Broadcom (NASDAQ:AVGO) CEO Sells $42,382,600.00 in Stock

Broadcom Inc. (NASDAQ:AVGO) CEO Hock Tan sold 130,000 shares of the business’s stock in a transaction on Thursday, December 18th. The stock was sold at an average price of $326.02, for a total transaction of $42,382,600.00. Following the completion of the transaction, the chief executive officer directly owned 595,638 shares in the company, valued at $194,189,900.76. This trade represents a 17.92% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link.

Broadcom Stock Performance

AVGO opened at $350.18 on Thursday. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.58 and a current ratio of 1.71. The stock has a market capitalization of $1.66 trillion, a price-to-earnings ratio of 73.57, a PEG ratio of 1.20 and a beta of 1.19. The company has a fifty day moving average of $362.76 and a 200 day moving average of $323.01. Broadcom Inc. has a fifty-two week low of $138.10 and a fifty-two week high of $414.61.

Broadcom (NASDAQ:AVGO) last released its quarterly earnings data on Thursday, December 11th. The semiconductor manufacturer reported $1.95 EPS for the quarter, beating the consensus estimate of $1.87 by $0.08. Broadcom had a net margin of 36.20% and a return on equity of 37.45%. The business had revenue of $18.02 billion during the quarter, compared to the consensus estimate of $17.46 billion. During the same quarter in the prior year, the firm earned $1.42 EPS. The business’s revenue was up 28.2% on a year-over-year basis. As a group, sell-side analysts forecast that Broadcom Inc. will post 5.38 earnings per share for the current fiscal year.

Broadcom Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 31st. Shareholders of record on Monday, December 22nd will be paid a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend is Monday, December 22nd. This is a positive change from Broadcom’s previous quarterly dividend of $0.59. Broadcom’s dividend payout ratio is presently 54.62%.

Analysts Set New Price Targets

A number of research analysts recently weighed in on the stock. The Goldman Sachs Group set a $435.00 target price on shares of Broadcom and gave the company a “buy” rating in a report on Tuesday, November 25th. Rosenblatt Securities lifted their price objective on shares of Broadcom from $400.00 to $440.00 and gave the stock a “buy” rating in a research note on Tuesday, December 9th. Morgan Stanley boosted their target price on shares of Broadcom from $443.00 to $462.00 and gave the stock an “overweight” rating in a report on Friday, December 12th. Wall Street Zen raised shares of Broadcom from a “hold” rating to a “buy” rating in a report on Saturday, December 13th. Finally, KeyCorp reiterated an “overweight” rating and issued a $500.00 price target (up previously from $460.00) on shares of Broadcom in a research report on Friday, December 12th. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and one has assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Buy” and an average price target of $436.33.

Institutional Trading of Broadcom

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in AVGO. Norges Bank purchased a new position in Broadcom during the 2nd quarter valued at $18,579,549,000. Vanguard Group Inc. increased its stake in Broadcom by 1.3% in the second quarter. Vanguard Group Inc. now owns 483,442,939 shares of the semiconductor manufacturer’s stock worth $133,261,046,000 after purchasing an additional 6,222,802 shares during the period. Edgewood Management LLC bought a new stake in shares of Broadcom during the second quarter worth $1,571,438,000. Arrowstreet Capital Limited Partnership boosted its stake in shares of Broadcom by 499.4% during the third quarter. Arrowstreet Capital Limited Partnership now owns 5,634,232 shares of the semiconductor manufacturer’s stock valued at $1,858,789,000 after purchasing an additional 4,694,313 shares during the period. Finally, Alliancebernstein L.P. grew its holdings in shares of Broadcom by 16.0% in the first quarter. Alliancebernstein L.P. now owns 29,513,814 shares of the semiconductor manufacturer’s stock worth $4,941,498,000 after purchasing an additional 4,077,910 shares during the last quarter. 76.43% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Q4 AI momentum: Broadcom reported AI-related revenue strength (Zacks highlights Q4 AI revenue up sharply, with AI chip/XPU demand lifting results and driving a swelling backlog and upbeat 2026 outlook). Zacks: Broadcom’s Semiconductor Growth Picks Up
• Positive Sentiment: Bullish analyst commentary: Multiple firms have raised targets and reiterated buy/outperform stances (Cantor Fitzgerald and others flag AVGO as “ripe for outperformance” for 2026), supporting upward pressure on the stock. MSN: Cantor Fitzgerald on Broadcom
• Positive Sentiment: Dividend increase: Broadcom raised its quarterly dividend, signaling strong cash flow and attracting income-focused buyers (supports confidence despite near-term margin noise). MarketBeat: Broadcom Raises Dividend
• Positive Sentiment: Insider buy: Director Harry You purchased 1,000 shares (~$325k), a small but visible vote of confidence amid volatility. SEC Filing – Harry L. You Purchase
• Positive Sentiment: Media and retail momentum: Feature pieces and buy-list inclusions (e.g., Motley Fool-type coverage) are boosting retail interest in AVGO as an AI play. Fool: Broadcom a Top AI Stock
• Neutral Sentiment: Short interest and options: Reported short-interest growth (mid-December data showed an increase) and unusual options activity amplify intraday moves but days-to-cover remains modest (~1.9 days), so these are watch-list items rather than definitive catalysts.
• Neutral Sentiment: Backlog vs. conversion risk: The $73B AI backlog underpins revenue visibility, but conversion timing and mix (chip vs. system sales) determine ultimate margin and cash-flow impact — a structural positive if executed well, neutral until conversion details are clear. Seeking Alpha: Broadcom and AI Infrastructure
• Negative Sentiment: Margin concerns from system sales: Management warned gross margins will decline as AI system sales (which include pass-through component costs) grow — this spooked the market after the Dec. 11 earnings release and is the main reason for recent price weakness.
• Negative Sentiment: Insider selling: CEO Hock Tan and several senior insiders have sold material positions (reports show CEO sales exceeding $40M and aggregate insider selling topping $100M), which can undermine investor confidence even as company fundamentals remain strong. Yahoo Finance: Insider Selling Tops $100M
• Negative Sentiment: Near-term price volatility: The stock pulled back sharply (~mid-December sell-off) after earnings; with valuation questions flagged by some outlets, a missed execution on backlog conversion or margin protection could cap near-term upside. MarketBeat: Coverage of Post-Earnings Pullback

Broadcom Company Profile

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.