Broadcom (NASDAQ:AVGO) Trading Down 4.8% – Time to Sell?

Broadcom Inc. (NASDAQ:AVGO)’s share price traded down 4.8% during trading on Monday . The company traded as low as $343.91 and last traded at $344.72. 31,572,775 shares traded hands during mid-day trading, an increase of 25% from the average daily volume of 25,225,260 shares. The stock had previously closed at $361.99.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Long-term AI demand remains a major catalyst. Broadcom CEO Hock Tan reportedly said demand for the company’s custom AI processors already exceeds its $115 billion forecast, with AI revenue expected to double in fiscal 2027 and again in 2028. Hyperscalers and frontier AI companies are increasingly using Broadcom-designed processors. Broadcom CEO Hock Tan Says Demand Already Exceeds Broadcom’s $115 Billion AI Forecast
• Positive Sentiment: Custom-chip partnerships could expand growth. Accelerating Ironwood shipments to Anthropic highlights Broadcom’s role in the expanding custom AI hardware market and may strengthen the economics of Google’s TPU ecosystem for Broadcom. Broadcom’s Anthropic Ramp Puts Google’s TPU Business in a Different Light
• Positive Sentiment: Some analysts see substantial upside. Mizuho analyst Vijay Rakesh expects AVGO to rally toward a new all-time high over the next 12 months, while other commentary points to strong AI-driven revenue growth. Wall Street sets Broadcom stock price for the next 12 months

Wall Street Analysts Forecast Growth

AVGO has been the subject of a number of research analyst reports. Royal Bank Of Canada began coverage on shares of Broadcom in a report on Thursday, September 3rd. They issued an “outperform” rating for the company. JPMorgan Chase & Co. upped their target price on shares of Broadcom from $500.00 to $580.00 and gave the stock an “overweight” rating in a research report on Thursday, June 4th. Rosenblatt Securities started coverage on shares of Broadcom in a report on Thursday, September 3rd. They issued a “buy” rating and a $600.00 target price for the company. Jefferies Financial Group began coverage on Broadcom in a research note on Thursday, September 3rd. They set a “buy” rating on the stock. Finally, Piper Sandler assumed coverage on Broadcom in a report on Wednesday. They issued an “overweight” rating and a $460.00 price target on the stock. One investment analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $505.97.

Broadcom Stock Performance

The company has a current ratio of 2.50, a quick ratio of 2.29 and a debt-to-equity ratio of 0.57. The stock’s 50 day moving average is $383.03 and its 200 day moving average is $378.66. The stock has a market capitalization of $1.65 trillion, a price-to-earnings ratio of 44.03 and a beta of 1.44.

Broadcom (NASDAQ:AVGO) last announced its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.22 by $0.10. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. The company had revenue of $29.59 billion during the quarter, compared to analysts’ expectations of $29.24 billion. During the same quarter in the previous year, the business posted $1.69 earnings per share. The firm’s quarterly revenue was up 85.5% compared to the same quarter last year. On average, analysts predict that Broadcom Inc. will post 10.36 earnings per share for the current year.

Broadcom Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Monday, September 21st will be given a dividend of $0.65 per share. This represents a $2.60 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Monday, September 21st. Broadcom’s payout ratio is currently 33.21%.

Insider Activity at Broadcom

In other Broadcom news, insider Mark Brazeal sold 25,000 shares of the stock in a transaction on Friday, July 10th. The stock was sold at an average price of $401.33, for a total transaction of $10,033,250.00. Following the sale, the insider owned 194,989 shares in the company, valued at approximately $78,254,935.37. This represents a 11.36% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Gayla Delly sold 1,890 shares of the firm’s stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total value of $728,368.20. Following the transaction, the director directly owned 31,326 shares of the company’s stock, valued at $12,072,413.88. The trade was a 5.69% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 61,644 shares of company stock valued at $24,016,214. 1.90% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in AVGO. Geode Capital Management LLC raised its position in shares of Broadcom by 1.4% in the fourth quarter. Geode Capital Management LLC now owns 111,277,280 shares of the semiconductor manufacturer’s stock valued at $38,396,634,000 after buying an additional 1,548,699 shares during the last quarter. Norges Bank acquired a new stake in Broadcom during the fourth quarter worth approximately $24,252,196,000. Bank of America Corp DE grew its stake in Broadcom by 4.6% in the 2nd quarter. Bank of America Corp DE now owns 61,423,013 shares of the semiconductor manufacturer’s stock worth $23,202,543,000 after acquiring an additional 2,685,916 shares during the period. Wellington Management Group LLP raised its holdings in Broadcom by 3.8% in the 2nd quarter. Wellington Management Group LLP now owns 51,580,703 shares of the semiconductor manufacturer’s stock valued at $19,484,611,000 after acquiring an additional 1,892,721 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in Broadcom by 2.9% in the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 40,180,530 shares of the semiconductor manufacturer’s stock valued at $15,178,195,000 after acquiring an additional 1,140,598 shares during the last quarter. 76.43% of the stock is currently owned by hedge funds and other institutional investors.

About Broadcom

Broadcom Inc (NASDAQ:AVGO) designs, develops and supplies semiconductor and infrastructure software products for businesses, telecommunications providers and other organizations worldwide. Its semiconductor portfolio includes networking and connectivity components, custom application-specific integrated circuits, broadband and wireless communications products, storage adapters, optical components, and industrial solutions.

The company also provides enterprise infrastructure software through businesses including VMware, which offers virtualization and private- and hybrid-cloud solutions; mainframe and enterprise software; and cybersecurity products.