Group upped their target price on shares of Broadcom from $270.00 to $290.00 and gave the company a “buy” rating in a report on Friday, June 6th. Seaport Res Ptn raised Broadcom to a “strong-buy” rating in a report on Wednesday, April 30th. Rosenblatt Securities lifted their target price on Broadcom from $223.00 to $340.00 and gave the stock a “buy” rating in a research report on Friday, June 6th. JPMorgan Chase & Co. boosted their target price on Broadcom from $250.00 to $325.00 and gave the company an “overweight” rating in a report on Friday, June 6th. Finally, William Blair reissued an “outperform” rating on shares of Broadcom in a research report on Friday, March 7th. Three analysts have rated the stock with a hold rating, twenty-five have given a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat, Broadcom presently has a consensus rating of “Moderate Buy” and a consensus price target of $276.09.

Insider Buying and Selling

In other news, insider Charlie B. Kawwas sold 10,000 shares of the business’s stock in a transaction dated 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 completion of the sale, the insider now owns 789,784 shares of the company’s stock, valued at approximately $199,720,577.92. The trade was a 1.25% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Hock E. Tan sold 117,758 shares of the business’s stock in a transaction dated Thursday, June 12th. The shares were sold at an average price of $252.91, for a total value of $29,782,175.78. Following the completion of the sale, the chief executive officer now directly owns 1,014,152 shares of the company’s stock, valued at approximately $256,489,182.32. This represents a 10.40% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders sold 848,334 shares of company stock valued at $163,560,669. 2.00% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Broadcom

A hedge fund recently raised its stake in Broadcom stock. Revolve Wealth Partners LLC increased its stake in Broadcom Inc. (NASDAQ:AVGO) by 10.4% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 7,997 shares of the semiconductor manufacturer’s stock after purchasing an additional 756 shares during the quarter. Revolve Wealth Partners LLC’s holdings in Broadcom were worth $1,854,000 as of its most recent filing with the Securities and Exchange Commission. Institutional investors own 76.43% of the company’s stock.

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.

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.