Broadcom (NASDAQ:AVGO) Trading Down 2.3% – Should You Sell?

Broadcom Inc. (NASDAQ:AVGO) shares fell 2.3% on Tuesday . The company traded as low as $405.86 and last traded at $411.07. 20,548,121 shares were traded during trading, a decline of 17% from the average session volume of 24,608,828 shares. The stock had previously closed at $420.71.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom announced a new five-year renewal with LSEG to expand use of VMware Cloud Foundation, extending a long-running relationship and adding another reference customer for its cloud infrastructure software. LSEG renews Broadcom partnership to expand cloud infrastructure strategy (AVGO)
• Positive Sentiment: Wall Street remains constructive on Broadcom, with recent analyst price targets clustered well above the current trading range, reflecting confidence in AVGO’s AI infrastructure exposure and earnings growth. Wall Street sets Broadcom stock price target for next 12 months
• Positive Sentiment: Recent commentary continues to frame Broadcom as a major beneficiary of the AI infrastructure boom, with investors focusing on its strong revenue growth and leadership in chips and infrastructure software. ALAB vs. AVGO: Which AI Infrastructure Stock Is the Better Buy Now?
• Neutral Sentiment: Several market-watch articles and search-driven updates kept AVGO in focus, but they did not add new fundamental information likely to move the stock on their own. Investors Heavily Search Broadcom Inc. (AVGO): Here is What You Need to Know
• Negative Sentiment: Despite the positive news flow, AVGO had recently been declining in trading, suggesting investors may be taking profits or reacting to broader market weakness rather than the company’s fundamentals. Broadcom Inc. (AVGO) Declines More Than Market: Some Information for Investors

Analysts Set New Price Targets

A number of brokerages have weighed in on AVGO. Wolfe Research upgraded shares of Broadcom from a “peer perform” rating to an “outperform” rating and set a $400.00 price target for the company in a research report on Friday, January 30th. JPMorgan Chase & Co. lifted their price objective on shares of Broadcom from $475.00 to $500.00 and gave the company an “overweight” rating in a report on Thursday, March 5th. Rosenblatt Securities restated a “buy” rating and issued a $500.00 price objective on shares of Broadcom in a report on Tuesday, April 7th. Morgan Stanley lifted their price objective on shares of Broadcom from $462.00 to $470.00 and gave the company an “overweight” rating in a report on Friday, March 6th. Finally, Wells Fargo & Company restated an “overweight” rating and issued a $545.00 price objective (up from $430.00) on shares of Broadcom in a report on Thursday, May 14th. Two analysts have rated the stock with a Strong Buy rating, twenty-seven have given a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $448.10.

Broadcom Stock Down 2.3%

The company has a current ratio of 1.90, a quick ratio of 1.73 and a debt-to-equity ratio of 0.80. The company has a market cap of $1.95 trillion, a price-to-earnings ratio of 80.29, a PEG ratio of 0.88 and a beta of 1.43. The firm’s fifty day simple moving average is $367.36 and its 200 day simple moving average is $354.90.

Broadcom (NASDAQ:AVGO) last posted its quarterly earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 EPS for the quarter, topping the consensus estimate of $2.03 by $0.02. Broadcom had a net margin of 36.57% and a return on equity of 38.61%. The company had revenue of $19.31 billion during the quarter, compared to analysts’ expectations of $19.10 billion. During the same quarter in the previous year, the business posted $1.60 EPS. The firm’s revenue was up 29.5% on a year-over-year basis. Sell-side analysts predict that Broadcom Inc. will post 9.95 earnings per share for the current year.

Broadcom Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Monday, March 23rd were issued a dividend of $0.65 per share. This represents a $2.60 annualized dividend and a yield of 0.6%. The ex-dividend date was Monday, March 23rd. Broadcom’s payout ratio is 50.78%.

Insider Activity

In other Broadcom news, insider Charlie B. Kawwas sold 39,116 shares of the business’s stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $321.61, for a total transaction of $12,580,096.76. Following the completion of the transaction, the insider owned 74,626 shares in the company, valued at $24,000,467.86. The trade was a 34.39% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Kirsten M. Spears sold 36,292 shares of the business’s stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total transaction of $11,671,507.20. Following the transaction, the chief financial officer owned 327,760 shares of the company’s stock, valued at $105,407,616. This trade represents a 9.97% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders have sold 324,282 shares of company stock worth $106,425,249. Insiders own 1.90% of the company’s stock.

Institutional Trading of Broadcom

Institutional investors have recently modified their holdings of the stock. Norges Bank purchased a new stake in Broadcom in the 4th quarter valued at $24,252,196,000. Cardano Risk Management B.V. raised its position in Broadcom by 895.2% in the 4th quarter. Cardano Risk Management B.V. now owns 12,689,800 shares of the semiconductor manufacturer’s stock valued at $4,391,940,000 after purchasing an additional 11,414,701 shares during the last quarter. Arrowstreet Capital Limited Partnership raised its position in Broadcom by 118.1% in the 1st quarter. Arrowstreet Capital Limited Partnership now owns 18,739,006 shares of the semiconductor manufacturer’s stock valued at $5,799,889,000 after purchasing an additional 10,145,377 shares during the last quarter. State Street Corp raised its position in Broadcom by 2.7% in the 4th quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer’s stock valued at $65,788,194,000 after purchasing an additional 5,040,801 shares during the last quarter. Finally, Vanguard Group Inc. raised its position in Broadcom by 0.8% during the 4th quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer’s stock worth $167,064,997,000 after buying an additional 3,919,715 shares during the last quarter. Hedge funds and other institutional investors 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.