Broadcom (NASDAQ:AVGO) Trading Down 1.1% – Should You Sell?

Broadcom Inc. (NASDAQ:AVGO)’s stock price dropped 1.1% during trading on Tuesday . The company traded as low as $370.33 and last traded at $392.16. Approximately 36,293,466 shares traded hands during mid-day trading, an increase of 41% from the average daily volume of 25,767,381 shares. The stock had previously closed at $396.60.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom announced a major AI infrastructure partnership with Apollo Global Management and Blackstone, launching a platform to finance AI buildouts and support Anthropic’s $35 billion capacity expansion using Broadcom chips and networking gear. Reuters article
• Positive Sentiment: Several analysts and commentators said the selloff looks overdone, pointing to Broadcom’s strong AI revenue growth, solid margins, and higher long-term cash-flow potential; Erste Group reportedly upgraded the stock to Buy. Insider Monkey article
• Positive Sentiment: Broadcom also expanded its Spring and Java security investments, reinforcing its enterprise software position and AI-related security offerings. GlobeNewswire article
• Neutral Sentiment: Coverage continues to highlight Broadcom as a widely watched AI/semiconductor name, with investor attention elevated after the recent earnings-driven volatility and strong but not enough-to-satisfy results. Zacks article
• Neutral Sentiment: Short-interest data showed no meaningful change in the reported figure, so it does not appear to be a real new catalyst for the stock.
• Negative Sentiment: Semiconductor stocks are under pressure as traders continue to unwind the recent AI-chip rally, and Broadcom remains caught in that broader sector correction. CNBC article

Wall Street Analysts Forecast Growth

AVGO has been the topic of a number of recent analyst reports. Susquehanna restated a “positive” rating and issued a $490.00 price target (up from $450.00) on shares of Broadcom in a research report on Thursday, May 28th. TD Cowen restated a “buy” rating and issued a $500.00 price target on shares of Broadcom in a research report on Thursday, June 4th. Oppenheimer restated an “outperform” rating and issued a $535.00 price target (up from $450.00) on shares of Broadcom in a research report on Thursday, June 4th. Evercore restated an “outperform” rating and issued a $582.00 price target on shares of Broadcom in a research report on Tuesday, May 19th. Finally, Benchmark boosted their target price on shares of Broadcom from $485.00 to $545.00 and gave the stock a “buy” rating in a research note on Thursday, June 4th. One investment analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $490.13.

Broadcom Price Performance

The company has a debt-to-equity ratio of 0.71, a quick ratio of 2.01 and a current ratio of 2.24. The firm has a market capitalization of $1.86 trillion, a P/E ratio of 65.36, a price-to-earnings-growth ratio of 0.70 and a beta of 1.41. The company has a 50-day moving average price of $397.96 and a 200-day moving average price of $362.43.

Broadcom (NASDAQ:AVGO) last issued its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, beating the consensus estimate of $2.40 by $0.04. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The firm had revenue of $22.19 billion during the quarter, compared to the consensus estimate of $22.13 billion. During the same quarter in the prior year, the firm earned $1.58 earnings per share. The business’s quarterly revenue was up 47.9% on a year-over-year basis. On average, sell-side analysts predict that Broadcom Inc. will post 9.97 earnings per share for the current year.

Broadcom Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd will be paid a $0.65 dividend. This represents a $2.60 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend is Monday, June 22nd. Broadcom’s dividend payout ratio is presently 43.33%.

Insider Transactions at Broadcom

In other Broadcom news, insider S. Ram Velaga sold 8,000 shares of the company’s stock in a transaction that occurred on Friday, April 10th. The shares were sold at an average price of $370.52, for a total value of $2,964,160.00. Following the completion of the sale, the insider owned 57,932 shares of the company’s stock, valued at approximately $21,464,964.64. This represents a 12.13% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Gayla J. Delly sold 1,000 shares of the company’s stock in a transaction that occurred on Thursday, April 9th. The shares were sold at an average price of $358.31, for a total transaction of $358,310.00. Following the completion of the sale, the director directly owned 32,352 shares of the company’s stock, valued at $11,592,045.12. The trade was a 3.00% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 324,282 shares of company stock valued at $106,425,249. Corporate insiders own 1.90% of the company’s stock.

Institutional Investors Weigh In On Broadcom

Several large investors have recently made changes to their positions in the stock. Fullerton Advisors LLC increased its position in shares of Broadcom by 1.3% during the first quarter. Fullerton Advisors LLC now owns 1,989 shares of the semiconductor manufacturer’s stock worth $616,000 after acquiring an additional 25 shares in the last quarter. NORTHSTAR ASSET MANAGEMENT Co boosted its holdings in Broadcom by 0.5% during the first quarter. NORTHSTAR ASSET MANAGEMENT Co now owns 5,350 shares of the semiconductor manufacturer’s stock worth $1,656,000 after purchasing an additional 25 shares during the last quarter. RFG Holdings Inc. boosted its holdings in Broadcom by 0.3% during the first quarter. RFG Holdings Inc. now owns 8,499 shares of the semiconductor manufacturer’s stock worth $2,631,000 after purchasing an additional 26 shares during the last quarter. Yukon Wealth Management Inc. boosted its holdings in Broadcom by 1.1% during the first quarter. Yukon Wealth Management Inc. now owns 2,501 shares of the semiconductor manufacturer’s stock worth $774,000 after purchasing an additional 26 shares during the last quarter. Finally, Capital Planning LLC boosted its holdings in Broadcom by 0.7% during the first quarter. Capital Planning LLC now owns 4,044 shares of the semiconductor manufacturer’s stock worth $1,252,000 after purchasing an additional 28 shares during the last quarter. 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.