Broadcom (NASDAQ:AVGO) Trading Down 3.2% – Here’s Why

Broadcom Inc. (NASDAQ:AVGO) shares fell 3.2% during trading on Tuesday . The stock traded as low as $377.01 and last traded at $380.00. 22,786,186 shares traded hands during mid-day trading, a decline of 9% from the average session volume of 25,071,703 shares. The stock had previously closed at $392.43.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom received a Zacks Rank #2 (Buy), supported by improving earnings estimates. Analysts’ average price target implies approximately 32% upside, although such targets are not guarantees. Broadcom Inc. Upgraded to Buy
• Positive Sentiment: Optimistic analysts argue AVGO remains undervalued, with some estimates suggesting substantial upside, driven by custom AI-chip demand, strong orders and visibility extending into 2028. Broadcom Looks Undervalued With 50% Upside
• Positive Sentiment: Broadcom’s upcoming quarterly dividend remains scheduled for September 30, at $0.65 per share, providing continued income support for shareholders. Broadcom to Pay Dividends Next Month
• Positive Sentiment: VMware Explore 2026 will highlight private-cloud AI technologies, technical sessions and certifications, potentially reinforcing Broadcom’s software and enterprise-AI strategy. VMware Explore 2026 Programming
• Neutral Sentiment: Some investors are positioning for a rebound after the recent selloff, while others are comparing Broadcom’s custom-silicon position with Marvell’s. These reports may increase volatility without changing fundamentals. AVGO Stock Rebound
• Negative Sentiment: A report that several hedge funds sold AVGO during the second quarter and shifted into other semiconductor stocks is weighing on sentiment and raising questions about relative valuation. Hedge Funds Turn Bearish on Broadcom
• Negative Sentiment: Shares have faced pressure following reports of a VMware vCenter Syslog Server security vulnerability, alongside broader concerns about whether AI funding and spending can continue at current levels. Bet on a Broadcom Bounce
• Negative Sentiment: Investors are also assessing potential AI margin pressure and competition from Astera Labs, whose faster growth and rising estimates are being viewed by some analysts as more attractive than Broadcom. ALAB vs. AVGO

Analyst Ratings Changes

Several equities research analysts recently commented on the stock. Dbs Bank upgraded shares of Broadcom to a “moderate buy” rating in a research report on Thursday, June 18th. Susquehanna reaffirmed a “positive” rating and issued a $490.00 target price (up from $450.00) on shares of Broadcom in a research report on Thursday, May 28th. Morgan Stanley set a $502.00 price target on Broadcom and gave the company an “overweight” rating in a research report on Thursday, June 4th. Erste Group Bank restated a “hold” rating on shares of Broadcom in a research report on Tuesday, July 7th. Finally, Truist Financial lifted their target price on Broadcom from $545.00 to $550.00 and gave the company a “buy” rating in a research note on Thursday, June 4th. Twenty-eight investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $493.24.

Broadcom Trading Down 3.2%

The company has a 50 day moving average of $389.71 and a 200 day moving average of $374.06. The firm has a market cap of $1.81 trillion, a P/E ratio of 63.31, a PEG ratio of 0.75 and a beta of 1.45. The company has a debt-to-equity ratio of 0.71, a quick ratio of 2.01 and a current ratio of 2.24.

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, beating analysts’ consensus estimates of $2.40 by $0.04. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The firm had revenue of $22.19 billion during the quarter, compared to analysts’ expectations of $22.13 billion. During the same period in the previous year, the company earned $1.58 earnings per share. The company’s revenue was up 47.9% compared to the same quarter last year. Analysts predict that Broadcom Inc. will post 10.24 EPS for the current fiscal year.

Broadcom Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 22nd were paid a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend was Monday, June 22nd. Broadcom’s dividend payout ratio (DPR) is presently 43.33%.

Insider Buying and Selling

In related news, Director Harry L. You purchased 1,000 shares of the stock in a transaction on Thursday, June 11th. The shares were bought at an average price of $373.57 per share, for a total transaction of $373,570.00. Following the completion of the acquisition, the director directly owned 38,466 shares in the company, valued at approximately $14,369,743.62. This trade represents a 2.67% increase in their position. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Gayla J. Delly sold 1,890 shares of the company’s stock in a transaction on Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total transaction of $728,368.20. Following the sale, the director directly owned 31,326 shares of the company’s stock, valued at approximately $12,072,413.88. This represents a 5.69% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 61,644 shares of company stock worth $24,016,214 over the last ninety days. Company insiders own 1.90% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. Fullerton Advisors LLC increased its holdings in shares of Broadcom by 1.3% during the 1st quarter. Fullerton Advisors LLC now owns 1,989 shares of the semiconductor manufacturer’s stock worth $616,000 after purchasing an additional 25 shares during the period. NORTHSTAR ASSET MANAGEMENT Co raised its holdings in Broadcom by 0.5% in the 1st quarter. NORTHSTAR ASSET MANAGEMENT Co now owns 5,350 shares of the semiconductor manufacturer’s stock valued at $1,656,000 after acquiring an additional 25 shares in the last quarter. RFG Holdings Inc. raised its holdings in Broadcom by 0.3% in the 1st quarter. RFG Holdings Inc. now owns 8,499 shares of the semiconductor manufacturer’s stock valued at $2,631,000 after acquiring an additional 26 shares in the last quarter. Yukon Wealth Management Inc. grew its holdings in shares of Broadcom by 1.1% during the 1st quarter. Yukon Wealth Management Inc. now owns 2,501 shares of the semiconductor manufacturer’s stock worth $774,000 after purchasing an additional 26 shares in the last quarter. Finally, NerdWallet Wealth Partners LLC increased its position in shares of Broadcom by 2.6% during the second quarter. NerdWallet Wealth Partners LLC now owns 1,057 shares of the semiconductor manufacturer’s stock valued at $399,000 after purchasing an additional 27 shares during the period. 76.43% of the stock is currently 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.