Broadcom (NASDAQ:AVGO) Trading Down 3.4% – Time to Sell?

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

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom unveiled a new Wi‑Fi 8 enterprise platform aimed at AI edge and enterprise networking, reinforcing its strategy to monetize AI traffic beyond servers. Broadcom Targets AI Edge With New Wi Fi 8 Enterprise Platform
• Positive Sentiment: Coverage highlights the Wi‑Fi 8 launch as extending Broadcom’s AI networking story into enterprises — a potential multi‑year revenue tailwind if adoption follows. Broadcom Wi Fi 8 Launch Extends AI Networking Story Into Enterprises
• Positive Sentiment: UBS and other outlets reiterated bullish views on AVGO’s AI momentum and server demand, suggesting multi‑year upside even as near‑term beat/raise potential is limited. UBS Remains Bullish on Broadcom (AVGO) Amid Strong Server Demand and Limited Near-Term Earnings Upside
• Positive Sentiment: Some funds and strategies are increasing exposure to Broadcom on its AI/infrastructure software positioning (SGA large cap growth mention). SGA U.S. Large Cap Growth Strategy Bets on Broadcom (AVGO)
• Neutral Sentiment: Analytical comparisons with Nvidia highlight Broadcom as a serious AI‑chip competitor; useful context but not an immediate catalyst. Nvidia and Broadcom’s AI Chips Will Go Head-to-Head. How They Compare.
• Neutral Sentiment: Short‑interest data reported an apparent large increase but reads as zero shares (data anomaly); days‑to‑cover shows 0.0 — treat this as noisy/uncertain positioning data rather than a real signal.
• Negative Sentiment: Several institutional managers trimmed or cut positions recently (Morningstar Investment Management, SCS Capital Management, Intermede Investment Partners), which can pressure the stock if larger managers follow. Morningstar Investment Management Cuts Broadcom Inc. Stake Sharply
• Negative Sentiment: Technical/market caution: commentary flagged a “risky pattern” despite tailwinds, which may encourage profit‑taking after AVGO’s strong run. Broadcom stock: risky pattern emerges despite solid tailwinds

Wall Street Analysts Forecast Growth

AVGO has been the subject of a number of research reports. Wells Fargo & Company upgraded Broadcom from an “equal weight” rating to an “overweight” rating and lifted their price objective for the stock from $410.00 to $430.00 in a research report on Thursday, January 15th. Bank of America increased their price objective on shares of Broadcom from $460.00 to $500.00 and gave the stock a “buy” rating in a research note on Friday, December 12th. Wolfe Research upgraded Broadcom from a “peer perform” rating to an “outperform” rating and set a $400.00 price objective on the stock in a research note on Friday, January 30th. KeyCorp restated an “overweight” rating and issued a $500.00 price target (up from $460.00) on shares of Broadcom in a research note on Friday, December 12th. Finally, Raymond James Financial set a $420.00 price objective on shares of Broadcom and gave the stock an “outperform” rating in a research note on Thursday, November 20th. Two investment analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating and one has given a Hold rating to the company. According to MarketBeat, the company currently has an average rating of “Buy” and a consensus price target of $433.87.

Broadcom Price Performance

The company has a market cap of $1.57 trillion, a P/E ratio of 69.57, a PEG ratio of 1.10 and a beta of 1.21. The company has a current ratio of 1.71, a quick ratio of 1.58 and a debt-to-equity ratio of 0.76. The business’s fifty day moving average is $346.17 and its 200 day moving average is $340.08.

Broadcom (NASDAQ:AVGO) last posted its earnings results 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. The business had revenue of $18.02 billion for the quarter, compared to analyst estimates of $17.46 billion. Broadcom had a net margin of 36.20% and a return on equity of 37.45%. Broadcom’s revenue was up 28.2% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.42 EPS. As a group, sell-side analysts anticipate that Broadcom Inc. will post 5.38 EPS for the current year.

Broadcom Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, December 31st. Investors of record on Monday, December 22nd were issued a $0.65 dividend. This represents a $2.60 annualized dividend and a yield of 0.8%. This is an increase from Broadcom’s previous quarterly dividend of $0.59. The ex-dividend date was Monday, December 22nd. Broadcom’s dividend payout ratio (DPR) is presently 54.62%.

Insider Transactions at Broadcom

In other news, Director Henry Samueli sold 320,316 shares of the firm’s stock in a transaction on Monday, December 8th. The stock was sold at an average price of $400.53, for a total value of $128,296,167.48. Following the transaction, the director directly owned 37,326,540 shares in the company, valued at $14,950,399,066.20. This trade represents a 0.85% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CFO Kirsten M. Spears sold 30,000 shares of the company’s stock in a transaction that occurred on Wednesday, December 31st. The shares were sold at an average price of $347.82, for a total transaction of $10,434,600.00. Following the sale, the chief financial officer directly owned 277,237 shares of the company’s stock, valued at approximately $96,428,573.34. This represents a 9.76% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 779,901 shares of company stock worth $284,069,237 over the last 90 days. 2.00% of the stock is currently owned by insiders.

Institutional Trading of Broadcom

Hedge funds have recently bought and sold shares of the stock. Norges Bank bought a new position in shares of Broadcom during the 4th quarter valued at approximately $24,252,196,000. Vanguard Group Inc. increased its position in Broadcom by 1.3% during the 2nd quarter. Vanguard Group Inc. now owns 483,442,939 shares of the semiconductor manufacturer’s stock valued at $133,261,046,000 after purchasing an additional 6,222,802 shares during the period. Edgewood Management LLC purchased a new stake in Broadcom during the second quarter worth $1,571,438,000. Arrowstreet Capital Limited Partnership lifted its stake in shares of Broadcom by 499.4% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 5,634,232 shares of the semiconductor manufacturer’s stock worth $1,858,789,000 after purchasing an additional 4,694,313 shares during the last quarter. Finally, Massachusetts Financial Services Co. MA grew its position in shares of Broadcom by 115.5% in the 2nd quarter. Massachusetts Financial Services Co. MA now owns 6,017,340 shares of the semiconductor manufacturer’s stock worth $1,658,680,000 after buying an additional 3,224,739 shares during the last quarter. Hedge funds and other institutional investors own 76.43% of the company’s stock.

About Broadcom

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.