Broadcom (NASDAQ:AVGO) Stock Falls 1.2% – Time to Sell?

Broadcom Inc. (NASDAQ:AVGO)’s stock price fell 1.2% on Monday. The stock traded as low as $321.87 and last traded at $322.23. Approximately 19,732,664 shares changed hands during mid-day trading, a decline of 21% from the average session volume of 24,841,568 shares. The stock had previously closed at $326.08.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s AI semiconductor revenue reached $16.7 billion, exceeding its $16 billion target, and management expects higher AI revenue next quarter. That supports the view that demand for its custom AI chips remains strong despite competition from Marvell. Article: Is Broadcom Stock a Buy Now?
• Positive Sentiment: ETFs purchased $267.7 million of Broadcom shares on Nov. 2, a sign of institutional demand, though fund flows can be short-lived and do not guarantee further gains. Article: 53 ETFs Add to Broadcom Holdings
• Neutral Sentiment: A report tied midterm-election results and a potential Texas permit freeze to concerns about AI data-center investment. The article does not establish a direct effect on Broadcom, but any broader slowdown in data-center construction could weigh on AI infrastructure suppliers. Article: Steve Weiss Says the Midterms Just Put a Lid on AI Spending
• Negative Sentiment: Broadcom underperformed in a rising market. Coverage describing the session offered no specific explanation, leaving the decline potentially tied to market sentiment or profit-taking rather than a disclosed change in the company’s outlook. Article: Broadcom Stock Slides as Market Rises
• Negative Sentiment: Some commentary flags valuation as a risk, while Broadcom’s custom-chip opportunity depends on customers continuing to develop their own processors. That leaves the stock vulnerable if growth expectations cool or customer plans change. Article: Taiwan Semi or Broadcom

Wall Street Analyst Weigh In

AVGO has been the topic of several research analyst reports. JPMorgan Chase & Co. reissued a “buy” rating on shares of Broadcom in a research note on Thursday, September 3rd. KeyCorp reaffirmed an “overweight” rating and issued a $575.00 price target on shares of Broadcom in a research note on Thursday, September 3rd. Wall Street Zen lowered shares of Broadcom from a “strong-buy” rating to a “buy” rating in a report on Saturday, July 18th. Royal Bank Of Canada initiated coverage on shares of Broadcom in a research report on Thursday, September 3rd. They set an “outperform” rating on the stock. Finally, Sanford C. Bernstein reissued a “buy” rating on shares of Broadcom in a research report on Monday, September 21st. One investment analyst has rated the stock with a Strong Buy rating, thirty-nine have given a Buy rating and five have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Broadcom has a consensus rating of “Moderate Buy” and a consensus price target of $530.52.

Broadcom Trading Down 2.0%

The company has a quick ratio of 2.29, a current ratio of 2.50 and a debt-to-equity ratio of 0.57. The firm’s 50-day moving average price is $350.73 and its 200 day moving average price is $366.67. The company has a market capitalization of $1.55 trillion, a P/E ratio of 38.76 and a beta of 1.49.

Broadcom (NASDAQ:AVGO) last posted its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share for the quarter, topping analysts’ consensus estimates of $3.22 by $0.10. The company had revenue of $29.59 billion for the quarter, compared to analyst estimates of $29.24 billion. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. The firm’s revenue was up 85.5% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.69 EPS. As a group, equities research analysts predict that Broadcom Inc. will post 10.37 earnings per share for the current year.

Broadcom Announces Dividend

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

Institutional Investors Weigh In On Broadcom

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Yukon Wealth Management Inc. lifted 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 acquiring an additional 26 shares during the period. NerdWallet Wealth Partners LLC boosted its position in Broadcom by 2.6% in the second quarter. NerdWallet Wealth Partners LLC now owns 1,057 shares of the semiconductor manufacturer’s stock worth $399,000 after purchasing an additional 27 shares during the last quarter. Veery Capital LLC grew its stake in Broadcom by 1.4% in the 2nd quarter. Veery Capital LLC now owns 1,900 shares of the semiconductor manufacturer’s stock valued at $718,000 after purchasing an additional 27 shares during the period. Ridgeline Wealth Planning LLC grew its stake in Broadcom by 2.1% in the 2nd quarter. Ridgeline Wealth Planning LLC now owns 1,302 shares of the semiconductor manufacturer’s stock valued at $492,000 after purchasing an additional 27 shares during the period. Finally, Capital Planning LLC increased its position in shares of Broadcom by 0.7% during the 1st quarter. Capital Planning LLC now owns 4,044 shares of the semiconductor manufacturer’s stock valued at $1,252,000 after purchasing an additional 28 shares during the last quarter. 76.43% of the stock is owned by hedge funds and other institutional investors.

About Broadcom

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops and supplies semiconductor and infrastructure software products. Its semiconductor solutions support data center, networking, broadband, wireless communications, storage, industrial and other electronic applications.

The company’s semiconductor portfolio includes networking and switching components, custom accelerators, connectivity and wireless devices, broadband equipment, optical products, storage controllers and related infrastructure technologies.