Broadcom (NASDAQ:AVGO) Trading Down 1.9% – Here’s Why

Shares of Broadcom Inc. (NASDAQ:AVGO) were down 1.9% during trading on Friday . The stock traded as low as $331.80 and last traded at $340.20. Approximately 29,618,676 shares traded hands during mid-day trading, an increase of 17% from the average daily volume of 25,329,133 shares. The stock had previously closed at $346.82.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on AVGO shares. Bank of America upped their target price on shares of Broadcom from $300.00 to $400.00 and gave the stock a “buy” rating in a research report on Friday, September 5th. JPMorgan Chase & Co. boosted their price target on shares of Broadcom from $325.00 to $400.00 and gave the stock an “overweight” rating in a research note on Friday, September 5th. Deutsche Bank Aktiengesellschaft set a $400.00 price objective on shares of Broadcom and gave the company a “buy” rating in a report on Tuesday, October 14th. Citigroup reaffirmed a “buy” rating and issued a $415.00 target price (up from $350.00) on shares of Broadcom in a report on Tuesday, October 14th. Finally, The Goldman Sachs Group reiterated a “buy” rating and issued a $340.00 target price on shares of Broadcom in a research report on Wednesday, August 13th. Three analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Buy” and a consensus price target of $374.21.

Broadcom Stock Performance

The business’s fifty day moving average price is $348.54 and its two-hundred day moving average price is $298.92. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.37 and a current ratio of 1.50. The stock has a market capitalization of $1.61 trillion, a P/E ratio of 86.72, a P/E/G ratio of 1.21 and a beta of 1.19.

Broadcom (NASDAQ:AVGO) last announced its quarterly earnings results on Thursday, September 4th. The semiconductor manufacturer reported $1.69 EPS for the quarter, beating analysts’ consensus estimates of $1.66 by $0.03. Broadcom had a net margin of 31.59% and a return on equity of 36.60%. The firm had revenue of $15.95 billion during the quarter, compared to the consensus estimate of $15.82 billion. During the same quarter last year, the firm earned $1.24 EPS. The firm’s revenue for the quarter was up 22.0% compared to the same quarter last year. Broadcom has set its Q4 2025 guidance at EPS. As a group, sell-side analysts forecast that Broadcom Inc. will post 5.38 earnings per share for the current year.

Broadcom Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 30th. Stockholders of record on Monday, September 22nd were issued a $0.59 dividend. The ex-dividend date was Monday, September 22nd. This represents a $2.36 dividend on an annualized basis and a dividend yield of 0.7%. Broadcom’s payout ratio is 60.20%.

Insider Activity at Broadcom

In other Broadcom news, insider Charlie B. Kawwas sold 3,893 shares of the business’s stock in a transaction on Wednesday, September 17th. The shares were sold at an average price of $347.82, for a total transaction of $1,354,063.26. Following the transaction, the insider owned 25,295 shares in the company, valued at $8,798,106.90. The trade was a 13.34% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CEO Hock E. Tan sold 100,000 shares of the stock in a transaction on Tuesday, September 23rd. The shares were sold at an average price of $339.58, for a total transaction of $33,958,000.00. Following the completion of the sale, the chief executive officer directly owned 725,638 shares in the company, valued at approximately $246,412,152.04. This represents a 12.11% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have bought 3,550 shares of company stock worth $1,227,869 and have sold 665,271 shares worth $225,483,192. 2.00% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Broadcom

Hedge funds have recently added to or reduced their stakes in the company. Cheviot Value Management LLC bought a new position in shares of Broadcom during the first quarter valued at approximately $25,000. Sawyer & Company Inc boosted its holdings in Broadcom by 62.1% during the 2nd quarter. Sawyer & Company Inc now owns 94 shares of the semiconductor manufacturer’s stock valued at $26,000 after acquiring an additional 36 shares during the period. Longfellow Investment Management Co. LLC bought a new position in Broadcom in the 2nd quarter valued at $27,000. Legend Financial Advisors Inc. purchased a new stake in Broadcom in the second quarter worth $28,000. Finally, Teachers Insurance & Annuity Association of America bought a new stake in shares of Broadcom during the second quarter worth $28,000. 76.43% of the stock is currently owned by institutional investors.

About Broadcom

Broadcom Inc designs, develops, and supplies various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates in two segments, Semiconductor Solutions and Infrastructure Software.