2018 Predictions: Apple Buys Tesla — Cook Retires — Musk Takes The Reins

Both companies are laser-focused on user experience (UX), innovation, and maintaining/growing their respective fan-bases. Furthermore, the combination of the two companies would create a competitive barrier in AV that would be difficult for their competition to overcome. As for Elon Musk, he brings …
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“iCar” concept art.

Every year pundits, analysts, bloviators, and anyone with a voice make outlandish predictions for the coming year. Most do not come true, but it is nice to be the guy that got it right, even if it was a small prediction. In keeping with this tradition, I submit my 2018 predictions for the Internet of Things (IoT), Autonomous Vehicles (AV), and the systems and software that support each. Additionally, I will attempt to cut through the hype and identify a few companies to watch in the coming year.

  1. The IoT industry will fall short in their attempt to push IoT Proof of Concepts (PoC) to production deployments. It’s true; most IoT projects have a difficult time moving beyond testing cycles to production, especially distributed projects and those that are at scale. For many years, traction in this industry has been largely around Industrial IoT (IIoT), especially in industries like energy/Oil & Gas, manufacturing, and transportation. Consumer-centric industries like smart cities, healthcare, and retail show tremendous potential, but they lag those industries that have been integrating operational technologies (OT) for many years, from companies like Siemens, ABB, National Instruments, and others. Don’t get me wrong, IoT represents a significant phase shift in efficiency and automation. However, there are many regulatory, infrastructure, and privacy issues, as well as a talent gap that needs to be solved, before we see the growth many of the bloviating heads are predicting in 2018.

Hype: While many predict 2018 to be the year of production IoT, I believe that over 60% of the projects in the PoC phase will fall short from a deployment and expectations perspective—especially when considering security, privacy, infrastructure, and risk management challenges. No CEO wants to show up on the cover of the WSJ as the latest casualty of an attack from the edge, and that fear is enough to significantly slow production deployments.

Companies to Watch:DellEMC, Fog Horn, HPE, PTC, Siemens, etc.

  1. Tim Cook will retire from Apple and go into politics, while Apple Inc. will acquire Tesla. Elon Musk will take the reins, spearheading the production-ready Level 5 (full autonomy) “iCar” by 2020. Even though I am having a bit of fun, this prediction is not preposterous. Apple has been riding the personal device wave for many years, and Tesla has proven themselves to be the vanguard of innovation when it comes to automation. If you have ever been in a Tesla, it is almost like driving a magical iPad on wheels. Both companies are laser-focused on user experience (UX), innovation, and maintaining/growing their respective fan-bases. Furthermore, the combination of the two companies would create a competitive barrier in AV that would be difficult for their competition to overcome. As for Elon Musk, he brings the charisma, vision, and drive (not to mention quirkiness) that was partially lost when Steve Jobs passed away. Not that Apple needs a shot in the arm, but there is not another CEO in the industry that can get away with driving an electronic semi truck onto the stage.

Hype: This prediction is largely conjecture. However, I do believe we will someday have a choice between an iOS or Android operating system in our cars. The AV industry is moving very quickly to get to level 3-4 production vehicles (meaning mostly autonomous). There are still many hurdles to overcome in the AV space—specifically ethics, regulation, Moore’s Law, storage, compute, and last-mile infrastructure—before it becomes a true reality. Every chip manufacturer and OEM in the world wants to profit from these mobile data centers. The AV industry is ripe for consolidation and to the victor will go the spoils. Sadly, I also predicted Bitcoin would not survive past 2016.

Companies to WatchApple, Google, Intel, Microsoft, NVIDIA, Tesla, and the entire tech industry—if it comes true.

  1. Open Source and Software Defined “everything” will continue to grow as a viable option for many enterprises. It was not too long ago that Open Source software was simply considered free software, developed by hackers and crackers to avoid paying licensing fees. Over the past several years, Open Source on Linux has emerged as the preferred method for most developers entering the workforce. Additionally, an increasing number of enterprises and DevOps organizations—especially those that leverage agile development environments—have adopted Open Source and Linux as their preferred development environment and operating system (OS). With the convenience and efficiencies Open Source provides, communication service providers, telecoms, and many enterprises will continue to turn away from expensive closed proprietary dinosaur systems of the past—especially when it comes to networking, WAN, and data center infrastructure. Software Defined (SDx) means decoupling the operating system from the hardware, thereby allowing users to have the same functionality or network functions provided by proprietary systems (like network switches, routers, firewalls, and load balancers, but run on commodity hardware). Once you separate the OS from the hardware, organizations can deliver their services and software much faster, less expensively, and more efficiently.

Hype: Not much hype around Open Source. At one point it was a competitive advantage for companies to leverage Open Source to develop and deploy applications faster and at a lower cost. As the industry has continued to evolve, Open Source has become competitive parity and those organizations who ignore it do so at their own peril.

As for SDx, not everything is a good candidate for “Software Defined.” Recently, I was briefed by a company that claimed to be the first Software Defined software company in the world—the conversation did not go well. That said, there are tremendous efficiencies and cost benefits to SDx, especially as the number of IoT or edge devices grow. However, the SDx market has been slow to address many of the security issues at the edge. In addition, I believe the SD-WAN marketplace will not see much growth in 2018, and will die an unceremonious death over the next several years.

Companies to Watch:BigSwitch, Canonical/Ubuntu, Centos, Cisco, DellEMC ( VMware NSX) Ericsson, HPE/SUSE, Huawei, Inocybe, Intel, Lumina Networks, Microsoft, Nokia, and Red Hat

In many respects, I believe 2018 will be more of the same for the technology industry—which is why I expect several big acquisitions. Additionally, I expect 2018 will be the year of hype, especially with Artificial Intelligence (AI) and containers. Regarding AI, many companies will continue to mistake AI with Machine Learning (ML), and ML with data analytics. Moreover, I believe containers (especially process and application) will continue to thrive in development and DevOps environments as a way to deploy code more efficiently. However, the massive hyperbole from celebrity CEOs breathlessly pushing forward machine containers and a marginal Kubernetes (K8s) narrative will likely fall short—though Rancher Labs K8s distribution on Ubuntu and Red Hat’s OpenShift do show promise, if they can monetize, execute, and get past the hype.

Disclaimer: Moor Insights & Strategy, like all research and analyst firms, provides or has provided research, analysis, advising and/or consulting to many high-tech companies in the industry mentioned in this article, including Apple Inc., DellEMC, Hewlett Packard Enterprise, Intel, Microsoft, NVIDIA, Qualcomm, Red Hat. The author does not have any investment positions in any of the companies named in this article.

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Best Buys In The AI Race: Part 1 – Nvidia

If we wanted to focus on the fundamental elements that make AI possible, it’d have to be the GPUs (Think 24 trillion operations per second with Nvidia’s (NASDAQ:NVDA) current Autonomous Car 2 pack GPU). Therefore, we’ll focus on how exposed NVDA is to industries utilizing AI with the assumption …

A Brief History of AI and GPUs

Each of the three last industrial revolutions has spawned new industries and created fortunes for innovative companies – and this time around is no different. At the heart of the fourth revolution is artificial intelligence, a broad technology that is already laying roots in nearly every industry. Forbes’ estimates by 2035 AI will provide a $14T economic boost to the global economy and increase corporate profitability by 38%. This growth will contribute an additional 1.7% to annual GDP by 2035.

Without knowing which industries are destined to benefit the most from AI, the best play may be to invest in the ingredients that make AI possible: Chips. A majority of AI is deep learning, which requires significant computational resources:

Deep learning powers many scenarios including autonomous cars, cancer diagnosis, computer vision, speech recognition and many other intelligent use cases.”

Deep learning algorithms perform complex statistical computations that train the network to recognize patterns from massive amounts of data. The best processing units to perform these tasks are graphics processing units (GPU). A GPU operates like a neural network, which can manage millions of operations in parallel. A computer processing unit (CPU), in contrast, is designed to handle calculations in sequential order. This means operations wait for a previous calculation to complete, thereby slowing down the process. For this reason, GPU’s are preferred over CPUs for deep learning for the foreseeable future. GPU shipments are projected to reach $157B by 2022, representing CAGR 35.6% as forecast by Allied Market Research.

The Ascent

Market Opportunity

If we wanted to focus on the fundamental elements that make AI possible, it’d have to be the GPUs (Think 24 trillion operations per second with Nvidia’s (NASDAQ:NVDA) current Autonomous Car 2 pack GPU). Therefore, we’ll focus on how exposed NVDA is to industries utilizing AI with the assumption that demand growth will accelerate NVDA’s growth.

NVDA was the first company to invent the GPU in 1999 for the electronics gaming industry. The company has grown its market share of the electronics gaming industry to greater than 70%. The company makes its money by selling patented chips for GPUs, or leasing their design patents for other manufacturers to borrow.

This year was a record year in revenues for NVDA across all its segments and especially its AI-related platforms. Data Center shipments alone surpassed 180% YoY growth while Autonomous Machines jumped 22%.

Source: NVIDIA – Next Wave of Computing September 2017

Current year projections for the Datacenter platform are $1.83B in revenues with Auto expected to hit $571B. This represents 25% of total current revenue for the company in AI-related markets. Based on the graphic below, NVDA expects market opportunity to grow in Data Center and Auto to represent 84% of its future total addressable market (TAM). This is exactly the type of exposure we’re looking for in a company to ride the AI boom.

Products and Moat

NVDA’s most recent chip launch was this December with its Titan V chip which targets machine learning scientists who use PCs. It also offers its Tesla series and Pascal series, among others, to meet the high computing demands of data centers. NVDA plans to launch multiple new GPU lineups in 2018 that are expected to continue to lead the market in product innovation. These launches will focus on its strategic initiatives at the heart of where AI investors want to be: Data centers and autonomous machines.

Advanced Micro Devices Inc. (AMD) is NVDA’s only direct competitor in the discrete GPU segment. Discrete GPUs are high-power graphics cards that allow the most sophisticated machine learning algorithms to execute. Most of AMD’s current focus is in PCs and gaming, of which NVDA is favored among enthusiasts (four times out of seven vs. two times out of seven for AMD). Intel Corporation (INTC) also competes and dominates the general GPU market, but currently only sells low power GPUs. INTC has gradually been losing market share as demand has shifted toward higher performing GPUs.

Image Source: Global GPU Shipments Market Share by Producer

There are a few upcoming threats for NVDA investors to keep an eye on. INTC has taken notice of its loss in market share and hopes to have a discrete GPU launched by next year (2018) with its hire of Raja Koduri. The hope for Intel is that Koduri will drive entrance into the discrete GPU market and capture back some of the market share its losing.

In this position, Koduri will expand Intel’s leading position in integrated graphics for the PC market with high-end discrete graphics solutions for a broad range of computing segments.”

However, this is not the first time INTC has attempted to challenge NVDA in the high performing GPU market. Also, it appears INTC has a lot of catching up to do:

A good way to think of the difference between the two is that the high end of the integrated Intel GPU isn’t even equivalent to the low end of an NVIDIA GPU.”

Other large competitors, like Google (NASDAQ:GOOG) (NASDAQ:GOOGL) and IBM (NYSE:IBM), have also shown interest in entering the space with completely new chip designs (i.e. TPU). Fortunately for NVDA, most companies already are building their ecosystems around a GPU type chip, so switching costs will be exceedingly high should any unique design enter the marketplace.

With a market share climbing in all categories of its business and multiple product launches ahead of it, NVDA should continue to remain the market leader of GPUs.

Fair Value

A discounted cash flow (DCF) analysis is used here as a gut check on NVDA’s current market price. This will help gauge a reasonable price for growth.

For this forward-looking analysis, we’ll use eight-year projected revenues as I find this a happy median between more predictable five-year analyses and the bolder 10-year analyses. We’ll also assume growth of 4% into perpetuity to match current GDP plus the forecast gains from AI. Finally, a high value, fair value and low value will be presented representing 20% upside and 20% downside to projected cash flows.

NVDA’s management does not provide much financial guidance beyond next year. Therefore, we will make some assumptions on revenue growth based on TAM, AI market projections, and historical performance.

Average growth rates for NVDA’a platform were taken from their 3Q2017 report. Taking into consideration the potential for autonomous machines and cars along with virtual reality, these growth metrics seem reasonable for the future. We’ll assume NVDA grows its GPU presence from 19% market share to 25% market share as demand ships to its high-power GPUs. This results in NVDA capturing $7.5B of its $30B TAM.

The gaming TAM market projections get a little strange. NVDA recognizes a $7B annual TAM in gaming by 2020, which is actually a contraction from this year’s TAM ($5.5B revenues / 70% market share = $7.9B). We’ll include the contraction in revenue projection below.

Image Sources: Excel Spreadsheet and DCF model developed by the Author

For free cash flows (FCF), we’ll take EBIT x (1-tax rate) + depreciation + amortization – change in net working capital – capital expenditures. FCF has grown 37% annually the past four years. NVDA’s annual growth in COGS (+15%), SG&A (+15%), and R&D (+3%) the past four years have all trailed revenue growth (19%), which means we should expect EBITDA to increase into the future. We’ll set a future target of 34.3% EBITDA, which is slightly above this years projected EBITDA of 32.1%.

Remodeling the Future

This is where we get to have some fun and try to simulate future possibilities. If only I had Japan’s K Supercomputer to do it for me (it actually exists!). NVDA’s fair value based on this DCF is $172, which is about 14% below the current market price of $197. But what if revenue growth really lived up to Allied Market Research’s forecast of 35.6% CAGR, or if a recession hit and dropped growth to 0%?

Conclusion

The fair value analysis is conservative in that it assumes gaming revenues contract. We also took a total GPU CAGR of 18.4% that is below the Allied Market Research forecast of 35.6%. However, as a conservative investor, I will let the excitement of NVDA’s 31% growth last quarter wear off into next quarter and hope the stock comes down. I also anticipate some of the winners in tech will be sold off early next year with the new tax bill as investors rotate into sectors more positively impacted by the tax rate changes. If this happens, I will look to buy into the dip of this company positioned for continued success.

For those more optimistic about the future of AI and its growth opportunity, now may be a good time to load up on NVDA while keeping an eye on how the GPU market progresses.

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As Nvidia (NVDA) Shares Rose, Capital One National Association Boosted Holding; As …

Capital One National Association increased its stake in Nvidia Corp (NVDA) by 86.29% based on its latest 2017Q3 regulatory filing with the SEC. Capital One National Association bought 2,240 shares as the company’s stock rose 26.83% with the market. The institutional investor held 4,836 shares of the …

December 21, 2017 – By Adrian Erickson

Capital One National Association increased its stake in Nvidia Corp (NVDA) by 86.29% based on its latest 2017Q3 regulatory filing with the SEC. Capital One National Association bought 2,240 shares as the company’s stock rose 26.83% with the market. The institutional investor held 4,836 shares of the semiconductors company at the end of 2017Q3, valued at $865,000, up from 2,596 at the end of the previous reported quarter. Capital One National Association who had been investing in Nvidia Corp for a number of months, seems to be bullish on the $119.13 billion market cap company. The stock decreased 0.11% or $0.22 during the last trading session, reaching $196.58. About 2.02 million shares traded. NVIDIA Corporation (NASDAQ:NVDA) has risen 212.28% since December 21, 2016 and is uptrending. It has outperformed by 195.58% the S&P500.

Marc Majzner increased its stake in Constellium Nv (CSTM) by 27.55% based on its latest 2017Q3 regulatory filing with the SEC. Clearline Capital Lp bought 53,299 shares as the company’s stock declined 23.17% while stock markets rallied. The hedge fund run by Marc Majzner held 246,793 shares of the metal fabrications company at the end of 2017Q3, valued at $2.53 million, up from 193,494 at the end of the previous reported quarter. Clearline Capital Lp who had been investing in Constellium Nv for a number of months, seems to be bullish on the $1.45B market cap company. The stock decreased 1.60% or $0.175 during the last trading session, reaching $10.775. About 778,746 shares traded. Constellium N.V (NYSE:CSTM) has risen 20.46% since December 21, 2016 and is uptrending. It has outperformed by 3.76% the S&P500.

Capital One National Association, which manages about $1.43B US Long portfolio, decreased its stake in Blackrock Inc (NYSE:BLK) by 1,364 shares to 5,773 shares, valued at $2.58 million in 2017Q3, according to the filing. It also reduced its holding in Newell Brands Inc (NYSE:NWL) by 10,919 shares in the quarter, leaving it with 15,430 shares, and cut its stake in Marketaxess Hldgs Inc (NASDAQ:MKTX).

Among 44 analysts covering Nvidia Corporation (NASDAQ:NVDA), 25 have Buy rating, 4 Sell and 15 Hold. Therefore 57% are positive. Nvidia Corporation had 172 analyst reports since August 3, 2015 according to SRatingsIntel. The rating was maintained by Canaccord Genuity on Friday, November 11 with “Buy”. As per Friday, October 30, the company rating was upgraded by Morgan Stanley. The firm earned “Buy” rating on Monday, July 24 by Canaccord Genuity. The stock of NVIDIA Corporation (NASDAQ:NVDA) has “Hold” rating given on Friday, November 6 by Topeka Capital Markets. The stock of NVIDIA Corporation (NASDAQ:NVDA) earned “Hold” rating by Stifel Nicolaus on Thursday, August 10. As per Monday, August 3, the company rating was upgraded by Macquarie Research. The company was maintained on Friday, November 10 by Bank of America. The firm has “Outperform” rating given on Friday, February 12 by Wedbush. The firm has “Buy” rating given on Friday, August 7 by Stifel Nicolaus. As per Friday, August 11, the company rating was maintained by Needham.

Investors sentiment increased to 1.3 in 2017 Q3. Its up 0.09, from 1.21 in 2017Q2. It is positive, as 45 investors sold NVDA shares while 282 reduced holdings. 127 funds opened positions while 298 raised stakes. 387.15 million shares or 0.29% less from 388.29 million shares in 2017Q2 were reported. Point72 Asia (Hong Kong) holds 148 shares or 0.02% of its portfolio. Sei Invs has 480,469 shares for 0.31% of their portfolio. Fukoku Mutual Life Company reported 0.14% of its portfolio in NVIDIA Corporation (NASDAQ:NVDA). First Allied Advisory Service Inc holds 0.11% of its portfolio in NVIDIA Corporation (NASDAQ:NVDA) for 14,099 shares. Boston Advsrs Ltd reported 0.04% stake. Intersect Llc owns 0.16% invested in NVIDIA Corporation (NASDAQ:NVDA) for 1,540 shares. Buckingham Asset has invested 0.07% in NVIDIA Corporation (NASDAQ:NVDA). Howe And Rusling accumulated 154 shares or 0.01% of the stock. Sg Americas Securities Limited Liability stated it has 0.31% in NVIDIA Corporation (NASDAQ:NVDA). Tci Wealth Advsrs reported 554 shares. Parkwood Llc stated it has 1,674 shares or 0.04% of all its holdings. Fred Alger Mgmt Inc holds 378,985 shares or 0.32% of its portfolio. Mycio Wealth Limited Liability Co has 1,149 shares. Criterion Cap Mgmt Lc stated it has 49,300 shares or 0.37% of all its holdings. Verition Fund Management Limited Liability Com reported 0.07% in NVIDIA Corporation (NASDAQ:NVDA).

Since August 14, 2017, it had 0 buys, and 11 insider sales for $81.47 million activity. The insider SEAWELL A BROOKE sold 30,000 shares worth $5.11M. 171 shares valued at $31,732 were sold by Kress Colette on Wednesday, December 13. Another trade for 110,000 shares valued at $18.27M was sold by HUANG JEN HSUN. $1.71M worth of NVIDIA Corporation (NASDAQ:NVDA) was sold by Byron Michael on Monday, October 2. JONES HARVEY C sold $18.57M worth of stock. STEVENS MARK A also sold $15.02M worth of NVIDIA Corporation (NASDAQ:NVDA) on Wednesday, September 20.

Clearline Capital Lp, which manages about $865.30M and $137.36 million US Long portfolio, decreased its stake in Blackhawk Network Hldgs Inc (NASDAQ:HAWK) by 69,004 shares to 135,019 shares, valued at $5.91M in 2017Q3, according to the filing. It also reduced its holding in Viacom Inc New (NASDAQ:VIAB) by 121,429 shares in the quarter, leaving it with 357,313 shares, and cut its stake in Conduent Inc.

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As Nxp Semiconductors Nv (NXPI) Share Value Rose, Shareholder Vigilant Capital Management …

Vigilant Capital Management Llc decreased its stake in Nxp Semiconductors Nv (NXPI) by 83.24% based on its latest 2017Q3 regulatory filing with the SEC. Vigilant Capital Management Llc sold 85,925 shares as the company’s stock rose 5.22% with the market. The institutional investor held 17,305 …

December 21, 2017 – By Maria Brooks

Vigilant Capital Management Llc decreased its stake in Nxp Semiconductors Nv (NXPI) by 83.24% based on its latest 2017Q3 regulatory filing with the SEC. Vigilant Capital Management Llc sold 85,925 shares as the company’s stock rose 5.22% with the market. The institutional investor held 17,305 shares of the semiconductors company at the end of 2017Q3, valued at $1.96M, down from 103,230 at the end of the previous reported quarter. Vigilant Capital Management Llc who had been investing in Nxp Semiconductors Nv for a number of months, seems to be less bullish one the $39.54 billion market cap company. The stock decreased 0.09% or $0.11 during the last trading session, reaching $116.63. About 201,050 shares traded. NXP Semiconductors N.V. (NASDAQ:NXPI) has risen 24.67% since December 21, 2016 and is uptrending. It has outperformed by 7.97% the S&P500.

Analysts await NXP Semiconductors N.V. (NASDAQ:NXPI) to report earnings on February, 7. They expect $1.61 earnings per share, down 5.85 % or $0.10 from last year’s $1.71 per share. NXPI’s profit will be $545.84 million for 18.11 P/E if the $1.61 EPS becomes a reality. After $1.27 actual earnings per share reported by NXP Semiconductors N.V. for the previous quarter, Wall Street now forecasts 26.77 % EPS growth.

More notable recent NXP Semiconductors N.V. (NASDAQ:NXPI) news were published by: Realmoney.Thestreet.com which released: “A Higher Bid for NXP Semiconductor Seems Unlikely” on December 11, 2017, also Nasdaq.com with their article: “Qualcomm Extends Tender Offer For NXP Semiconductors Until On Jan. 12, 2018” published on December 15, 2017, Fool.com published: “Is Qualcomm’s Grip on NXP Semiconductors Getting Any Tighter?” on December 15, 2017. More interesting news about NXP Semiconductors N.V. (NASDAQ:NXPI) were released by: Globenewswire.com and their article: “NXP and Baidu Partner on Apollo Open Autonomous Driving Platform” published on December 21, 2017 as well as Businesswire.com‘s news article titled: “Elliott Believes NXP Semiconductors Is Worth $135 Per Share on a Standalone Basis” with publication date: December 11, 2017.

NXP Semiconductors N.V. (NASDAQ:NXPI) Ratings Coverage

Among 28 analysts covering NXP Semiconductors NV (NASDAQ:NXPI), 8 have Buy rating, 1 Sell and 19 Hold. Therefore 29% are positive. NXP Semiconductors NV has $140 highest and $90 lowest target. $105.86’s average target is -9.23% below currents $116.63 stock price. NXP Semiconductors NV had 60 analyst reports since August 3, 2015 according to SRatingsIntel. The firm has “Underperform” rating by CLSA given on Friday, October 28. Canaccord Genuity maintained NXP Semiconductors N.V. (NASDAQ:NXPI) on Friday, October 30 with “Buy” rating. The company was downgraded on Friday, October 28 by Robert W. Baird. Summit Redstone Partners initiated it with “Buy” rating and $91 target in Wednesday, July 20 report. The firm earned “Buy” rating on Friday, April 29 by Jefferies. The rating was downgraded by Jefferies to “Hold” on Thursday, October 27. Drexel Hamilton maintained the stock with “Hold” rating in Thursday, August 3 report. Drexel Hamilton maintained NXP Semiconductors N.V. (NASDAQ:NXPI) rating on Thursday, October 26. Drexel Hamilton has “Hold” rating and $110.0 target. The stock of NXP Semiconductors N.V. (NASDAQ:NXPI) earned “Buy” rating by Needham on Thursday, September 7. As per Monday, April 11, the company rating was initiated by Nomura.

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Hock E. Tan Sells 789 Shares of Broadcom Limited (AVGO) Stock

Broadcom logo Broadcom Limited (NASDAQ:AVGO) CEO Hock E. Tan sold 789 shares of the firm’s stock in a transaction on Monday, December 18th. The stock was sold at an average price of $264.38, for a total value of $208,595.82. The sale was disclosed in a filing with the SEC, which can be …

Broadcom logoBroadcom Limited (NASDAQ:AVGO) CEO Hock E. Tan sold 789 shares of the firm’s stock in a transaction on Monday, December 18th. The stock was sold at an average price of $264.38, for a total value of $208,595.82. The sale was disclosed in a filing with the SEC, which can be accessed through this link.

Hock E. Tan also recently made the following trade(s):

  • On Friday, December 15th, Hock E. Tan sold 20,000 shares of Broadcom stock. The stock was sold at an average price of $259.68, for a total value of $5,193,600.00.
  • On Monday, December 18th, Hock E. Tan sold 20,789 shares of Broadcom stock. The stock was sold at an average price of $259.85, for a total value of $5,402,021.65.
  • On Wednesday, November 15th, Hock E. Tan sold 20,000 shares of Broadcom stock. The stock was sold at an average price of $260.03, for a total value of $5,200,600.00.

Shares of Broadcom Limited (NASDAQ:AVGO) traded down $0.77 on Thursday, hitting $264.87. The stock had a trading volume of 112,860 shares, compared to its average volume of 2,812,174. The company has a debt-to-equity ratio of 0.75, a quick ratio of 5.80 and a current ratio of 6.39. The firm has a market cap of $107,584.17, a P/E ratio of 18.31, a PEG ratio of 1.13 and a beta of 1.05. Broadcom Limited has a 12 month low of $173.31 and a 12 month high of $285.68.

Broadcom (NASDAQ:AVGO) last issued its earnings results on Wednesday, December 6th. The semiconductor manufacturer reported $4.59 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $4.52 by $0.07. The company had revenue of $4.84 billion during the quarter, compared to the consensus estimate of $4.84 billion. Broadcom had a return on equity of 28.61% and a net margin of 10.18%. The firm’s revenue for the quarter was up 17.1% compared to the same quarter last year. During the same period last year, the business posted $3.47 EPS. equities research analysts predict that Broadcom Limited will post 16.99 earnings per share for the current fiscal year.

The company also recently announced a quarterly dividend, which will be paid on Friday, December 29th. Stockholders of record on Tuesday, December 19th will be paid a $1.75 dividend. The ex-dividend date is Monday, December 18th. This is an increase from Broadcom’s previous quarterly dividend of $1.02. This represents a $7.00 annualized dividend and a dividend yield of 2.64%. Broadcom’s dividend payout ratio (DPR) is currently 164.32%.

AVGO has been the subject of several analyst reports. Mizuho reaffirmed a “buy” rating and set a $290.00 target price (up from $275.00) on shares of Broadcom in a research report on Saturday, August 26th. Morgan Stanley reaffirmed a “buy” rating and set a $290.00 target price on shares of Broadcom in a research report on Friday, August 25th. Oppenheimer reaffirmed a “buy” rating and set a $275.00 target price on shares of Broadcom in a research report on Friday, August 25th. MKM Partners raised their target price on Broadcom from $261.00 to $274.00 and gave the stock a “buy” rating in a research report on Friday, August 25th. Finally, Deutsche Bank raised their target price on Broadcom from $275.00 to $295.00 and gave the stock a “buy” rating in a research report on Friday, August 25th. Four equities research analysts have rated the stock with a hold rating, thirty-three have assigned a buy rating and one has issued a strong buy rating to the company. Broadcom has a consensus rating of “Buy” and a consensus price target of $303.29.

Several institutional investors and hedge funds have recently modified their holdings of AVGO. Mountain Capital Investment Advisors Inc acquired a new stake in shares of Broadcom in the 2nd quarter valued at about $113,000. AllSquare Wealth Management LLC acquired a new stake in shares of Broadcom in the 3rd quarter valued at about $113,000. Tower Research Capital LLC TRC boosted its stake in Broadcom by 473.0% during the 2nd quarter. Tower Research Capital LLC TRC now owns 573 shares of the semiconductor manufacturer’s stock valued at $134,000 after purchasing an additional 473 shares during the last quarter. Carroll Financial Associates Inc. boosted its stake in Broadcom by 59.0% during the 3rd quarter. Carroll Financial Associates Inc. now owns 593 shares of the semiconductor manufacturer’s stock valued at $144,000 after purchasing an additional 220 shares during the last quarter. Finally, Balentine LLC boosted its stake in Broadcom by 21.9% during the 2nd quarter. Balentine LLC now owns 635 shares of the semiconductor manufacturer’s stock valued at $148,000 after purchasing an additional 114 shares during the last quarter. Institutional investors own 88.78% of the company’s stock.

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About Broadcom

Broadcom Limited is a designer, developer and global supplier of a range of semiconductor devices with a focus on digital and mixed signal complementary metal oxide semiconductor (CMOS)-based devices and analog III-V based products. The Company operates through four segments: Wired Infrastructure, Wireless Communications, Enterprise Storage, and Industrial & Other.

Insider Buying and Selling by Quarter for Broadcom (NASDAQ:AVGO)

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