Broadcom (NASDAQ:AVGO) Stock Price Down 2.9% – Here’s Why

Broadcom Inc. (NASDAQ:AVGO)’s share price dropped 2.9% during mid-day trading on Tuesday . The stock traded as low as $351.00 and last traded at $351.94. Approximately 23,120,513 shares traded hands during mid-day trading, a decline of 10% from the average daily volume of 25,615,654 shares. The stock had previously closed at $362.55.

Wall Street Analysts Forecast Growth

AVGO has been the subject of several research analyst reports. UBS Group set a $415.00 target price on shares of Broadcom and gave the company a “buy” rating in a report on Tuesday, October 14th. JPMorgan Chase & Co. upped their target price on shares of Broadcom from $325.00 to $400.00 and gave the company an “overweight” rating in a report on Friday, September 5th. Evercore ISI upped their target price on shares of Broadcom from $342.00 to $403.00 and gave the company an “outperform” rating in a report on Wednesday, October 15th. Piper Sandler upped their price target on shares of Broadcom from $315.00 to $375.00 and gave the company an “overweight” rating in a research report on Friday, September 5th. Finally, Weiss Ratings upgraded shares of Broadcom from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday, October 24th. Three equities research analysts have rated the stock with a Strong Buy rating, thirty have assigned a Buy rating and one has assigned a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Buy” and an average target price of $372.52.

Broadcom Stock Performance

The company has a market cap of $1.66 trillion, a PE ratio of 89.78, a P/E/G ratio of 2.08 and a beta of 1.19. 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 stock’s 50-day simple moving average is $340.67 and its 200 day simple moving average is $285.47.

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

Broadcom Dividend Announcement

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

Insider Activity at Broadcom

In other Broadcom news, 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 transaction of $124,620,194.27. Following the completion of the transaction, the director owned 37,722,534 shares in the company, valued at approximately $12,746,821,463.94. This represents a 0.97% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Hock E. Tan sold 148,154 shares of the stock in a transaction dated Wednesday, September 10th. The shares were sold at an average price of $336.67, for a total transaction of $49,879,007.18. Following the completion of the transaction, the chief executive officer owned 825,998 shares of the company’s stock, valued at $278,088,746.66. This represents a 15.21% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have bought 3,550 shares of company stock worth $1,227,869 and have sold 665,271 shares worth $225,464,248. Corporate insiders own 2.00% of the company’s stock.

Hedge Funds Weigh In On Broadcom

Large investors have recently made changes to their positions in the stock. Assetmark Inc. increased its position in shares of Broadcom by 2.4% during the 2nd quarter. Assetmark Inc. now owns 1,703,487 shares of the semiconductor manufacturer’s stock worth $469,566,000 after purchasing an additional 39,466 shares during the last quarter. PARUS FINANCE UK Ltd increased its position in shares of Broadcom by 175.3% during the 1st quarter. PARUS FINANCE UK Ltd now owns 100,578 shares of the semiconductor manufacturer’s stock worth $16,840,000 after purchasing an additional 64,038 shares during the last quarter. Geneos Wealth Management Inc. increased its position in shares of Broadcom by 27.9% during the 1st quarter. Geneos Wealth Management Inc. now owns 64,130 shares of the semiconductor manufacturer’s stock worth $10,737,000 after purchasing an additional 13,978 shares during the last quarter. Ethic Inc. increased its position in shares of Broadcom by 1.6% during the 2nd quarter. Ethic Inc. now owns 329,339 shares of the semiconductor manufacturer’s stock worth $88,708,000 after purchasing an additional 5,249 shares during the last quarter. Finally, Asio Capital LLC increased its position in shares of Broadcom by 2.0% during the 2nd quarter. Asio Capital LLC now owns 54,459 shares of the semiconductor manufacturer’s stock worth $15,012,000 after purchasing an additional 1,089 shares during the last quarter. Hedge funds and other institutional investors own 76.43% of the company’s stock.

Broadcom Company Profile

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.