Broadcom (NASDAQ:AVGO) Shares Down 2.2% – Time to Sell?

Broadcom Inc. (NASDAQ:AVGO) shares traded down 2.2% during trading on Wednesday . The stock traded as low as $368.03 and last traded at $369.34. Approximately 23,245,293 shares were traded during trading, a decline of 12% from the average daily volume of 26,483,795 shares. The stock had previously closed at $377.75.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: UBS reaffirmed its Buy rating and $485 price target, citing strong demand for Broadcom’s AI ASICs and growth tied to OpenAI and Anthropic. UBS Reaffirms Buy Rating on Broadcom (AVGO) Amid AI ASIC Demand and OpenAI, Anthropic Growth
• Positive Sentiment: Jefferies reiterated a Buy rating with a $550 target, and Erste Group lifted earnings estimates, reinforcing the view that Broadcom’s AI/custom silicon business is driving stronger profit expectations. Analyst updates Broadcom (AVGO) stock price target
• Positive Sentiment: Multiple articles highlighted Broadcom’s dominance in custom AI chips and framed it as one of the best-positioned names in the AI semiconductor trade, which is helping sentiment around the stock. Broadcom vs Nvidia: The $100B AI Race and One Winner
• Neutral Sentiment: Broadcom remains a key beneficiary of the broader semiconductor and AI rally, with sector momentum supporting investor interest even as some headlines focus on peers like Micron and Marvell. Semiconductor ETFs to Buy as Micron Leads $2T AI-Led Chip Market Rally
• Negative Sentiment: Recent insider selling and reports that three large insider sales occurred over the last two weeks have added caution, contributing to the stock’s weak near-term tone. Monster insider trading alert for Broadcom (AVGO) stock
• Negative Sentiment: Broadcom’s recent sharp pullback has left some investors focused on whether the stock is overextended, with articles noting it has fallen meaningfully from its highs and sparking debate over whether to buy the dip or sell. Broadcom’s Stock Has Slumped Over 20 Percent From Its Highs. These Experts Say They Would Buy the Dip

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on AVGO shares. Erste Group Bank raised shares of Broadcom from a “hold” rating to a “buy” rating in a report on Friday, June 5th. Susquehanna restated a “positive” rating and issued a $490.00 price objective (up from $450.00) on shares of Broadcom in a research report on Thursday, May 28th. Rosenblatt Securities reissued a “buy” rating and set a $500.00 target price on shares of Broadcom in a research note on Thursday, June 4th. Jefferies Financial Group set a $550.00 price target on shares of Broadcom and gave the company a “buy” rating in a research note on Thursday, June 4th. Finally, Dbs Bank upgraded Broadcom to a “moderate buy” rating in a report on Thursday, June 18th. One equities 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 data from MarketBeat, Broadcom currently has an average rating of “Moderate Buy” and an average price target of $493.24.

Broadcom Stock Performance

The firm has a 50 day simple moving average of $410.61 and a 200-day simple moving average of $362.60. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 2.01. The company has a market cap of $1.76 trillion, a price-to-earnings ratio of 61.56, a PEG ratio of 0.65 and a beta of 1.41.

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

Broadcom Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 22nd were issued a $0.65 dividend. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. The ex-dividend date was Monday, June 22nd. Broadcom’s payout ratio is currently 43.33%.

Insider Activity at Broadcom

In other Broadcom news, Director Harry L. You purchased 1,000 shares of Broadcom stock in a transaction dated Thursday, June 11th. The shares were acquired at an average price of $373.57 per share, with a total value of $373,570.00. Following the completion of the transaction, the director owned 38,466 shares of the company’s stock, valued at $14,369,743.62. This trade represents a 2.67% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider S. Ram Velaga sold 8,000 shares of the firm’s stock in a transaction that occurred on Friday, April 10th. The shares were sold at an average price of $370.52, for a total transaction of $2,964,160.00. Following the completion of the transaction, the insider directly owned 57,932 shares of the company’s stock, valued at $21,464,964.64. This represents a 12.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders sold 59,385 shares of company stock valued at $21,301,057. 1.90% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Brown Brothers Harriman & Co. increased its position in Broadcom by 10.7% during the third quarter. Brown Brothers Harriman & Co. now owns 77,411 shares of the semiconductor manufacturer’s stock worth $25,539,000 after acquiring an additional 7,499 shares during the period. Sovran Advisors LLC grew its position in Broadcom by 121.3% in the 4th quarter. Sovran Advisors LLC now owns 30,631 shares of the semiconductor manufacturer’s stock worth $10,507,000 after purchasing an additional 16,789 shares during the last quarter. Thurston Springer Miller Herd & Titak Inc. increased its holdings in shares of Broadcom by 406.1% during the 4th quarter. Thurston Springer Miller Herd & Titak Inc. now owns 11,994 shares of the semiconductor manufacturer’s stock worth $4,151,000 after purchasing an additional 9,624 shares during the period. Aspiriant LLC raised its holdings in Broadcom by 18.5% in the 4th quarter. Aspiriant LLC now owns 12,016 shares of the semiconductor manufacturer’s stock valued at $4,158,000 after acquiring an additional 1,872 shares in the last quarter. Finally, World Investment Advisors raised its holdings in Broadcom by 16.1% in the 4th quarter. World Investment Advisors now owns 177,710 shares of the semiconductor manufacturer’s stock valued at $61,505,000 after acquiring an additional 24,703 shares in the last quarter. Hedge funds and other 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.