Broadcom (NASDAQ:AVGO) Shares Down 3.4% – Here’s What Happened

Broadcom Inc. (NASDAQ:AVGO)’s share price dropped 3.4% on Thursday . The company traded as low as $329.56 and last traded at $331.17. Approximately 21,618,264 shares traded hands during trading, a decline of 19% from the average daily volume of 26,763,242 shares. The stock had previously closed at $342.76.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Cathie Wood’s ARK filed a meaningful purchase (~87,148 shares), signaling institutional conviction in Broadcom’s exposure to AI infrastructure. Broadcom Inc. (AVGO) Draws ARK Investment Amid Positive AI Growth Outlook
• Positive Sentiment: Mirova US LLC materially increased its Broadcom stake, adding another institutional buyer to demand-side flows. Mirova US LLC Boosts Broadcom Stake by 589,713 Shares
• Positive Sentiment: Broadcom unveiled a Wi‑Fi 8 enterprise platform positioned for AI edge and enterprise networking — a product catalyst that could expand TAM for its networking chips. Broadcom Wi Fi 8 Launch Highlights AI Network Demand And Valuation Questions
• Positive Sentiment: Analysts and commentary are bullish on upside linked to hyperscaler CapEx (Google, Meta) and the AI infrastructure cycle — Forbes lays out a bull case toward ~$450 if demand trajectory holds. Here’s How AVGO Stock Could Rise To $450
• Neutral Sentiment: DA Davidson initiated coverage with a Neutral rating — a reminder that some sell-side views see limited near-term upside despite the AI backdrop. DA Davidson initiates coverage of Broadcom (AVGO) with neutral recommendation
• Negative Sentiment: Coverage and market commentary around the Wi‑Fi 8 launch also flagged valuation concerns — investors are debating whether Broadcom’s premium multiple already prices in the AI upside. Broadcom Wi Fi 8 Launch Highlights AI Network Demand And Valuation Questions
• Negative Sentiment: Some institutional managers trimmed positions (PRIMECAP, Randolph, SCS Capital reported cuts), creating localized selling pressure even as others added shares. PRIMECAP Management Co Cuts Broadcom Stake by 27,980 Shares

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on AVGO shares. Wells Fargo & Company raised shares of Broadcom from an “equal weight” rating to an “overweight” rating and upped their price target for the stock from $410.00 to $430.00 in a report on Thursday, January 15th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Broadcom in a report on Monday, December 29th. DA Davidson raised Broadcom to a “hold” rating in a report on Friday. Bank of America raised their target price on shares of Broadcom from $460.00 to $500.00 and gave the company a “buy” rating in a research note on Friday, December 12th. Finally, KeyCorp reissued an “overweight” rating and issued a $500.00 price target (up previously from $460.00) on shares of Broadcom in a research note on Friday, December 12th. Two investment 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 stock. According to data from MarketBeat, the company has an average rating of “Buy” and an average price target of $433.87.

Broadcom Price Performance

The firm has a market capitalization of $1.54 trillion, a P/E ratio of 68.31, a PEG ratio of 1.07 and a beta of 1.21. The business’s 50-day simple moving average is $343.88 and its 200 day simple moving average is $340.23. The company has a quick ratio of 1.58, a current ratio of 1.71 and a debt-to-equity ratio of 0.76.

Broadcom (NASDAQ:AVGO) last announced its quarterly earnings data on Thursday, December 11th. The semiconductor manufacturer reported $1.95 earnings per share for the quarter, topping analysts’ consensus estimates of $1.87 by $0.08. Broadcom had a net margin of 36.20% and a return on equity of 37.45%. The firm had revenue of $18.02 billion during the quarter, compared to analyst estimates of $17.46 billion. During the same period in the previous year, the business posted $1.42 EPS. The business’s quarterly revenue was up 28.2% on a year-over-year basis. Sell-side analysts forecast that Broadcom Inc. will post 5.38 earnings per share for the current year.

Broadcom Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, December 31st. Shareholders of record on Monday, December 22nd were given a dividend of $0.65 per share. The ex-dividend date was Monday, December 22nd. This is a positive change from Broadcom’s previous quarterly dividend of $0.59. This represents a $2.60 annualized dividend and a yield of 0.8%. Broadcom’s dividend payout ratio (DPR) is currently 54.62%.

Insider Buying and Selling

In other news, insider Mark David Brazeal sold 38,281 shares of the business’s stock in a transaction dated Wednesday, December 17th. The stock was sold at an average price of $327.65, for a total value of $12,542,769.65. Following the completion of the sale, the insider owned 266,494 shares of the company’s stock, valued at approximately $87,316,759.10. The trade was a 12.56% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Hock E. Tan sold 130,000 shares of the stock in a transaction dated Thursday, December 18th. The shares were sold at an average price of $326.02, for a total value of $42,382,600.00. Following the sale, the chief executive officer owned 595,638 shares of the company’s stock, valued at $194,189,900.76. This represents a 17.92% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 779,101 shares of company stock worth $283,804,325 in the last ninety days. Corporate insiders own 2.00% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in AVGO. ROSS JOHNSON & Associates LLC raised its stake in shares of Broadcom by 1,320.0% in the fourth quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer’s stock worth $25,000 after buying an additional 66 shares during the period. SWAN Capital LLC raised its stake in Broadcom by 261.9% during the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer’s stock worth $26,000 after acquiring an additional 55 shares during the period. Miller Global Investments LLC bought a new stake in Broadcom during the 4th quarter worth approximately $31,000. JCIC Asset Management Inc. purchased a new position in Broadcom during the third quarter valued at approximately $31,000. Finally, Nvest Wealth Strategies Inc. bought a new position in shares of Broadcom in the fourth quarter worth approximately $33,000. 76.43% of the stock is owned by hedge funds and other institutional investors.

Broadcom Company Profile

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops and supplies semiconductor and infrastructure software solutions for a broad range of markets. The company’s semiconductor business provides components and systems for wired and wireless communications, enterprise and cloud storage, networking and broadband access, serving original equipment manufacturers, cloud service providers, telecommunications carriers and industrial customers worldwide. Broadcom is headquartered in Irvine, California, and operates globally with research, development and sales organizations across North America, Europe and Asia.

On the semiconductor side, Broadcom’s portfolio includes system-on-chip (SoC) and application-specific integrated circuit (ASIC) solutions, radio-frequency and connectivity components, Ethernet switching and PHY devices, storage adapters and controllers, optical transceivers and other networking silicon.