Broadcom (NASDAQ:AVGO) Shares Down 1.3% – Here’s What Happened

Shares of Broadcom Inc. (NASDAQ:AVGO) dropped 1.3% on Tuesday . The company traded as low as $314.84 and last traded at $318.29. Approximately 19,378,094 shares changed hands during mid-day trading, a decline of 28% from the average daily volume of 26,953,473 shares. The stock had previously closed at $322.51.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: New product and security offering — Broadcom launched Symantec CBX (Carbon Black XDR), expanding its enterprise security portfolio and supporting cross-sell into under‑resourced SOC teams, which can boost recurring software revenue. Read More.
• Positive Sentiment: Infrastructure software strength — Infrastructure Software revenue was highlighted at ~$6.8B with VMware growth and bookings above $9.2B; management cited AI-driven demand for VCF and the new Symantec CBX as tailwinds. That points to higher-margin, recurring revenue growth. Read More.
• Positive Sentiment: Large government/defense business — Broadcom and Carahsoft reached a DISA agreement consolidating software contracts for DoD agencies and enabling clearer pricing and private‑cloud security packaging, which supports durable government contract revenue. Read More.
• Positive Sentiment: Street and thematic bullishness — Recent analyst upgrades (e.g., Bernstein’s bullish AI upgrade) and coverage pieces arguing Broadcom can exceed its $100B AI target have driven investor optimism about long‑term AI revenue upside. Read More. Read More.
• Neutral Sentiment: Positive publicity from commentators — Jim Cramer and other outlets have been spotlighting Broadcom as a top AI/semiconductor pick, which supports retail and momentum flows but is less material than earnings/bookings. Read More.
• Negative Sentiment: Supply constraints and TSMC capacity bottleneck — Broadcom warned of supply-chain pressure and said TSMC capacity is a constraint for AI hardware, increasing execution risk and potential shipment delays for high‑value AI products. This is a primary near‑term headwind for the stock. Read More.
• Negative Sentiment: Regulatory/legal risk in Europe — A formal EU antitrust complaint targets Broadcom’s VMware licensing changes, which could lead to higher compliance costs, contract remediation, or reduced access for some European cloud providers. Read More.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the company. Rosenblatt Securities boosted their price target on Broadcom from $450.00 to $500.00 and gave the company a “buy” rating in a research note on Thursday, March 5th. Deutsche Bank Aktiengesellschaft set a $430.00 price objective on shares of Broadcom and gave the stock a “buy” rating in a research note on Friday, December 12th. Robert W. Baird set a $420.00 target price on shares of Broadcom in a research report on Friday, December 12th. Royal Bank Of Canada reduced their target price on shares of Broadcom from $370.00 to $340.00 and set a “sector perform” rating for the company in a report on Monday, March 2nd. Finally, Oppenheimer increased their price target on shares of Broadcom from $435.00 to $450.00 and gave the stock an “outperform” rating in a research report on Friday, December 12th. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and three have assigned a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $435.30.

Broadcom Trading Down 1.3%

The stock has a 50-day moving average price of $329.84 and a two-hundred day moving average price of $345.72. The stock has a market capitalization of $1.51 trillion, a PE ratio of 62.17, a PEG ratio of 0.67 and a beta of 1.22. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.73 and a current ratio of 1.90.

Broadcom (NASDAQ:AVGO) last released its earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share (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 analyst estimates of $19.10 billion. During the same period in the prior year, the firm posted $1.60 EPS. The firm’s quarterly revenue was up 29.5% compared to the same quarter last year. As a group, equities analysts forecast that Broadcom Inc. will post 5.38 earnings per share for the current year.

Broadcom Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Stockholders of record on Monday, March 23rd will be given a dividend of $0.65 per share. This represents a $2.60 annualized dividend and a dividend yield of 0.8%. The ex-dividend date is Monday, March 23rd. Broadcom’s dividend payout ratio (DPR) is presently 50.78%.

Insider Activity at Broadcom

In related news, insider Mark David Brazeal sold 50,488 shares of the company’s stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total value of $16,236,940.80. Following the completion of the transaction, the insider owned 278,141 shares of the company’s stock, valued at approximately $89,450,145.60. This represents a 15.36% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CFO Kirsten M. Spears sold 36,292 shares of the stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total value of $11,671,507.20. Following the completion of the sale, the chief financial officer owned 327,760 shares of the company’s stock, valued at $105,407,616. The trade was a 9.97% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 428,970 shares of company stock worth $142,585,321 in the last 90 days. Company insiders own 1.90% of the company’s stock.

Institutional Trading of Broadcom

Several institutional investors and hedge funds have recently added to or reduced their stakes in AVGO. Norges Bank purchased a new stake in Broadcom during the 4th quarter valued at approximately $24,252,196,000. Cardano Risk Management B.V. boosted its position in shares of Broadcom by 895.2% during the fourth quarter. Cardano Risk Management B.V. now owns 12,689,800 shares of the semiconductor manufacturer’s stock worth $4,391,940,000 after acquiring an additional 11,414,701 shares during the last quarter. Edgewood Management LLC purchased a new position in Broadcom during the second quarter valued at $1,571,438,000. State Street Corp grew its stake 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 acquiring an additional 5,040,801 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership increased its holdings in Broadcom by 499.4% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 5,634,232 shares of the semiconductor manufacturer’s stock valued at $1,858,789,000 after acquiring an additional 4,694,313 shares during the last quarter. 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.