Broadcom (NASDAQ:AVGO) Trading Down 1.7% – Should You Sell?

Broadcom Inc. (NASDAQ:AVGO)’s share price traded down 1.7% during mid-day trading on Wednesday . The stock traded as low as $315.55 and last traded at $315.93. 24,919,659 shares changed hands during trading, a decline of 7% from the average session volume of 26,923,930 shares. The stock had previously closed at $321.31.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom reported a standout quarter (record revenue, large AI revenue gains and strong margins) and management reiterated AI demand/guide that supports near‑term revenue growth — a primary reason for recent analyst bullishness. Read More.
• Positive Sentiment: Meta explicitly confirmed MTIA chips developed “in close partnership with Broadcom,” validating a major hyperscaler relationship and supporting continued inference chip demand (helps recurring, large‑scale deployments). Read More.
• Positive Sentiment: Product roadmap progress: new 400G optical DSP, 102.4T switches and a 3.5D XPU were showcased, reinforcing Broadcom’s positioning in AI networking and data‑center interconnects — technology that underpins future AI sales. Read More.
• Positive Sentiment: Street momentum: multiple price‑target increases and notable institutional interest (Rosenblatt, others) have pushed analyst coverage and buy ratings higher, supporting upside expectations even as the stock has been choppy. Read More.
• Neutral Sentiment: Broadcom is helping lead industry efforts on optical standards and open interconnect consortia — this can expand addressable markets but also highlights longer industry transitions (optical vs. copper) and competitive dynamics. Read More.
• Neutral Sentiment: Multiple members of Congress disclosed purchases of AVGO recently — a signal of institutional/informed interest but disclosures are delayed and not a direct trading signal. Read More.
• Negative Sentiment: Meta’s announcement emphasized MTIA for inference and did not include a new GenAI training chip, which raises the risk that Broadcom’s potential training‑chip revenue (higher margin, larger scale) could be delayed — a nearer‑term growth timing risk. Read More.
• Negative Sentiment: Valuation and downgrade voices: some analysts and commentaries warn AVGO’s rich multiple and aggressive forward expectations leave it vulnerable to sentiment swings, which may be why the stock is down despite solid execution. Read More.

Analyst Ratings Changes

AVGO has been the subject of several research analyst reports. Rosenblatt Securities raised their target price on shares of Broadcom from $450.00 to $500.00 and gave the company a “buy” rating in a research note on Thursday, March 5th. Wall Street Zen raised shares of Broadcom from a “hold” rating to a “buy” rating in a report on Saturday, December 13th. Deutsche Bank Aktiengesellschaft set a $430.00 target price on Broadcom and gave the stock a “buy” rating in a report on Friday, December 12th. The Goldman Sachs Group reiterated a “buy” rating and issued a $450.00 target price on shares of Broadcom in a research report on Monday, January 5th. Finally, Piper Sandler reissued an “overweight” rating and set a $430.00 price target (up from $375.00) on shares of Broadcom in a research note on Friday, December 12th. One 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. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $435.30.

Broadcom Stock Down 1.6%

The firm has a market cap of $1.50 trillion, a P/E ratio of 61.73, a price-to-earnings-growth ratio of 0.70 and a beta of 1.22. The company’s 50-day simple moving average is $331.91 and its 200 day simple moving average is $345.27. The company has a debt-to-equity ratio of 0.80, a current ratio of 1.90 and a quick ratio of 1.73.

Broadcom (NASDAQ:AVGO) last posted its earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share for the quarter, topping analysts’ consensus estimates of $2.03 by $0.02. The firm had revenue of $19.31 billion for the quarter, compared to the consensus estimate 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 period in the previous year, the firm posted $1.60 EPS. Research analysts anticipate that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Monday, March 23rd will be given a dividend of $0.65 per share. The ex-dividend date is Monday, March 23rd. This represents a $2.60 dividend on an annualized basis and a yield of 0.8%. Broadcom’s dividend payout ratio is 50.78%.

Insider Buying and Selling

In other news, insider Mark David Brazeal sold 30,000 shares of the firm’s stock in a transaction that occurred on Tuesday, January 6th. The stock was sold at an average price of $347.12, for a total value of $10,413,600.00. Following the completion of the sale, the insider directly owned 210,573 shares of the company’s stock, valued at $73,094,099.76. This trade represents a 12.47% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Hock E. Tan sold 70,000 shares of Broadcom stock in a transaction that occurred on Tuesday, January 6th. The stock was sold at an average price of $347.30, for a total value of $24,311,000.00. Following the completion of the transaction, the chief executive officer owned 132,836 shares of the company’s stock, valued at approximately $46,133,942.80. This trade represents a 34.51% decrease in their position. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 385,921 shares of company stock valued at $131,232,806. 1.90% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. ROSS JOHNSON & Associates LLC grew its holdings in Broadcom by 1,320.0% during the 4th 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 during the last quarter. SWAN Capital LLC lifted its stake in Broadcom by 261.9% in the fourth quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer’s stock worth $26,000 after purchasing an additional 55 shares during the last quarter. Longfellow Investment Management Co. LLC purchased a new position in shares of Broadcom during the second quarter valued at approximately $27,000. Teachers Insurance & Annuity Association of America purchased a new position in shares of Broadcom during the second quarter valued at approximately $28,000. Finally, New England Capital Financial Advisors LLC bought a new position in shares of Broadcom during the second quarter valued at approximately $31,000. 76.43% of the stock is owned by hedge funds and other institutional investors.

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.