Broadcom (NASDAQ:AVGO) Trading Down 1.1% – Should You Sell?

Broadcom Inc. (NASDAQ:AVGO) shares fell 1.1% during trading on Tuesday . The stock traded as low as $370.33 and last traded at $392.16. 36,293,466 shares changed hands during trading, an increase of 41% from the average session volume of 25,767,381 shares. The stock had previously closed at $396.60.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom announced a major AI infrastructure partnership with Apollo Global Management and Blackstone, launching a platform to finance AI buildouts and support Anthropic’s $35 billion capacity expansion using Broadcom chips and networking gear. Reuters article
• Positive Sentiment: Several analysts and commentators said the selloff looks overdone, pointing to Broadcom’s strong AI revenue growth, solid margins, and higher long-term cash-flow potential; Erste Group reportedly upgraded the stock to Buy. Insider Monkey article
• Positive Sentiment: Broadcom also expanded its Spring and Java security investments, reinforcing its enterprise software position and AI-related security offerings. GlobeNewswire article
• Neutral Sentiment: Coverage continues to highlight Broadcom as a widely watched AI/semiconductor name, with investor attention elevated after the recent earnings-driven volatility and strong but not enough-to-satisfy results. Zacks article
• Neutral Sentiment: Short-interest data showed no meaningful change in the reported figure, so it does not appear to be a real new catalyst for the stock.
• Negative Sentiment: Semiconductor stocks are under pressure as traders continue to unwind the recent AI-chip rally, and Broadcom remains caught in that broader sector correction. CNBC article

Wall Street Analyst Weigh In

Several brokerages recently commented on AVGO. Evercore restated an “outperform” rating and set a $582.00 target price on shares of Broadcom in a report on Tuesday, May 19th. Wall Street Zen upgraded shares of Broadcom from a “hold” rating to a “buy” rating in a report on Sunday. The Goldman Sachs Group restated a “buy” rating and set a $525.00 target price on shares of Broadcom in a report on Thursday, June 4th. TD Cowen restated a “buy” rating and set a $500.00 target price on shares of Broadcom in a report on Thursday, June 4th. Finally, Weiss Ratings upgraded shares of Broadcom from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Wednesday, May 27th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $490.13.

Broadcom Trading Down 1.1%

The business’s 50 day moving average price is $397.96 and its 200-day moving average price is $362.43. The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71. The company has a market cap of $1.86 trillion, a price-to-earnings ratio of 65.36, a PEG ratio of 0.70 and a beta of 1.41.

Broadcom (NASDAQ:AVGO) last posted its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.40 by $0.04. The company had revenue of $22.19 billion during the quarter, compared to analysts’ expectations of $22.13 billion. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. Broadcom’s quarterly revenue was up 47.9% compared to the same quarter last year. During the same quarter last year, the company posted $1.58 EPS. On average, equities analysts anticipate that Broadcom Inc. will post 9.97 EPS for the current fiscal year.

Broadcom Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Monday, June 22nd will be paid a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date is Monday, June 22nd. Broadcom’s dividend payout ratio (DPR) is currently 43.33%.

Insider Activity at Broadcom

In other news, insider Charlie B. Kawwas sold 10,000 shares of the firm’s stock in a transaction dated Wednesday, April 8th. The shares were sold at an average price of $345.23, for a total transaction of $3,452,300.00. Following the completion of the sale, the insider owned 787,184 shares in the company, valued at approximately $271,759,532.32. This trade represents a 1.25% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, Director Gayla J. Delly sold 1,000 shares of the firm’s stock in a transaction dated Thursday, April 9th. The stock was sold at an average price of $358.31, for a total transaction of $358,310.00. Following the sale, the director owned 32,352 shares of the company’s stock, valued at approximately $11,592,045.12. This represents a 3.00% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 324,282 shares of company stock worth $106,425,249 in the last quarter. 1.90% of the stock is owned by corporate insiders.

Institutional Trading of Broadcom

Hedge funds and other institutional investors have recently bought and sold shares of the business. ROSS JOHNSON & Associates LLC raised its stake in Broadcom by 1,320.0% in the 4th quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer’s stock worth $25,000 after purchasing an additional 66 shares in the last quarter. SWAN Capital LLC increased its holdings in Broadcom by 261.9% in 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. Networth Advisors LLC increased its holdings in Broadcom by 546.2% in the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer’s stock valued at $26,000 after buying an additional 71 shares during the period. Miller Global Investments LLC bought a new position in Broadcom in the 4th quarter valued at about $31,000. Finally, Nvest Wealth Strategies Inc. bought a new position in Broadcom in the 4th quarter valued at about $33,000. 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 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.