Broadcom (NASDAQ:AVGO) Shares Down 3.1% on Analyst Downgrade

Broadcom Inc. (NASDAQ:AVGO)’s share price was down 3.1% on Tuesday after Wall Street Zen downgraded the stock from a strong-buy rating to a buy rating. The stock traded as low as $376.66 and last traded at $380.15. 32,303,850 shares changed hands during trading, an increase of 22% from the average session volume of 26,432,795 shares. The stock had previously closed at $392.13.

A number of other equities analysts have also recently issued reports on the company. Morgan Stanley set a $502.00 price objective on Broadcom and gave the stock an “overweight” rating in a report on Thursday, June 4th. Truist Financial raised their price objective on Broadcom from $545.00 to $550.00 and gave the company a “buy” rating in a report on Thursday, June 4th. Jefferies Financial Group set a $550.00 target price on Broadcom and gave the stock a “buy” rating in a research report on Thursday, June 4th. Deutsche Bank Aktiengesellschaft reaffirmed a “buy” rating and issued a $515.00 target price (up from $430.00) on shares of Broadcom in a research note on Thursday, June 4th. Finally, Wells Fargo & Company reiterated an “overweight” rating and set a $545.00 price target (up from $430.00) on shares of Broadcom in a research report on Thursday, May 14th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and three have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $490.13.

Insider Buying and Selling at Broadcom

In related news, Director Harry L. You acquired 1,000 shares of the company’s stock in a transaction dated Thursday, June 11th. The stock was purchased at an average price of $373.57 per share, with a total value of $373,570.00. Following the completion of the purchase, the director owned 38,466 shares in the company, valued at $14,369,743.62. This trade represents a 2.67% increase in their position. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Mark David Brazeal sold 4,825 shares of the firm’s stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $394.91, for a total transaction of $1,905,440.75. Following the completion of the transaction, the insider owned 269,989 shares in the company, valued at $106,621,355.99. This represents a 1.76% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 59,385 shares of company stock worth $21,301,057 over the last quarter. Company insiders own 1.90% of the company’s stock.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom continues to benefit from surging AI demand, with reports highlighting record semiconductor sales, strong bookings, and customer commitments tied to its AI chips and networking gear. Broadcom’s AI Push Boosts Semiconductor Sales: More Upside Ahead?
• Positive Sentiment: JPMorgan reportedly sees the recent pullback as a buying opportunity, pointing to Broadcom’s locked-in AI chip partnership with Google through 2031 and the company’s growing role in custom AI compute infrastructure. Ignore the noise: Top bank says AVGO stock dip is a buying opportunity, points to locked-in Broadcom–Google AI chip deal through 2031
• Positive Sentiment: Broadcom’s new AI XPV Platform, launched with Apollo and Blackstone, is designed to support more than 20 gigawatts of AI compute capacity and extends demand visibility for its XPUs and networking products through 2028. How Broadcom’s (AVGO) AI XPV Platform Ties Its Custom XPUs to the Next Wave of AI Compute Demand
• Neutral Sentiment: Several articles said Broadcom is drawing increased investor attention after its strong AI-related revenue growth and recent earnings beat, reinforcing the view that the stock remains a key AI infrastructure name. Broadcom Inc. (AVGO) is Attracting Investor Attention: Here is What You Should Know
• Negative Sentiment: Broadcom was also hit by a broader semiconductor and tech selloff, which weighed on chip stocks across the sector and contributed to the recent decline in AVGO shares. Nvidia, AMD, Broadcom Fall as Tech Selloff Catches Up With Chips
• Negative Sentiment: Wall Street Zen reportedly lowered its rating on Broadcom, adding another near-term headwind for sentiment. Broadcom (NASDAQ:AVGO) Stock Rating Lowered by Wall Street Zen

Institutional Investors Weigh In On Broadcom

Large investors have recently added to or reduced their stakes in the company. Brown Brothers Harriman & Co. increased its position in shares of Broadcom by 10.7% in the 3rd quarter. Brown Brothers Harriman & Co. now owns 77,411 shares of the semiconductor manufacturer’s stock valued at $25,539,000 after purchasing an additional 7,499 shares during the last quarter. Dana Investment Advisors Inc. raised its holdings in shares of Broadcom by 2.6% in the 3rd quarter. Dana Investment Advisors Inc. now owns 173,759 shares of the semiconductor manufacturer’s stock valued at $57,325,000 after purchasing an additional 4,442 shares in the last quarter. Sovran Advisors LLC lifted its position in shares of Broadcom by 121.3% during the 4th quarter. Sovran Advisors LLC now owns 30,631 shares of the semiconductor manufacturer’s stock worth $10,507,000 after purchasing an additional 16,789 shares during the last quarter. Thurston Springer Miller Herd & Titak Inc. lifted its position in shares of Broadcom by 406.1% during the 4th quarter. Thurston Springer Miller Herd & Titak Inc. now owns 11,994 shares of the semiconductor manufacturer’s stock worth $4,151,000 after purchasing an additional 9,624 shares during the last quarter. Finally, Aspiriant LLC grew its stake in shares of Broadcom by 18.5% during the fourth quarter. Aspiriant LLC now owns 12,016 shares of the semiconductor manufacturer’s stock worth $4,158,000 after purchasing an additional 1,872 shares in the last quarter. Institutional investors own 76.43% of the company’s stock.

Broadcom Trading Down 3.1%

The stock has a market cap of $1.81 trillion, a price-to-earnings ratio of 63.36, a P/E/G ratio of 0.72 and a beta of 1.41. The business’s 50 day moving average is $412.17 and its 200 day moving average is $363.42. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 2.01.

Broadcom (NASDAQ:AVGO) last posted its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share for the quarter, beating analysts’ consensus estimates of $2.40 by $0.04. The company had revenue of $22.19 billion for the quarter, compared to analysts’ expectations of $22.13 billion. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.Broadcom’s quarterly revenue was up 47.9% on a year-over-year basis. During the same period last year, the firm earned $1.58 earnings per share. As a group, equities analysts expect that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Stockholders of record on Monday, June 22nd will be issued a $0.65 dividend. The ex-dividend date is Monday, June 22nd. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. Broadcom’s dividend payout ratio is presently 43.33%.

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.