Broadcom (NASDAQ:AVGO) Stock Price Down 3.3% – Here’s Why

Broadcom Inc. (NASDAQ:AVGO)’s stock price was down 3.3% during mid-day trading on Friday . The stock traded as low as $419.80 and last traded at $425.19. Approximately 18,504,800 shares changed hands during trading, a decline of 25% from the average daily volume of 24,719,965 shares. The stock had previously closed at $439.79.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom remains a favored way to play AI infrastructure, with multiple recent articles highlighting its growing exposure to custom AI silicon, data-center networking, and AI semiconductor revenue. Citi also raised its price target to $500, reinforcing optimism ahead of the next earnings report.
• Positive Sentiment: Wells Fargo lifted its price target to $545 and said AI semiconductor revenue is running 30% to 40% above expectations, suggesting Broadcom may still be benefiting from stronger-than-expected hyperscaler spending.
• Positive Sentiment: Recent investor interest has also been supportive, with hedge fund and prominent manager buying cited in several notes, alongside Broadcom being named among top tech stocks to own as AI optimism continues to drive the market.
• Neutral Sentiment: Broadcom was also mentioned in a broader AI rotation piece that argues the next leg of the rally may be in AI bottlenecks such as optics, networking, and memory rather than only the most obvious chip winners. Broadcom was specifically named as one of the companies positioned to benefit from optical interconnect demand.
• Negative Sentiment: UBS warned that AI stocks, including Broadcom, are increasingly crowded trades, raising the risk of a pullback if enthusiasm cools or if investors rotate out of mega-cap semiconductors.
• Negative Sentiment: Some commentary also suggests the AI chip rally may be masking broader market weakness, which can make even strong names like Broadcom vulnerable to profit-taking after a powerful advance.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on AVGO shares. JPMorgan Chase & Co. lifted their price target on Broadcom from $475.00 to $500.00 and gave the stock an “overweight” rating in a research note on Thursday, March 5th. Citigroup reaffirmed a “buy” rating and set a $500.00 price target (up from $475.00) on shares of Broadcom in a research note on Tuesday. Seaport Research Partners reaffirmed a “neutral” rating on shares of Broadcom in a research note on Wednesday, April 8th. Weiss Ratings downgraded Broadcom from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Friday, April 24th. Finally, Erste Group Bank downgraded Broadcom from a “buy” rating to a “hold” rating in a research note on Thursday, April 2nd. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $441.63.

Broadcom Stock Down 3.3%

The firm’s 50 day moving average is $365.61 and its two-hundred day moving average is $354.62. The stock has a market cap of $2.01 trillion, a price-to-earnings ratio of 83.05, a P/E/G ratio of 0.88 and a beta of 1.43. The company has a current ratio of 1.90, a quick ratio of 1.73 and a debt-to-equity ratio of 0.80.

Broadcom (NASDAQ:AVGO) last announced its earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share for the quarter, beating the consensus estimate of $2.03 by $0.02. Broadcom had a net margin of 36.57% and a return on equity of 38.61%. The firm had revenue of $19.31 billion during the quarter, compared to the consensus estimate of $19.10 billion. During the same quarter in the previous year, the company posted $1.60 EPS. The firm’s revenue for the quarter was up 29.5% on a year-over-year basis. On average, sell-side analysts predict that Broadcom Inc. will post 9.95 EPS for the current year.

Broadcom Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Investors of record on Monday, March 23rd were paid a $0.65 dividend. The ex-dividend date of this dividend was Monday, March 23rd. This represents a $2.60 annualized dividend and a yield of 0.6%. Broadcom’s payout ratio is presently 50.78%.

Insider Activity

In other news, insider S. Ram Velaga sold 38,841 shares of the company’s stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total transaction of $12,491,265.60. Following the completion of the transaction, the insider owned 96,147 shares of the company’s stock, valued at $30,920,875.20. This represents a 28.77% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, insider Mark David Brazeal sold 50,488 shares of the company’s stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total transaction of $16,236,940.80. Following the transaction, the insider directly owned 278,141 shares of the company’s stock, valued at approximately $89,450,145.60. This represents a 15.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 324,282 shares of company stock worth $106,425,249. Company insiders own 1.90% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. The Manufacturers Life Insurance Company increased its stake in shares of Broadcom by 21.2% during the 1st quarter. The Manufacturers Life Insurance Company now owns 5,310,766 shares of the semiconductor manufacturer’s stock valued at $1,643,640,000 after acquiring an additional 928,806 shares during the last quarter. Estuary Capital Management LP grew its holdings in shares of Broadcom by 1.6% during the 1st quarter. Estuary Capital Management LP now owns 106,420 shares of the semiconductor manufacturer’s stock worth $32,938,000 after purchasing an additional 1,660 shares during the period. KCM Investment Advisors LLC grew its holdings in shares of Broadcom by 4.4% during the 1st quarter. KCM Investment Advisors LLC now owns 62,058 shares of the semiconductor manufacturer’s stock worth $19,208,000 after purchasing an additional 2,598 shares during the period. Infrastructure Capital Advisors LLC grew its holdings in shares of Broadcom by 21.7% during the 1st quarter. Infrastructure Capital Advisors LLC now owns 3,323 shares of the semiconductor manufacturer’s stock worth $1,029,000 after purchasing an additional 593 shares during the period. Finally, Excelsior Advisor Network LLC grew its holdings in shares of Broadcom by 152.2% during the 1st quarter. Excelsior Advisor Network LLC now owns 2,676 shares of the semiconductor manufacturer’s stock worth $828,000 after purchasing an additional 1,615 shares during the period. Institutional investors and hedge funds own 76.43% of the company’s stock.

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.