Broadcom (NASDAQ:AVGO) Trading Down 2.9% – Should You Sell?

Broadcom Inc. (NASDAQ:AVGO)’s share price was down 2.9% during mid-day trading on Friday . The company traded as low as $309.92 and last traded at $310.51. Approximately 42,692,657 shares were traded during mid-day trading, an increase of 58% from the average daily volume of 27,077,104 shares. The stock had previously closed at $319.84.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Strong AI demand and upbeat guidance: Q1 revenue growth and management commentary point to accelerating hyperscaler spending on Broadcom’s AI silicon and networking, supporting near‑term top‑line momentum. Broadcom Stock: Buy, Sell, or Hold?
• Positive Sentiment: Commercialization milestone — Tomahawk‑6 production shipping: Broadcom has begun production‑volume shipments of the industry’s first 102.4 Tbps switch, which can drive immediate revenue in AI networking racks and defend market share. Broadcom (AVGO) Commences Production Volume Shipping of World’s First 102.4 Tbps Switch
• Positive Sentiment: New security and optics products expand TAM: Broadcom is shipping a PQC‑safe, in‑flight network encryption solution and showcased 400G optical/3.5D XPU advances — product diversification that supports longer‑term software and hardware revenue streams. How The Broadcom (AVGO) Investment Story Is Shifting With AI Hopes And Valuation Doubts
• Neutral Sentiment: Analyst views are active but mixed — multiple price‑target hikes coexist with cautious notes, creating two‑sided trading flow and volatility around sentiment rather than fundamentals. Broadcom Inc. (AVGO) is Attracting Investor Attention
• Negative Sentiment: Clustered insider selling: several senior Broadcom executives (including the CFO and other officers) sold large blocks of shares on March 16–17, which is pressuring near‑term sentiment despite being legally disclosed, taxable or diversification sales. Kirsten M. Spears Form 4 (SEC)
• Negative Sentiment: Regulatory/regional risk: a European cloud‑provider group has urged EU regulators to seek interim measures tied to Broadcom’s changes to VMware programs in Europe, adding short‑term legal/regulatory uncertainty. Cloud industry group calls for EU interim measure against Broadcom over VMware
• Negative Sentiment: Meta MTIA detail shortfall: Meta confirmed Broadcom as a custom‑chip partner for MTIA inference chips but omitted a training‑class chip in its announcement, which limits immediate upside from the highest‑value training segment. Why Meta’s AI Chip Announcement Has Broadcom Investors Paying Attention

Analyst Ratings Changes

AVGO has been the subject of several recent research reports. Robert W. Baird set a $420.00 target price on shares of Broadcom in a report on Friday, December 12th. Citigroup upped their price target on shares of Broadcom from $458.00 to $475.00 and gave the company a “buy” rating in a report on Thursday, March 5th. Sanford C. Bernstein reissued an “outperform” rating and set a $475.00 price objective (up from $400.00) on shares of Broadcom in a research note on Friday, December 12th. Wells Fargo & Company raised Broadcom from an “equal weight” rating to an “overweight” rating and upped their target price for the company from $410.00 to $430.00 in a research note on Thursday, January 15th. Finally, UBS Group set a $475.00 price objective on Broadcom and gave the stock a “buy” rating in a research report on Monday, December 15th. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $435.30.

Broadcom Stock Down 2.9%

The stock has a fifty day moving average price of $331.12 and a 200-day moving average price of $344.89. The firm has a market cap of $1.47 trillion, a PE ratio of 60.65, a PEG ratio of 0.68 and a beta of 1.22. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.73 and a current ratio of 1.90.

Broadcom (NASDAQ:AVGO) last posted its quarterly earnings data on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.03 by $0.02. The company had revenue of $19.31 billion for the quarter, compared to analyst estimates of $19.10 billion. Broadcom had a net margin of 36.57% and a return on equity of 38.61%. The business’s quarterly revenue was up 29.5% on a year-over-year basis. During the same quarter last year, the firm posted $1.60 earnings per share. Research analysts expect that Broadcom Inc. will post 5.38 EPS for the current year.

Broadcom Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Monday, March 23rd will be issued a $0.65 dividend. This represents a $2.60 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend is Monday, March 23rd. Broadcom’s payout ratio is currently 50.78%.

Insider Activity

In related news, CFO Kirsten M. Spears sold 36,292 shares of the firm’s stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total transaction of $11,671,507.20. Following the transaction, the chief financial officer directly owned 327,760 shares in the company, valued at $105,407,616. This trade represents a 9.97% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Mark David Brazeal sold 50,488 shares of the firm’s stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total transaction of $16,236,940.80. Following the completion of the transaction, the insider owned 278,141 shares in the company, valued at approximately $89,450,145.60. The trade was a 15.36% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 528,970 shares of company stock valued at $177,150,321 over the last three months. Company insiders own 1.90% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently bought and sold shares of AVGO. ROSS JOHNSON & Associates LLC raised its stake in shares of Broadcom by 1,320.0% during the fourth quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer’s stock valued at $25,000 after purchasing an additional 66 shares in the last quarter. SWAN Capital LLC increased its stake in Broadcom by 261.9% during the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer’s stock valued at $26,000 after buying an additional 55 shares during the period. Longfellow Investment Management Co. LLC bought a new stake in shares of Broadcom during the 2nd quarter worth about $27,000. Teachers Insurance & Annuity Association of America acquired a new stake in shares of Broadcom in the 2nd quarter worth approximately $28,000. Finally, JCIC Asset Management Inc. bought a new position in shares of Broadcom in the third quarter valued at approximately $31,000. 76.43% of the stock is owned by institutional investors and hedge funds.

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.