Broadcom (NASDAQ:AVGO) Shares Down 1.2% Following Insider Selling

Broadcom Inc. (NASDAQ:AVGO)’s stock price traded down 1.2% during trading on Monday after an insider sold shares in the company. The company traded as low as $336.50 and last traded at $343.42. 30,898,399 shares traded hands during mid-day trading, an increase of 10% from the average session volume of 28,116,754 shares. The stock had previously closed at $347.62.

Specifically, CFO Kirsten M. Spears sold 30,000 shares of Broadcom stock in a transaction that occurred 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 of the company’s stock, valued at approximately $96,428,573.34. The trade was a 9.76% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Mark David Brazeal sold 25,921 shares of the firm’s stock in a transaction on Friday, December 26th. The stock was sold at an average price of $352.07, for a total value of $9,126,006.47. Following the completion of the sale, the insider directly owned 240,573 shares of the company’s stock, valued at $84,698,536.11. This represents a 9.73% decrease in their ownership of the stock. The SEC filing for this sale provides additional information.

Analyst Upgrades and Downgrades

AVGO has been the subject of several research reports. Evercore ISI increased their price target on Broadcom from $342.00 to $403.00 and gave the stock an “outperform” rating in a research note on Wednesday, October 15th. TD Cowen lifted their target price on shares of Broadcom from $405.00 to $450.00 and gave the stock a “buy” rating in a research note on Friday, December 12th. The Goldman Sachs Group restated a “buy” rating and set a $450.00 price target on shares of Broadcom in a research note on Monday. Barclays reiterated an “overweight” rating and issued a $500.00 price objective (up from $450.00) on shares of Broadcom in a research note on Friday, December 12th. Finally, Macquarie assumed coverage on Broadcom in a report on Monday, September 15th. They issued an “outperform” rating and a $420.00 price target for the company. Three research analysts have rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, Broadcom has an average rating of “Buy” and a consensus price target of $436.89.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: BofA names Broadcom among top chip stocks to “ride the wave,” signaling strong institutional conviction that AVGO benefits from the AI/data?center cycle and should capture ongoing infrastructure spending. Nvidia, Broadcom, AMD among BofA’s top chip stocks to ‘ride the wave’
• Positive Sentiment: Analysts and coverage upgrades are pushing consensus targets higher (InsiderTrades/MarketBeat cite an early?January consensus near $437), supporting a multi?quarter growth view driven by custom ASICs/GPUs and software/platform revenue. This underpins longer?term upside even if near?term churn occurs. The AI Tech Paradox: Insiders Sell, the Case for Buying Gets Stronger (AVGO)
• Positive Sentiment: Broadcom appears on several “top AI stocks” lists (e.g., The Motley Fool), which highlights investor interest in Broadcom’s custom AI chip opportunity and keeps demand for the shares among growth?oriented funds. 3 Best Artificial Intelligence Stocks to Buy in January
• Neutral Sentiment: Valuation reviews are active after a multi?year run and recent pullback; analysts and outlets are assessing whether current levels reflect the growth outlook or warrant further consolidation — this keeps trading volatile until earnings/guidance clarity. Broadcom (AVGO): Assessing Valuation After Recent Share Price Softness and Multi?Year Run
• Negative Sentiment: CFO Kirsten M. Spears sold 30,000 shares (disclosed in an SEC filing), a sizable opportunistic insider sale that can amplify short?term downside as investors parse whether sales are routine compensation monetization or signaling near?term allocation. SEC Form 4 — Kirsten M. Spears

Broadcom Stock Down 1.2%

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 fifty day moving average price of $362.90 and a 200 day moving average price of $328.40. The company has a market cap of $1.63 trillion, a PE ratio of 72.15, a price-to-earnings-growth ratio of 1.17 and a beta of 1.21.

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

Broadcom Increases Dividend

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

Hedge Funds Weigh In On Broadcom

A number of hedge funds and other institutional investors have recently modified their holdings of AVGO. Arthur M. Cohen & Associates LLC boosted its stake in Broadcom by 0.6% during the 3rd quarter. Arthur M. Cohen & Associates LLC now owns 4,781 shares of the semiconductor manufacturer’s stock valued at $1,577,000 after purchasing an additional 30 shares during the last quarter. Jackson Hole Capital Partners LLC grew its holdings in shares of Broadcom by 1.4% in the third quarter. Jackson Hole Capital Partners LLC now owns 2,170 shares of the semiconductor manufacturer’s stock valued at $716,000 after purchasing an additional 30 shares in the last quarter. Private Wealth Partners LLC raised its stake in Broadcom by 0.7% during the third quarter. Private Wealth Partners LLC now owns 4,273 shares of the semiconductor manufacturer’s stock valued at $1,410,000 after purchasing an additional 30 shares in the last quarter. Planning Alternatives Ltd. ADV lifted its position in Broadcom by 1.4% during the third quarter. Planning Alternatives Ltd. ADV now owns 2,168 shares of the semiconductor manufacturer’s stock valued at $715,000 after purchasing an additional 30 shares during the last quarter. Finally, Bell Investment Advisors Inc grew its stake in shares of Broadcom by 1.9% in the 3rd quarter. Bell Investment Advisors Inc now owns 1,638 shares of the semiconductor manufacturer’s stock worth $540,000 after buying an additional 30 shares in the last quarter. 76.43% of the stock is currently owned by hedge funds and other institutional investors.

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.