Broadcom (NASDAQ:AVGO) Stock Price Down 1.3% – Should You Sell?

Shares of Broadcom Inc. (NASDAQ:AVGO) dropped 1.3% on Monday . The company traded as low as $420.16 and last traded at $422.40. 13,770,341 shares changed hands during mid-day trading, a decline of 46% from the average daily volume of 25,359,602 shares. The stock had previously closed at $427.76.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom expanded VMware Cloud Foundation security with faster vDefend deployment, on-premises malware sandboxing and API protection. The upgrades could improve VMware’s competitiveness against Nutanix and IBM while supporting growth in high-margin infrastructure software. Broadcom Boosts VCF Security: Can it Fend Off Nutanix and IBM?
• Positive Sentiment: Broadcom’s custom AI accelerator positioning remains a major bullish argument. AI semiconductor revenue has more than doubled year over year and is expected to grow sharply again, helping the company outperform some larger semiconductor peers. Top Semiconductor Stock Outpacing Nvidia With a 36% Gain Over 6 Months
• Positive Sentiment: Erste Group Bank raised its fiscal 2027 EPS estimate, while the broader brokerage consensus remains “Moderate Buy.” These updates indicate that analysts continue to expect durable earnings growth. Broadcom FY2027 EPS Estimate Increased by Erste Group Bank Broadcom Inc. Given Consensus Rating of Moderate Buy by Brokerages
• Positive Sentiment: Recent commentary points to demand from both hyperscale cloud customers and enterprise buyers, reinforcing the investment case for Broadcom’s diversified AI, networking and software businesses. Broadcom: Cloud Scale Meets Enterprise Demand
• Neutral Sentiment: One comparison article focuses on AVGO’s performance relative to Avnet and the broader technology sector, offering context rather than a new company-specific catalyst. Is Avnet Stock Outpacing Its Computer and Technology Peers This Year?
• Negative Sentiment: A potential FCC restriction on Chinese optical transceivers could create data-center supply-chain friction. While competitors such as Lumentum and Coherent may benefit, the broader uncertainty could weigh on Broadcom and other AI-infrastructure suppliers. AI Cold War Catches Light: Federal Friction in the Server Rack

Analysts Set New Price Targets

AVGO has been the topic of a number of research analyst reports. Oppenheimer restated an “outperform” rating and set a $535.00 price target (up from $450.00) on shares of Broadcom in a report on Thursday, June 4th. Wells Fargo & Company reiterated an “overweight” rating and set a $545.00 target price (up from $430.00) on shares of Broadcom in a research report on Thursday, May 14th. Royal Bank Of Canada increased their target price on shares of Broadcom from $360.00 to $400.00 and gave the stock a “sector perform” rating in a research note on Thursday, June 4th. Evercore restated an “outperform” rating and issued a $582.00 price target on shares of Broadcom in a report on Tuesday, May 19th. Finally, Bank of America upped their price objective on shares of Broadcom from $450.00 to $530.00 and gave the company a “buy” rating in a report on Thursday, June 4th. Twenty-eight equities research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $493.24.

Broadcom Price Performance

The company has a quick ratio of 2.01, a current ratio of 2.24 and a debt-to-equity ratio of 0.71. The business has a 50-day moving average price of $392.99 and a two-hundred day moving average price of $370.59. The company has a market capitalization of $2.01 trillion, a price-to-earnings ratio of 70.40, a price-to-earnings-growth ratio of 0.82 and a beta of 1.45.

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

Broadcom Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 22nd were given a dividend of $0.65 per share. The ex-dividend date of this dividend was Monday, June 22nd. This represents a $2.60 annualized dividend and a dividend yield of 0.6%. Broadcom’s payout ratio is presently 43.33%.

Insider Buying and Selling at Broadcom

In other Broadcom news, Director Justine Page sold 1,602 shares of Broadcom stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $373.86, for a total transaction of $598,923.72. Following the completion of the transaction, the director owned 17,426 shares in the company, valued at approximately $6,514,884.36. The trade was a 8.42% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Gayla J. Delly sold 1,890 shares of the business’s stock in a transaction that occurred on Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total value of $728,368.20. Following the sale, the director directly owned 31,326 shares of the company’s stock, valued at $12,072,413.88. This represents a 5.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 61,644 shares of company stock valued at $24,016,214. Insiders own 1.90% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Vanguard Group Inc. boosted its holdings in Broadcom by 0.8% during the fourth quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer’s stock worth $167,064,997,000 after purchasing an additional 3,919,715 shares during the last quarter. State Street Corp grew its holdings in Broadcom by 2.7% during the fourth 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 period. Geode Capital Management LLC grew its stake in shares of Broadcom by 1.4% during the 4th quarter. Geode Capital Management LLC now owns 111,277,280 shares of the semiconductor manufacturer’s stock worth $38,396,634,000 after acquiring an additional 1,548,699 shares during the period. Price T Rowe Associates Inc. MD boosted its position in Broadcom by 3.0% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 85,546,083 shares of the semiconductor manufacturer’s stock worth $29,607,500,000 after purchasing an additional 2,491,644 shares during the period. Finally, Norges Bank purchased a new position in Broadcom in the 4th quarter valued at approximately $24,252,196,000. 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.