Broadcom (NASDAQ:AVGO) Shares Down 5% – Time to Sell?

Broadcom Inc. (NASDAQ:AVGO) traded down 5% during mid-day trading on Thursday . The stock traded as low as $371.90 and last traded at $374.45. Approximately 21,940,630 shares were traded during mid-day trading, a decline of 16% from the average daily volume of 26,223,658 shares. The stock had previously closed at $394.28.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s AI growth story remains strong, with recent commentary calling it a “core AI winner” and saying its AI moat is expanding as demand for AI infrastructure stays heavy. Broadcom’s AI Moat Keeps Expanding
• Positive Sentiment: Standard Chartered chose Broadcom to help deliver secure, always-on banking services through a long-term private-cloud modernization effort, adding another enterprise customer win. Standard Chartered Selects Broadcom to Deliver Secure, Always-On Banking Services at Global Scale
• Positive Sentiment: Analysts reportedly lifted price targets on Broadcom even after the recent pullback, suggesting Wall Street still sees meaningful upside from current levels. As Shares Fall, Analyst Are Boosting Their Broadcom Price Targets
• Neutral Sentiment: Commentary continued to frame Broadcom as a major beneficiary of AI infrastructure spending, with some articles highlighting bullish long-term price forecasts for the stock. Price Prediction: Nvidia, AMD & Broadcom-Our Bold Price Predictions for 2029
• Negative Sentiment: Broadcom is being hit by a wider chip-sector selloff after renewed worries that AI capex growth may moderate, which is weighing on sentiment across semiconductor names. Marvell Drops 8% as AI Capex Slowdown Fears Weigh on Chips; Broadcom, AMD, and Intel Slide
• Negative Sentiment: Recent insider selling is also a mild headwind for sentiment, though it does not necessarily indicate a change in fundamentals. Insider Selling: Broadcom (NASDAQ:AVGO) Insider Sells $10,033,250.00 in Stock

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on AVGO shares. KeyCorp reaffirmed an “overweight” rating and set a $575.00 target price (up from $500.00) on shares of Broadcom in a research note on Thursday, June 4th. TD Cowen reissued a “buy” rating and set a $500.00 price target on shares of Broadcom in a research note on Thursday, June 4th. Mizuho boosted their price objective on Broadcom from $480.00 to $530.00 and gave the company an “outperform” rating in a report on Thursday, June 4th. Susquehanna reaffirmed a “positive” rating and issued a $490.00 price objective (up from $450.00) on shares of Broadcom in a research report on Thursday, May 28th. Finally, Jefferies Financial Group set a $550.00 target price on Broadcom and gave the stock a “buy” rating in a research note on Thursday, June 4th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $493.24.

Broadcom Stock Down 5.0%

The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 2.01. The stock has a market cap of $1.78 trillion, a PE ratio of 62.41, a price-to-earnings-growth ratio of 0.68 and a beta of 1.45. The business has a fifty day moving average of $403.23 and a 200-day moving average of $365.11.

Broadcom (NASDAQ:AVGO) last announced its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.40 by $0.04. The company had revenue of $22.19 billion for the quarter, compared to analysts’ expectations of $22.13 billion. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.Broadcom’s revenue was up 47.9% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $1.58 earnings per share. Equities research analysts anticipate that Broadcom Inc. will post 10.24 earnings per share for the current year.

Broadcom Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 22nd were paid a dividend of $0.65 per share. The ex-dividend date was Monday, June 22nd. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. Broadcom’s dividend payout ratio (DPR) is currently 43.33%.

Insider Transactions at Broadcom

In related news, Director Gayla J. Delly sold 1,890 shares of the company’s stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total value of $728,368.20. Following the completion of the sale, the director directly owned 31,326 shares of the company’s stock, valued at $12,072,413.88. This represents a 5.69% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Justine Page sold 1,602 shares of the stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $373.86, for a total transaction of $598,923.72. Following the transaction, the director owned 17,426 shares in the company, valued at approximately $6,514,884.36. The trade was a 8.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 61,644 shares of company stock valued at $24,016,214. Insiders own 1.90% of the company’s stock.

Hedge Funds Weigh In On Broadcom

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Vanguard Group Inc. raised its position in shares of Broadcom by 0.8% in the 4th quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer’s stock worth $167,064,997,000 after acquiring an additional 3,919,715 shares in the last quarter. State Street Corp boosted its position in Broadcom by 2.7% during the fourth quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer’s stock valued at $65,788,194,000 after purchasing an additional 5,040,801 shares in the last quarter. Geode Capital Management LLC boosted its position in Broadcom by 1.4% during 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 purchasing an additional 1,548,699 shares in the last quarter. Price T Rowe Associates Inc. MD grew its stake in Broadcom by 3.0% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 85,546,083 shares of the semiconductor manufacturer’s stock valued at $29,607,500,000 after purchasing an additional 2,491,644 shares during the last quarter. Finally, Norges Bank purchased a new position in Broadcom in the fourth quarter valued at about $24,252,196,000. 76.43% of the stock is currently 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.