Broadcom (NASDAQ:AVGO) Stock Price Down 1.9% – Time to Sell?

Broadcom Inc. (NASDAQ:AVGO) shares dropped 1.9% during trading on Monday. The stock traded as low as $354.22 and last traded at $354.73. Approximately 15,292,703 shares were traded during mid-day trading, a decline of 39% from the average session volume of 25,036,375 shares. The stock had previously closed at $361.54.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s strategy of supplying customized AI chips and networking technology to hyperscalers—rather than competing directly with Nvidia in general-purpose GPUs—has reportedly helped secure multiyear contracts. This supports visibility into future AI revenue. Broadcom Is Building an AI Business Unlike Nvidia’s
• Positive Sentiment: Reports that Broadcom’s AI revenue is tripling reinforce the company’s strong exposure to the infrastructure spending boom, although the stock’s performance has lagged that growth. Broadcom’s AI Revenue Is Tripling
• Positive Sentiment: Broadcom’s reported $42 billion financing arrangement involving Anthropic is being viewed as a major long-term AI bet, potentially linking the company to substantial future chip demand and Anthropic’s growth. However, the size of the commitment also increases execution and counterparty risk. How Broadcom’s $42 Billion Loan to Anthropic Is a Bet on a $2 Trillion IPO

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on the stock. Sanford C. Bernstein reaffirmed a “buy” rating on shares of Broadcom in a research note on Monday, September 21st. Wall Street Zen lowered shares of Broadcom from a “strong-buy” rating to a “buy” rating in a research report on Saturday, July 18th. DA Davidson set a $350.00 target price on shares of Broadcom and gave the stock a “neutral” rating in a research report on Friday, September 4th. TD Cowen reaffirmed a “buy” rating and issued a $475.00 target price (down from $500.00) on shares of Broadcom in a report on Thursday, September 3rd. Finally, Citic Securities upgraded shares of Broadcom to a “buy” rating and lifted their price target for the company from $450.00 to $525.00 in a research report on Tuesday, September 8th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-seven have assigned a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $527.20.

Broadcom Trading Down 1.9%

The firm has a market cap of $1.69 trillion, a PE ratio of 45.30 and a beta of 1.46. The business has a 50-day moving average price of $371.24 and a two-hundred day moving average price of $382.80. 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 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 business had revenue of $29.59 billion during the quarter, compared to the consensus estimate of $29.24 billion. During the same quarter in the previous year, the company posted $1.69 EPS. The business’s revenue was up 85.5% on a year-over-year basis. Analysts forecast that Broadcom Inc. will post 10.37 EPS for the current 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 issued a dividend of $0.65 per share. This represents a $2.60 annualized dividend and a yield of 0.7%. The ex-dividend date was Monday, September 21st. Broadcom’s dividend payout ratio (DPR) is 33.21%.

Hedge Funds Weigh In On Broadcom

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in AVGO. State Street Corp raised its stake in Broadcom by 8.7% in the 2nd quarter. State Street Corp now owns 208,031,610 shares of the semiconductor manufacturer’s stock valued at $75,367,711,000 after purchasing an additional 16,651,378 shares during the last quarter. Bank of America Corp DE boosted its stake in shares of 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 purchasing an additional 2,685,916 shares during 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 purchasing an additional 1,892,721 shares during the last quarter. 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 purchasing an additional 1,140,598 shares during the last quarter. Finally, Legal & General Group Plc purchased a new stake in shares of Broadcom during the second quarter worth about $11,998,148,000. Institutional investors and hedge funds 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.