Broadcom (NASDAQ:AVGO) Stock Price Down 1.6% – Here’s What Happened

Shares of Broadcom Inc. (NASDAQ:AVGO) fell 1.6% during mid-day trading on Tuesday . The company traded as low as $337.90 and last traded at $339.27. Approximately 23,198,483 shares changed hands during mid-day trading, a decline of 8% from the average daily volume of 25,238,791 shares. The stock had previously closed at $344.72.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom CEO Hock Tan rejected concerns about an AI slowdown and reaffirmed the company’s long-term revenue outlook, supporting the view that demand from hyperscale customers remains strong. Broadcom CEO dismisses AI slowdown concerns
• Positive Sentiment: Piper Sandler said demand for Broadcom’s custom AI chips may be roughly twice available supply and estimated the company holds about 75% of the AI-inference ASIC market. The firm initiated coverage with an Overweight rating and a $460 price target. Broadcom’s real constraint is supply
• Positive Sentiment: Bullish commentary highlights AI revenue growth of 221% year over year, improving cash generation and potential for Broadcom to join the next trillion-dollar group. Its dividend also gives investors an income component alongside AI exposure. Broadcom could join the next trillion-dollar club
• Neutral Sentiment: Comparisons with Credo and Vertiv frame Broadcom as a larger, more diversified AI-infrastructure provider, but with slower expected growth and a higher valuation. Investors are weighing its scale and customer relationships against concentration and execution risks. Credo versus Broadcom
• Negative Sentiment: Analysts have raised concerns that sustaining rapid AI expansion could pressure margins and require additional financing. Customer concentration and the risk of weaker-than-expected infrastructure spending also make the shares vulnerable after their earlier rally. Broadcom’s AI growth faces margin and financing risks
• Negative Sentiment: Broadcom has been pressured by a wider semiconductor selloff and renewed debate over the pace of AI spending, compounded by uncertainty ahead of Federal Reserve policy decisions. The shares remain below their recent high and below their 50-day and 200-day moving averages. Semiconductor stocks fall amid AI spending concerns

Analysts Set New Price Targets

Several analysts have commented on AVGO shares. Morgan Stanley reiterated an “overweight” rating and set a $505.00 target price (up from $502.00) on shares of Broadcom in a research report on Thursday, September 3rd. Truist Financial reduced their price target on Broadcom from $550.00 to $520.00 and set a “buy” rating on the stock in a research report on Thursday, September 3rd. Bank of America upped their price objective on Broadcom from $450.00 to $530.00 and gave the company a “buy” rating in a report on Thursday, June 4th. Deutsche Bank Aktiengesellschaft reissued a “buy” rating and issued a $515.00 target price (up from $430.00) on shares of Broadcom in a research note on Thursday, June 4th. Finally, The Goldman Sachs Group restated a “buy” rating on shares of Broadcom in a report on Monday, August 3rd. One equities research analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, Broadcom has a consensus rating of “Moderate Buy” and an average target price of $509.04.

Broadcom Trading Down 1.6%

The business’s 50-day moving average price is $382.45 and its two-hundred day moving average price is $378.79. The company has a market capitalization of $1.62 trillion, a P/E ratio of 43.33 and a beta of 1.44. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.50 and a quick ratio of 2.29.

Broadcom (NASDAQ:AVGO) last released its quarterly earnings data on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, beating analysts’ consensus estimates of $3.22 by $0.10. The business had revenue of $29.59 billion during the quarter, compared to analysts’ expectations of $29.24 billion. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. The firm’s quarterly revenue was up 85.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.69 EPS. As a group, analysts forecast that Broadcom Inc. will post 10.36 EPS for the current fiscal year.

Broadcom Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Monday, September 21st will be issued a $0.65 dividend. This represents a $2.60 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Monday, September 21st. Broadcom’s dividend payout ratio is 33.21%.

Insider Transactions at Broadcom

In other news, Director Gayla Delly sold 1,890 shares of Broadcom 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 transaction, the director owned 31,326 shares in the company, valued at $12,072,413.88. The trade was a 5.69% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Justine Page sold 1,602 shares of the business’s stock in a transaction that occurred on Monday, June 29th. The shares were sold at an average price of $373.86, for a total value of $598,923.72. Following the completion of the transaction, the director owned 17,426 shares of the company’s stock, valued at $6,514,884.36. This represents a 8.42% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 58,317 shares of company stock valued at $22,745,733 over the last 90 days. 1.90% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Geode Capital Management LLC lifted its position in shares of Broadcom by 1.4% in the fourth quarter. Geode Capital Management LLC now owns 111,277,280 shares of the semiconductor manufacturer’s stock worth $38,396,634,000 after purchasing an additional 1,548,699 shares in the last quarter. Norges Bank bought a new stake in Broadcom during the 4th quarter worth about $24,252,196,000. Bank of America Corp DE lifted its position in Broadcom by 4.6% during the 2nd quarter. Bank of America Corp DE now owns 61,423,013 shares of the semiconductor manufacturer’s stock worth $23,202,543,000 after buying an additional 2,685,916 shares in the last quarter. Wellington Management Group LLP boosted its stake in shares of Broadcom by 3.8% during the 2nd quarter. Wellington Management Group LLP now owns 51,580,703 shares of the semiconductor manufacturer’s stock worth $19,484,611,000 after buying an additional 1,892,721 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in shares of Broadcom by 2.9% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 40,180,530 shares of the semiconductor manufacturer’s stock worth $15,178,195,000 after buying an additional 1,140,598 shares during the last quarter. Institutional investors and hedge funds own 76.43% of the company’s stock.

About Broadcom

Broadcom Inc (NASDAQ:AVGO) designs, develops and supplies semiconductor and infrastructure software products for businesses, telecommunications providers and other organizations worldwide. Its semiconductor portfolio includes networking and connectivity components, custom application-specific integrated circuits, broadband and wireless communications products, storage adapters, optical components, and industrial solutions.

The company also provides enterprise infrastructure software through businesses including VMware, which offers virtualization and private- and hybrid-cloud solutions; mainframe and enterprise software; and cybersecurity products.