Broadcom (NASDAQ:AVGO) Trading Down 2.1% – Here’s Why

Shares of Broadcom Inc. (NASDAQ:AVGO) fell 2.1% on Thursday . The company traded as low as $345.18 and last traded at $346.82. 28,402,782 shares changed hands during trading, an increase of 12% from the average session volume of 25,308,049 shares. The stock had previously closed at $354.42.

Analyst Ratings Changes

A number of research firms have recently commented on AVGO. JPMorgan Chase & Co. raised their target price on Broadcom from $325.00 to $400.00 and gave the company an “overweight” rating in a research note on Friday, September 5th. Arete Research raised shares of Broadcom to a “strong-buy” rating in a research report on Monday, July 28th. Rosenblatt Securities increased their price target on shares of Broadcom from $340.00 to $400.00 and gave the stock a “buy” rating in a research note on Friday, September 5th. Truist Financial boosted their price objective on shares of Broadcom from $295.00 to $365.00 and gave the stock a “buy” rating in a research note on Friday, September 5th. Finally, Weiss Ratings restated a “hold (c+)” rating on shares of Broadcom in a report on Wednesday. Three equities research analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Buy” and an average price target of $374.21.

Broadcom Price Performance

The firm has a 50-day moving average of $348.15 and a 200-day moving average of $299.89. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.37 and a current ratio of 1.50. The firm has a market capitalization of $1.61 trillion, a P/E ratio of 86.79, a PEG ratio of 1.19 and a beta of 1.19.

Broadcom (NASDAQ:AVGO) last posted its quarterly earnings results on Thursday, September 4th. The semiconductor manufacturer reported $1.69 earnings per share for the quarter, topping the consensus estimate of $1.66 by $0.03. The firm had revenue of $15.95 billion during the quarter, compared to analysts’ expectations of $15.82 billion. Broadcom had a return on equity of 36.60% and a net margin of 31.59%.The company’s revenue was up 22.0% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.24 earnings per share. Broadcom has set its Q4 2025 guidance at EPS. As a group, analysts predict that Broadcom Inc. will post 5.38 EPS for the current year.

Broadcom Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, September 30th. Stockholders of record on Monday, September 22nd were issued a dividend of $0.59 per share. This represents a $2.36 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend was Monday, September 22nd. Broadcom’s payout ratio is presently 60.20%.

Insider Buying and Selling at Broadcom

In other news, insider Charlie B. Kawwas sold 3,893 shares of the stock in a transaction on Wednesday, September 17th. The stock was sold at an average price of $347.82, for a total transaction of $1,354,063.26. Following the transaction, the insider directly owned 25,295 shares of the company’s stock, valued at $8,798,106.90. This represents a 13.34% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, Director Henry Samueli sold 368,797 shares of the company’s stock in a transaction on Wednesday, September 24th. The shares were sold at an average price of $337.91, for a total value of $124,620,194.27. Following the sale, the director owned 37,722,534 shares of the company’s stock, valued at approximately $12,746,821,463.94. This trade represents a 0.97% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders bought 3,550 shares of company stock worth $1,227,869 and sold 665,271 shares worth $225,483,192. 2.00% of the stock is currently owned by corporate insiders.

Institutional Trading of Broadcom

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in AVGO. Cheviot Value Management LLC purchased a new position in Broadcom during the first quarter valued at $25,000. Sawyer & Company Inc lifted its position in shares of Broadcom by 62.1% during the 2nd quarter. Sawyer & Company Inc now owns 94 shares of the semiconductor manufacturer’s stock valued at $26,000 after buying an additional 36 shares in the last quarter. Longfellow Investment Management Co. LLC bought a new position in shares of Broadcom during the 2nd quarter valued at approximately $27,000. Legend Financial Advisors Inc. bought a new stake in Broadcom during the 2nd quarter worth approximately $28,000. Finally, Teachers Insurance & Annuity Association of America purchased a new position in Broadcom during the second quarter valued at approximately $28,000. 76.43% of the stock is owned by hedge funds and other institutional investors.

About Broadcom

Broadcom Inc designs, develops, and supplies various semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor based devices and analog III-V based products worldwide. The company operates in two segments, Semiconductor Solutions and Infrastructure Software.