Erste Group Bank Downgrades Broadcom (NASDAQ:AVGO) to Hold

Broadcom (NASDAQ:AVGO) was downgraded by equities researchers at Erste Group Bank from a “buy” rating to a “hold” rating in a research report issued to clients and investors on Thursday, MarketBeat Ratings reports.

A number of other research firms have also issued reports on AVGO. Wall Street Zen raised Broadcom from a “hold” rating to a “buy” rating in a research note on Saturday, December 13th. The Goldman Sachs Group restated a “buy” rating and issued a $450.00 price objective on shares of Broadcom in a research report on Monday, January 5th. UBS Group set a $475.00 price target on shares of Broadcom and gave the stock a “buy” rating in a report on Monday, December 15th. Oppenheimer upped their price objective on shares of Broadcom from $435.00 to $450.00 and gave the company an “outperform” rating in a research note on Friday, December 12th. Finally, Weiss Ratings reaffirmed a “buy (b)” rating on shares of Broadcom in a research note on Monday, December 29th. One analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $435.30.

Broadcom Price Performance

NASDAQ AVGO traded down $6.12 during trading hours on Thursday, reaching $307.37. The company’s stock had a trading volume of 1,452,227 shares, compared to its average volume of 26,290,508. The stock has a market cap of $1.46 trillion, a PE ratio of 59.98, a PEG ratio of 0.66 and a beta of 1.22. Broadcom has a fifty-two week low of $138.10 and a fifty-two week high of $414.61. The company’s 50-day moving average is $325.06 and its two-hundred day moving average is $343.71. 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 announced its earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 analysts’ expectations of $19.10 billion. During the same quarter in the previous year, the business posted $1.60 earnings per share. The firm’s quarterly revenue was up 29.5% compared to the same quarter last year. Analysts forecast that Broadcom will post 5.38 EPS for the current year.

Insider Activity at Broadcom

In other news, CFO Kirsten M. Spears sold 36,292 shares of the business’s stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total transaction of $11,671,507.20. Following the completion of the sale, the chief financial officer owned 327,760 shares in the company, valued at approximately $105,407,616. The trade was a 9.97% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider S. Ram Velaga sold 38,841 shares of the stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total transaction of $12,491,265.60. Following the sale, the insider directly owned 96,147 shares of the company’s stock, valued at approximately $30,920,875.20. This trade represents a 28.77% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 373,049 shares of company stock valued at $123,024,715 over the last three months. Insiders own 1.90% of the company’s stock.

Hedge Funds Weigh In On Broadcom

A number of hedge funds have recently made changes to their positions in the business. J. Derek Lewis & Associates Inc. purchased a new stake in shares of Broadcom in the fourth quarter worth about $4,251,000. Purpose Unlimited Inc. purchased a new stake in shares of Broadcom during the 4th quarter valued at about $14,371,000. Painted Porch Advisors LLC raised its holdings in shares of Broadcom by 28.2% during the 4th quarter. Painted Porch Advisors LLC now owns 1,665 shares of the semiconductor manufacturer’s stock valued at $576,000 after buying an additional 366 shares during the period. Cornerstone Planning LLC acquired a new position in Broadcom during the 4th quarter worth approximately $7,049,000. Finally, AMG Asset Management Group Inc. purchased a new position in Broadcom in the 4th quarter worth approximately $833,000. Hedge funds and other institutional investors own 76.43% of the company’s stock.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Analysts see big upside — several sell?side notes and consensus models continue to point to substantial price targets (reported ~61% upside), supporting buy-side interest and providing conviction for momentum investors. Analysts See 61% Upside to Broadcom Inc. (AVGO)
• Positive Sentiment: Strong AI revenue and a large DoD contract keep fundamentals attractive — reports highlight 106% YoY AI semiconductor growth and a ~$970M five?year defense software deal, which underpin revenue visibility and strategic diversification. Broadcom (AVGO) Valuation Check After 106% AI Chip Growth And US$970 Million Defense Software Deal
• Positive Sentiment: Moat arguments remain intact — analysts/commentary reiterate Broadcom’s durable competitive advantages in custom AI silicon and software integrations, supporting longer?term earnings power even as the market digests near?term noise. Broadcom: The Moat Still Holds
• Positive Sentiment: Product & software expansion — Broadcom’s Symantec CBX launch signals cross?sell/up?sell potential in security software, adding recurring revenue levers beyond chips. Broadcom Inc. (AVGO) Unveils Symantec CBX for Enterprise-Grade Network Security
• Neutral Sentiment: Wall?Street positioning is bullish but may be overly optimistic — the average broker rating is “Buy”, which supports flows but can amplify volatility if guidance or margins disappoint. Is Broadcom Inc. (AVGO) a Buy as Wall Street Analysts Look Optimistic?
• Negative Sentiment: Geopolitical/supply?chain risk from Iran conflict — Barron’s and other outlets flagged market sell?offs in chip stocks as investors price potential supply disruptions, which can hit sentiment and multiples across the sector. Nvidia, Broadcom Drop as Chip Stocks Sell Off. Why War Is Hitting Them So Hard.
• Negative Sentiment: Insider selling draws scrutiny — a large founder/director sale (Henry Samueli) was reported, which can spook some investors even if motivated by personal liquidity rather than company prospects. What Henry Samueli’s Record Broadcom Sale Signals For AVGO Shareholders
• Negative Sentiment: Margin pressure — analysis shows sequential gross?margin contraction as AI lifts revenue mix; investors may penalize multiples if margins trend lower despite top?line strength. AVGO’s Gross Margin Contracts Sequentially: Is Growth Getting Harder?

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.