Broadcom (NASDAQ:AVGO) Shares Down 10.4% – Here’s What Happened

Shares of Broadcom Inc. (NASDAQ:AVGO) were down 10.4% during trading on Thursday. The company traded as low as $290.12 and last traded at $291.53. 52,876,816 shares traded hands during mid-day trading, an increase of 113% from the average daily volume of 24,873,262 shares. The stock had previously closed at $325.48.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s AI semiconductor revenue is surging, and management sees significant growth potential over the next several years. One analysis argues that the market may not yet reflect that opportunity; another estimates the shares could be undervalued. Prediction: November Will Be a Huge Month for Broadcom Broadcom Stock Could Be 37% Undervalued
• Neutral Sentiment: Some coverage frames the recent pullback as a potential turning point, with a widening gap between AI business growth and the share-price trend. Whether fundamentals prompt a recovery remains uncertain. Broadcom Stock Could Be Approaching a Major Turning Point
• Negative Sentiment: Near-term risks include the broad AI-chip selloff and worries that higher interest rates could curb AI spending. Potential limits on new data-center permits in some states add uncertainty about future infrastructure buildouts. Broadcom’s AI Revenue Is Exploding. Here’s What Investors Should Watch Next. Broadcom Drops Amid Broad Chip Selloff
• Negative Sentiment: Investor positioning has also weighed on sentiment: ARK sold a large Broadcom holding during the selloff while buying Nvidia. Broadcom is still down sharply over the past month, despite the recent lift. ARK Buys Nvidia and Sells Broadcom Broadcom Is Still Down 22% in the Past Month

Analyst Upgrades and Downgrades

AVGO has been the topic of a number of research reports. JPMorgan Chase & Co. restated a “buy” rating on shares of Broadcom in a research report on Thursday, September 3rd. Piper Sandler started coverage on Broadcom in a research report on Wednesday, September 9th. They issued an “overweight” rating and a $460.00 target price for the company. Citic Securities raised Broadcom to a “buy” rating and raised their target price for the stock from $450.00 to $525.00 in a research report on Tuesday, September 8th. Oppenheimer started coverage on shares of Broadcom in a research note on Tuesday, October 27th. They set a “buy” rating on the stock. Finally, William Blair lowered shares of Broadcom from an “outperform” rating to a “market perform” rating in a report on Tuesday, October 27th. One research analyst has rated the stock with a Strong Buy rating, thirty-nine have assigned a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, Broadcom has an average rating of “Moderate Buy” and a consensus target price of $530.52.

Broadcom Stock Performance

The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.29 and a current ratio of 2.50. The firm has a 50 day moving average price of $347.89 and a two-hundred day moving average price of $366.17. The company has a market capitalization of $1.40 trillion, a P/E ratio of 37.51 and a beta of 1.49.

Broadcom (NASDAQ:AVGO) last posted its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, topping the consensus estimate of $3.22 by $0.10. The business had revenue of $29.59 billion during the quarter, compared to the consensus estimate of $29.24 billion. Broadcom had a return on equity of 48.33% and a net margin of 42.94%. Broadcom’s revenue was up 85.5% on a year-over-year basis. During the same quarter last year, the company earned $1.69 EPS. On average, research analysts expect that Broadcom Inc. will post 10.37 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st were paid a $0.65 dividend. This represents a $2.60 annualized dividend and a dividend yield of 0.9%. The ex-dividend date was Monday, September 21st. Broadcom’s payout ratio is currently 33.21%.

Institutional Investors Weigh In On Broadcom

A number of hedge funds have recently made changes to their positions in AVGO. State Street Corp boosted its holdings in shares of Broadcom by 8.7% in the 2nd quarter. State Street Corp now owns 208,031,610 shares of the semiconductor manufacturer’s stock worth $75,367,711,000 after acquiring an additional 16,651,378 shares in the last quarter. Bank of America Corp DE raised its position in Broadcom by 4.6% in the 2nd quarter. Bank of America Corp DE now owns 61,423,013 shares of the semiconductor manufacturer’s stock valued at $23,202,543,000 after purchasing an additional 2,685,916 shares during the last quarter. Wellington Management Group LLP raised its position in Broadcom by 3.8% in the 2nd quarter. Wellington Management Group LLP now owns 51,580,703 shares of the semiconductor manufacturer’s stock valued at $19,484,611,000 after purchasing an additional 1,892,721 shares during the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in Broadcom by 2.9% in the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 40,180,530 shares of the semiconductor manufacturer’s stock worth $15,178,195,000 after purchasing an additional 1,140,598 shares in the last quarter. Finally, Legal & General Group Plc acquired a new position in Broadcom in the second quarter worth $11,998,148,000. Institutional investors and hedge funds own 76.43% of the company’s stock.

About Broadcom

Broadcom Inc is a global technology company that designs and supplies semiconductor products and infrastructure software. Its semiconductor portfolio includes chips and components used in networking, broadband communications, wireless connectivity, data storage, and industrial applications. The company serves businesses across a range of industries, including communications, enterprise technology, and consumer electronics.

Broadcom also provides infrastructure software, including products for virtualization, cloud computing, cybersecurity, and enterprise operations.