Broadcom (NASDAQ:AVGO) Shares Down 1.5% – What’s Next?

Broadcom Inc. (NASDAQ:AVGO)’s stock price was down 1.5% during mid-day trading on Tuesday . The stock traded as low as $314.45 and last traded at $325.49. Approximately 21,322,790 shares changed hands during mid-day trading, a decline of 15% from the average daily volume of 25,077,504 shares. The stock had previously closed at $330.34.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom launched the BroadPeak connectivity chip that targets 5G Advanced and 6G and claims ~40% power savings; the company also forecasts AI revenue to double and ~50% semiconductor growth — a product and end‑market story that supports longer‑term revenue expansion. AVGO Expands Connectivity Portfolio to Tap 6G: What’s Ahead?
• Positive Sentiment: Analyst previews expect Broadcom to again beat consensus (some previews call for a “double‑beat”), reflecting strong AI demand and durable custom AI chip economics — this helps explain why some investors remain bullish despite recent weakness. Broadcom: Set For Another Double-Beat Next Week (Earnings Preview)
• Positive Sentiment: Wall Street and institutional interest remain strong (Zacks upgrade to a Buy and recent ETF activity from ARK/Growth‑oriented calls), which supports forward momentum if results and guidance meet expectations. Broadcom Inc. (AVGO) Upgraded to Buy: Here’s Why
• Neutral Sentiment: Earnings are the immediate catalyst — markets are focused on Q1 revenue/EPS, Q2 guidance, and management commentary on AI mix and margins; the next report (early March) could produce volatile moves in either direction. AVGO Earnings Are Just Around the Corner—Here’s What to Watch
• Neutral Sentiment: Consensus analyst price targets imply material upside (some reports show ~30–35% median upside), which can limit downside if guidance is solid but also sets high expectations that the company must meet. Wall Street Analysts Believe Broadcom Inc. (AVGO) Could Rally 35.33%: Here’s is How to Trade
• Negative Sentiment: Gross‑margin pressure is the principal near‑term risk: Broadcom has warned margins could decline as AI revenue mix rises (AI sales have lower gross margins), and investors are sensitive to any guidance that implies further margin erosion. AVGO Earnings Are Just Around the Corner—Here’s What to Watch
• Negative Sentiment: Citi trimmed its price target (from $480 to $458) while keeping a Buy — a modest negative signal that reflects fine‑tuning of expectations even as analyst sentiment remains positive. Citi Lowers PT on Broadcom Inc. (AVGO) Stock

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on AVGO shares. TD Cowen reiterated a “buy” rating on shares of Broadcom in a research report on Friday, December 12th. Benchmark increased their price target on Broadcom from $385.00 to $485.00 and gave the company a “buy” rating in a research note on Friday, December 12th. KeyCorp restated an “overweight” rating and set a $500.00 target price (up from $460.00) on shares of Broadcom in a research report on Friday, December 12th. Citigroup restated a “buy” rating and set a $458.00 price objective (down from $480.00) on shares of Broadcom in a report on Tuesday, February 17th. Finally, DA Davidson raised shares of Broadcom to a “hold” rating in a research report on Friday, February 13th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, Broadcom currently has a consensus rating of “Buy” and an average target price of $433.13.

Broadcom Stock Performance

The company has a debt-to-equity ratio of 0.76, a current ratio of 1.71 and a quick ratio of 1.58. The company has a 50 day simple moving average of $337.11 and a 200-day simple moving average of $342.27. The stock has a market capitalization of $1.54 trillion, a P/E ratio of 68.38, a price-to-earnings-growth ratio of 1.06 and a beta of 1.21.

Broadcom (NASDAQ:AVGO) last announced its quarterly earnings data on Thursday, December 11th. The semiconductor manufacturer reported $1.95 earnings per share for the quarter, topping the consensus estimate of $1.87 by $0.08. The company had revenue of $18.02 billion during the quarter, compared to analyst estimates of $17.46 billion. Broadcom had a return on equity of 37.45% and a net margin of 36.20%.The firm’s revenue for the quarter was up 28.2% on a year-over-year basis. During the same quarter last year, the firm posted $1.42 EPS. On average, equities analysts forecast that Broadcom Inc. will post 5.38 EPS for the current year.

Broadcom Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, December 31st. Investors of record on Monday, December 22nd were paid a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date was Monday, December 22nd. This is an increase from Broadcom’s previous quarterly dividend of $0.59. Broadcom’s dividend payout ratio is currently 54.62%.

Insider Buying and Selling at Broadcom

In other news, insider Mark David Brazeal sold 38,281 shares of Broadcom stock in a transaction on Wednesday, December 17th. The stock was sold at an average price of $327.65, for a total value of $12,542,769.65. Following the completion of the transaction, the insider directly owned 266,494 shares in the company, valued at approximately $87,316,759.10. The trade was a 12.56% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Kirsten M. Spears sold 30,000 shares of the business’s stock in a transaction on Wednesday, December 31st. The shares were sold at an average price of $347.82, for a total value of $10,434,600.00. Following the sale, the chief financial officer owned 277,237 shares in the company, valued at approximately $96,428,573.34. The trade was a 9.76% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 779,101 shares of company stock valued at $283,804,325 in the last quarter. Corporate insiders own 2.00% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in the company. Assetmark Inc. boosted its position in shares of Broadcom by 2.4% during the second quarter. Assetmark Inc. now owns 1,703,487 shares of the semiconductor manufacturer’s stock worth $469,566,000 after acquiring an additional 39,466 shares during the last quarter. Capital Counsel LLC NY bought a new position in shares of Broadcom during the 2nd quarter valued at about $221,000. Waterloo Capital L.P. grew its position in shares of Broadcom by 7.0% during the second quarter. Waterloo Capital L.P. now owns 48,361 shares of the semiconductor manufacturer’s stock valued at $13,331,000 after purchasing an additional 3,180 shares in the last quarter. Providence First Trust Co lifted its position in shares of Broadcom by 1,099.3% in the third quarter. Providence First Trust Co now owns 8,923 shares of the semiconductor manufacturer’s stock worth $2,944,000 after buying an additional 8,179 shares in the last quarter. Finally, Aspen Wealth Strategies LLC boosted its stake in Broadcom by 174.7% during the second quarter. Aspen Wealth Strategies LLC now owns 23,673 shares of the semiconductor manufacturer’s stock valued at $6,525,000 after buying an additional 15,055 shares during the last quarter. Institutional investors own 76.43% of the company’s stock.

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.