Broadcom (NASDAQ:AVGO) Stock Price Down 1% – Here’s Why

Broadcom Inc. (NASDAQ:AVGO)’s share price dropped 1% during mid-day trading on Thursday . The stock traded as low as $324.89 and last traded at $325.49. Approximately 24,004,367 shares traded hands during mid-day trading, a decline of 7% from the average daily volume of 25,848,998 shares. The stock had previously closed at $328.80.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Large buying from high-profile investors supports demand: Cathie Wood’s ARK funds added over 143,000 AVGO shares, a vote of confidence that can buoy sentiment and flows. Cathie Wood Is Doubling Down on Broadcom Stock. Should You?
• Positive Sentiment: Analysts remain constructive — Broadcom has a consensus “Buy” rating from several street analysts, which helps support medium-term expectations. Broadcom Inc. (NASDAQ:AVGO) Receives Consensus Rating of “Buy” from Analysts
• Positive Sentiment: Industry tailwinds from TSMC and Meta AI spending bolster Broadcom’s long-term growth case as a “picks-and-shovels” supplier to AI infrastructure. Why Taiwan Semiconductor and Meta Could Be the Hidden Bull Case for Broadcom
• Neutral Sentiment: Coverage pieces highlighting Broadcom’s past shareholder returns and strategic moves (e.g., buyback and deal-driven value creation) provide context but are less likely to move the stock intraday. How Broadcom Stock Delivered $51 Billion In Shareholder Value
• Neutral Sentiment: Company commentary and market stories about connectivity expansion and forecasts suggest steady execution but don’t change near-term catalyst timing. Broadcom Inc (NASDAQ:AVGO) Nasdaq Today Signals Connectivity Expansion
• Neutral Sentiment: Macro/sector coverage (AI “picks-and-shovels” theme) is supportive but broad; timing of capex by large customers will ultimately determine revenue cadence. ORCL, MU and AVGO Forecast – Picks and Shovels of AI Look Strong
• Negative Sentiment: Operational/legal risk flagged by a lawsuit over Broadcom’s control of critical software: Fidelity settled a case alleging Broadcom threatened to cut access to software central to Fidelity’s systems — the episode highlights customer concentration and counterparty risk. Fidelity settles lawsuit over access to ‘business-critical’ Broadcom software
• Negative Sentiment: Some institutional selling and position trimming (e.g., Cypress Funds cutting its stake) increases supply pressure and can amplify short-term weakness. Cypress Funds Llc Cuts Broadcom Inc. Stake by 29K Shares
• Negative Sentiment: Technical/flow headwinds: the stock is below key moving averages and underperformed peers in recent sessions, which can pressure momentum and trigger additional selling. Broadcom Inc. stock underperforms Wednesday when compared to competitors

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on AVGO shares. Deutsche Bank Aktiengesellschaft set a $430.00 price target on shares of Broadcom and gave the company a “buy” rating in a research report on Friday, December 12th. Morgan Stanley lifted their target price on Broadcom from $443.00 to $462.00 and gave the stock an “overweight” rating in a report on Friday, December 12th. Robert W. Baird set a $420.00 price target on Broadcom in a report on Friday, December 12th. TD Cowen restated a “buy” rating on shares of Broadcom in a report on Friday, December 12th. Finally, Mizuho set a $480.00 target price on shares of Broadcom and gave the stock an “outperform” rating in a research report on Friday, January 9th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and one has given a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of “Buy” and a consensus price target of $438.61.

Broadcom Stock Down 1.6%

The company’s 50 day moving average price is $357.20 and its two-hundred day moving average price is $335.31. The company has a current ratio of 1.71, a quick ratio of 1.58 and a debt-to-equity ratio of 0.76. The firm has a market cap of $1.52 trillion, a PE ratio of 67.25, a PEG ratio of 1.08 and a beta of 1.21.

Broadcom (NASDAQ:AVGO) last announced its earnings results on Thursday, December 11th. The semiconductor manufacturer reported $1.95 EPS for the quarter, topping analysts’ consensus estimates of $1.87 by $0.08. Broadcom had a return on equity of 37.45% and a net margin of 36.20%.The company had revenue of $18.02 billion for the quarter, compared to analysts’ expectations of $17.46 billion. During the same period last year, the firm earned $1.42 EPS. Broadcom’s revenue for the quarter was up 28.2% compared to the same quarter last year. On average, equities research analysts expect that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Increases Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, December 31st. Investors of record on Monday, December 22nd were paid a dividend of $0.65 per share. This is a boost from Broadcom’s previous quarterly dividend of $0.59. The ex-dividend date was Monday, December 22nd. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.8%. Broadcom’s dividend payout ratio is presently 54.62%.

Insider Activity at Broadcom

In other Broadcom news, CEO Hock E. Tan sold 70,000 shares of Broadcom stock in a transaction that occurred on Tuesday, January 6th. The shares were sold at an average price of $347.30, for a total transaction of $24,311,000.00. Following the transaction, the chief executive officer owned 132,836 shares of the company’s stock, valued at $46,133,942.80. The trade was a 34.51% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Harry L. You purchased 1,000 shares of the company’s stock in a transaction on Thursday, December 18th. The stock was purchased at an average price of $325.13 per share, with a total value of $325,130.00. Following the completion of the transaction, the director owned 36,602 shares of the company’s stock, valued at approximately $11,900,408.26. This trade represents a 2.81% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Insiders have sold 779,901 shares of company stock worth $284,069,237 in the last 90 days. Insiders own 2.00% of the company’s stock.

Institutional Investors Weigh In On Broadcom

Institutional investors and hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. boosted its stake in Broadcom by 1.3% in the 2nd 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. State Street Corp lifted its holdings in shares of Broadcom by 0.5% in the second quarter. State Street Corp now owns 185,276,987 shares of the semiconductor manufacturer’s stock worth $51,071,601,000 after buying an additional 873,963 shares in the last quarter. Geode Capital Management LLC lifted its holdings in shares of Broadcom by 2.1% in the second quarter. Geode Capital Management LLC now owns 108,610,718 shares of the semiconductor manufacturer’s stock worth $29,827,649,000 after buying an additional 2,226,585 shares in the last quarter. Norges Bank bought a new position in shares of Broadcom during the second quarter worth $18,579,549,000. Finally, Invesco Ltd. grew its stake in Broadcom by 1.8% during the third quarter. Invesco Ltd. now owns 39,149,651 shares of the semiconductor manufacturer’s stock valued at $12,915,861,000 after acquiring an additional 700,021 shares in the last quarter. 76.43% of the stock is owned by institutional investors.

About Broadcom

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.