Broadcom (NASDAQ:AVGO) Stock Falls 4.3% – What’s Next?

Shares of Broadcom Inc. (NASDAQ:AVGO) traded down 4.3% during mid-day trading on Thursday. The company traded as low as $321.02 and last traded at $323.24. Approximately 27,631,662 shares were traded during mid-day trading, an increase of 11% from the average session volume of 24,926,646 shares. The stock had previously closed at $337.80.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: ETF investors bought approximately $89.8 million of Broadcom shares on October 21, signaling continued institutional demand. Broadcom Sees $89.8 Million in Net ETF Buying
• Positive Sentiment: Analysts continue to highlight Broadcom’s leadership in custom AI accelerators. Demand from major AI labs and hyperscalers, including Anthropic, OpenAI and Meta, supports management’s ambitious long-term AI semiconductor growth outlook. 3 Magnificent AI Chip Stocks
• Positive Sentiment: Tigress Financial initiated coverage with a Buy rating and a $600 price target, implying substantial upside from recent trading levels. Tigress Financial Broadcom Coverage
• Positive Sentiment: Broadcom launched Arcot Scam Defense, a real-time fraud-detection feature for digital payments. Strong initial pilot results could create incremental growth for its software and security businesses. Broadcom Debuts Arcot Scam Defense
• Neutral Sentiment: Broadcom remains the leading custom-chip design partner, but Alphabet is diversifying its TPU suppliers. Although Broadcom may lose market share, the overall AI accelerator market is expected to expand rapidly, potentially offsetting that loss. Broadcom AI Chip Business Risks
• Negative Sentiment: Investors are worried that customer-owned chip design and increased competition from MediaTek could reduce Broadcom’s role and margins in future AI programs. Alphabet’s supplier diversification is the clearest near-term risk. Broadcom AI Chip Business Risks
• Negative Sentiment: The broader market sell-off is weighing on AI stocks amid higher oil prices, inflation concerns and questions about whether massive data-center investments will generate sufficient returns. Technical commentary identifies the $320 area as an important support test. Broadcom Faces Critical $320 Test

Analysts Set New Price Targets

Several equities analysts recently commented on the company. President Capital upped their price objective on Broadcom from $520.00 to $546.00 and gave the company a “buy” rating in a research note on Thursday, September 3rd. Bank of America lowered their target price on shares of Broadcom from $530.00 to $460.00 and set a “buy” rating on the stock in a research note on Thursday, September 3rd. JPMorgan Chase & Co. reissued a “buy” rating on shares of Broadcom in a report on Thursday, September 3rd. Weiss Ratings upgraded Broadcom from a “buy (b-)” rating to a “buy (b)” rating in a research report on Thursday, October 8th. Finally, Wall Street Zen lowered shares of Broadcom from a “strong-buy” rating to a “buy” rating in a research report on Saturday, July 18th. One investment analyst has rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus price target of $529.17.

Broadcom Stock Performance

The firm has a market cap of $1.54 trillion, a P/E ratio of 41.08 and a beta of 1.46. The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.29 and a current ratio of 2.50. The business’s 50-day simple moving average is $356.05 and its 200 day simple moving average is $384.25.

Broadcom (NASDAQ:AVGO) last released its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, beating the consensus estimate of $3.22 by $0.10. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. The firm had revenue of $29.59 billion during the quarter, compared to analyst estimates of $29.24 billion. During the same quarter in the prior year, the firm earned $1.69 EPS. The business’s revenue for the quarter was up 85.5% compared to the same quarter last year. As a group, equities analysts predict that Broadcom Inc. will post 10.37 earnings per share for the current year.

Broadcom Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Monday, September 21st were issued a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date was Monday, September 21st. Broadcom’s payout ratio is currently 33.21%.

Hedge Funds Weigh In On Broadcom

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Cornerstone Advisors LLC bought a new stake in Broadcom during the 2nd quarter worth approximately $92,522,000. GAMMA Investing LLC increased its stake in shares of Broadcom by 8.8% during the 3rd quarter. GAMMA Investing LLC now owns 164,015 shares of the semiconductor manufacturer’s stock worth $55,889,000 after purchasing an additional 13,317 shares during the last quarter. ANB Bank purchased a new position in shares of Broadcom during the 3rd quarter valued at $1,181,000. Bank of America Corp DE raised its position in shares of Broadcom by 1.5% in the first quarter. Bank of America Corp DE now owns 58,737,097 shares of the semiconductor manufacturer’s stock valued at $18,179,719,000 after purchasing an additional 894,564 shares during the period. Finally, Clear Harbor Asset Management LLC bought a new position in Broadcom in the 2nd quarter worth about $3,302,000. 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 products. Its semiconductor solutions support data center, networking, broadband, wireless communications, storage, industrial and other electronic applications.

The company’s semiconductor portfolio includes networking and switching components, custom accelerators, connectivity and wireless devices, broadband equipment, optical products, storage controllers and related infrastructure technologies.