Broadcom (NASDAQ:AVGO) Shares Down 5.4% – Should You Sell?

Shares of Broadcom Inc. (NASDAQ:AVGO) were down 5.4% on Tuesday . The company traded as low as $331.80 and last traded at $332.60. Approximately 31,884,099 shares traded hands during mid-day trading, an increase of 25% from the average daily volume of 25,456,998 shares. The stock had previously closed at $351.71.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Citi lists Broadcom as a top pick into earnings and has been bullish on accelerating AI sales, citing a $480 price target — supports upside from AI customer deals and networking chips. Citi bullish on Broadcom
• Positive Sentiment: Wells Fargo recently turned more bullish on AVGO, reflecting growing confidence in AI-driven revenue and VMware contributions that should sustain earnings momentum. Why Wells Fargo turned bullish
• Positive Sentiment: Analysts broadly remain constructive (many Buy/Outperform ratings and multiple high price targets; median target noted near $450) and recent coverage highlights strong backlog and AI pipeline as revenue drivers. QuiverQuant analyst roundup
• Neutral Sentiment: Market commentary compares Broadcom as an alternative to other AI leaders (e.g., Nvidia), noting AVGO’s strong 12‑month performance (~50%) and debate over relative momentum versus peers. Useful for allocation decisions but not a catalyst by itself. What’s happening with AVGO
• Negative Sentiment: RBC initiated coverage at Sector Perform, flagging valuation and margin risk despite AI upside — a reminder that high multiples and execution on AI product margins are vulnerabilities. RBC initiates Broadcom at sector perform
• Negative Sentiment: Social and data feeds highlight concerns: heavy insider selling (many exec sales), geopolitical/cybersecurity risks and margin pressure for AI infrastructure — these factors likely contribute to today’s weakness. QuiverQuant on insider trades and risks

Analyst Upgrades and Downgrades

AVGO has been the topic of a number of research reports. Oppenheimer increased their price objective on shares of Broadcom from $435.00 to $450.00 and gave the company an “outperform” rating in a research note on Friday, December 12th. Piper Sandler reaffirmed an “overweight” rating and issued a $430.00 price target (up previously from $375.00) on shares of Broadcom in a report on Friday, December 12th. Citigroup reiterated a “buy” rating on shares of Broadcom in a research report on Thursday, January 15th. UBS Group set a $475.00 price objective on shares of Broadcom and gave the stock a “buy” rating in a research note on Monday, December 15th. Finally, The Goldman Sachs Group reaffirmed a “buy” rating and issued a $450.00 target price on shares of Broadcom in a research note on Monday, January 5th. Three analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating and one has assigned a Hold rating to the stock. According to MarketBeat.com, Broadcom has a consensus rating of “Buy” and an average price target of $438.61.

Broadcom Trading Down 5.4%

The business’s 50-day moving average price is $358.85 and its two-hundred day moving average price is $334.69. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.71 and a quick ratio of 1.58. The firm has a market cap of $1.58 trillion, a price-to-earnings ratio of 69.87, a price-to-earnings-growth ratio of 1.17 and a beta of 1.21.

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

Broadcom Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, December 31st. Stockholders of record on Monday, December 22nd were given a $0.65 dividend. This is an increase from Broadcom’s previous quarterly dividend of $0.59. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend was Monday, December 22nd. Broadcom’s dividend payout ratio (DPR) is presently 54.62%.

Insiders Place Their Bets

In related news, CFO Kirsten M. Spears sold 30,000 shares of the stock in a transaction dated Wednesday, December 31st. The stock was sold at an average price of $347.82, for a total transaction of $10,434,600.00. Following the transaction, the chief financial officer directly owned 277,237 shares in the company, valued at approximately $96,428,573.34. This represents a 9.76% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, insider Mark David Brazeal sold 38,281 shares of the company’s stock in a transaction dated Wednesday, December 17th. The shares were sold at an average price of $327.65, for a total transaction of $12,542,769.65. Following the transaction, the insider directly owned 266,494 shares of the company’s stock, valued at approximately $87,316,759.10. This represents a 12.56% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 779,901 shares of company stock valued at $284,069,237. 2.00% of the stock is owned by company insiders.

Hedge Funds Weigh In On Broadcom

A number of large investors have recently bought and sold shares of AVGO. Longfellow Investment Management Co. LLC purchased a new position in shares of Broadcom in the 2nd quarter worth $27,000. Legend Financial Advisors Inc. acquired a new stake in Broadcom during the 2nd quarter worth approximately $28,000. Teachers Insurance & Annuity Association of America purchased a new position in Broadcom in the second quarter valued at approximately $28,000. LGT Financial Advisors LLC purchased a new position in shares of Broadcom in the 2nd quarter valued at $31,000. Finally, New England Capital Financial Advisors LLC acquired a new position in shares of Broadcom during the 2nd quarter valued at $31,000. Hedge funds and other institutional investors 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.