Broadcom (NASDAQ:AVGO) Stock Falls 2.1% – What’s Next?

Broadcom Inc. (NASDAQ:AVGO) was down 2.1% on Thursday. The company traded as low as $343.29 and last traded at $343.64. 22,211,726 shares were traded during mid-day trading, a decline of 12% from the average session volume of 25,103,633 shares. The stock had previously closed at $351.19.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom has agreed to provide Anthropic with up to $42 billion in financing to lease Broadcom chips and fund the AI company’s infrastructure expansion. The facility could cover roughly one-third of Anthropic’s $125.2 billion, five-year commitment for TPU computing capacity, creating a potentially significant source of future chip demand. Broadcom to lend Anthropic up to $42 billion to lease its chips
• Positive Sentiment: Anthropic could become Broadcom’s largest customer next year, while the arrangement also includes chip supply and equipment leasing. Investors may view the deal as evidence that Broadcom is becoming deeply embedded in the rapidly expanding AI infrastructure market. Broadcom Stock Rises. Anthropic and Broadcom Are Becoming More Intertwined.
• Neutral Sentiment: The financing may be convertible into Anthropic shares, giving Broadcom potential equity upside but also making the deal’s value dependent on Anthropic’s future growth and any IPO outcome. Broadcom to provide Anthropic with up to $42 billion in financing
• Negative Sentiment: Investors are concerned about credit exposure and customer concentration. Reports cite Anthropic’s $161.2 billion in Broadcom lease obligations and $518 billion in total infrastructure commitments, raising questions about whether Anthropic can support its spending plans. If Anthropic’s growth or financing deteriorates, Broadcom could face repayment, utilization, or concentration risks. Broadcom’s AI Growth Story Faces a $161 Billion Anthropic Test

Wall Street Analysts Forecast Growth

A number of research analysts have recently weighed in on the stock. Cantor Fitzgerald raised their price target on shares of Broadcom from $525.00 to $600.00 and gave the company an “overweight” rating in a report on Thursday, September 3rd. Royal Bank Of Canada began coverage on shares of Broadcom in a research note on Thursday, September 3rd. They set an “outperform” rating for the company. Sanford C. Bernstein reissued a “buy” rating on shares of Broadcom in a report on Monday, September 21st. HSBC decreased their price objective on Broadcom from $600.00 to $560.00 and set a “buy” rating on the stock in a report on Thursday, September 3rd. Finally, Bank of America cut their price target on shares of Broadcom from $530.00 to $460.00 and set a “buy” rating for the company in a report on Thursday, September 3rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-seven have assigned a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $527.20.

Broadcom Stock Down 2.1%

The firm’s 50-day simple moving average is $374.25 and its 200 day simple moving average is $380.70. The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.29 and a current ratio of 2.50. The company has a market cap of $1.64 trillion, a P/E ratio of 43.89 and a beta of 1.44.

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

Broadcom Dividend Announcement

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

Insider Buying and Selling

In related news, Director Gayla J. Delly sold 1,890 shares of the stock in a transaction dated Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total transaction of $728,368.20. Following the completion of the transaction, the director directly owned 31,326 shares in the company, valued at approximately $12,072,413.88. This trade represents a 5.69% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Mark Brazeal sold 25,000 shares of the business’s 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 completion of the sale, the insider directly owned 194,989 shares in the company, valued at approximately $78,254,935.37. This represents a 11.36% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 51,890 shares of company stock valued at $20,241,368. 1.90% of the stock is owned by company insiders.

Institutional Investors Weigh In On Broadcom

Institutional investors and hedge funds have recently made changes to their positions in the stock. Cornerstone Advisors LLC bought a new stake in Broadcom during the second quarter valued at $92,522,000. Bank of America Corp DE increased its holdings in shares of Broadcom by 1.5% during the first quarter. Bank of America Corp DE now owns 58,737,097 shares of the semiconductor manufacturer’s stock valued at $18,179,719,000 after acquiring an additional 894,564 shares in the last quarter. Clear Harbor Asset Management LLC acquired a new position in Broadcom during the second quarter worth $3,302,000. Bartlett & CO. Wealth Management LLC lifted its position in Broadcom by 129.3% in the 1st quarter. Bartlett & CO. Wealth Management LLC now owns 110,048 shares of the semiconductor manufacturer’s stock valued at $34,061,000 after acquiring an additional 62,050 shares in the last quarter. Finally, First Bank & Trust lifted its holdings in shares of Broadcom by 17.2% in the second quarter. First Bank & Trust now owns 10,503 shares of the semiconductor manufacturer’s stock valued at $3,968,000 after purchasing an additional 1,545 shares in 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 products. Its semiconductor solutions support wired and wireless communications, data center networking, broadband access, storage, industrial applications, and other markets.

The company’s semiconductor portfolio includes networking and switching products, custom application-specific integrated circuits, wireless connectivity components, radio-frequency devices, optical components, and storage-related solutions.