Broadcom Inc. (NASDAQ:AVGO – Get Free Report) dropped 4.6% on Wednesday . The company traded as low as $357.61 and last traded at $362.48. 34,805,793 shares were traded during trading, an increase of 38% from the average session volume of 25,180,193 shares. The stock had previously closed at $380.00.
Broadcom News Roundup
Here are the key news stories impacting Broadcom this week:
- Positive Sentiment: AI growth remains a major long-term opportunity. Broadcom supplies custom AI accelerators and networking products, and expanding enterprise AI spending could support a prolonged infrastructure cycle. The company recently reported quarterly revenue growth of 47.9% and exceeded both revenue and earnings expectations. Broadcom AI infrastructure article
- Positive Sentiment: Analyst support remains firm. TD Cowen reiterated its Buy rating and maintained a $500 price target, implying substantial upside from recent trading levels. Broadcom is also viewed as a key infrastructure supplier to companies scaling AI workloads, including Anthropic and Alphabet. Broadcom analyst price target update
- Neutral Sentiment: Anthropic’s reported growth adds potential ecosystem demand. Anthropic reportedly reached a $65 billion annualized revenue run rate and is expanding its use of cloud capacity and custom silicon. However, the article offers indirect exposure rather than a new Broadcom contract or financial guidance. Anthropic pre-IPO and Broadcom ecosystem article
- Negative Sentiment: Marvell’s new Google partnership is the immediate catalyst. Marvell announced an agreement to help Google develop custom AI chips and granted Alphabet a warrant or option to acquire up to approximately $12.2 billion of Marvell shares. Because Broadcom has been viewed as Google’s primary custom-chip partner, investors fear the deal could reduce Broadcom’s future share of Google’s AI silicon opportunity. Marvell Google AI chip deal article
- Negative Sentiment: Additional concerns are weighing on sentiment. Reports cite persistent questions about VMware-related security issues, the availability of financing for AI infrastructure, potential margin pressure, and Broadcom’s elevated valuation. Hedge-fund selling and comparisons with faster-growing AI infrastructure peers are adding to the cautious tone. Broadcom Marvell VMware and financing concerns article
Analyst Upgrades and Downgrades
Several analysts have issued reports on the company. Bank of America upped their target price on Broadcom from $450.00 to $530.00 and gave the stock a “buy” rating in a research note on Thursday, June 4th. Wall Street Zen lowered shares of Broadcom from a “strong-buy” rating to a “buy” rating in a report on Saturday, July 18th. Zacks Research cut shares of Broadcom from a “strong-buy” rating to a “hold” rating in a research note on Thursday, May 21st. Mizuho increased their target price on shares of Broadcom from $480.00 to $530.00 and gave the company an “outperform” rating in a report on Thursday, June 4th. Finally, Dbs Bank upgraded shares of Broadcom to a “moderate buy” rating in a research report on Thursday, June 18th. Twenty-eight investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $493.24.
Broadcom Stock Down 4.6%
The company’s fifty day simple moving average is $389.46 and its 200 day simple moving average is $374.39. The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71. The firm has a market capitalization of $1.72 trillion, a P/E ratio of 60.41, a price-to-earnings-growth ratio of 0.75 and a beta of 1.45.
Broadcom (NASDAQ:AVGO – Get Free Report) last announced its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share 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 firm had revenue of $22.19 billion for the quarter, compared to analyst estimates of $22.13 billion. During the same quarter in the previous year, the firm posted $1.58 EPS. The company’s revenue for the quarter was up 47.9% compared to the same quarter last year. Research analysts expect that Broadcom Inc. will post 10.24 EPS for the current year.
Broadcom Announces Dividend
The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd were issued a $0.65 dividend. The ex-dividend date was Monday, June 22nd. This represents a $2.60 annualized dividend and a yield of 0.7%. Broadcom’s dividend payout ratio (DPR) is 43.33%.
Insider Transactions at Broadcom
In other Broadcom news, Director Justine Page sold 1,602 shares of the company’s stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $373.86, for a total transaction of $598,923.72. Following the transaction, the director owned 17,426 shares in the company, valued at approximately $6,514,884.36. This represents a 8.42% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Gayla J. Delly sold 1,890 shares of the stock in a transaction that occurred on Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total value of $728,368.20. Following the completion of the transaction, the director directly owned 31,326 shares of the company’s stock, valued at $12,072,413.88. This represents a 5.69% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 61,644 shares of company stock valued at $24,016,214. Insiders own 1.90% of the company’s stock.
Hedge Funds Weigh In On Broadcom
Institutional investors and hedge funds have recently added to or reduced their stakes in the company. ROSS JOHNSON & Associates LLC increased its stake in shares of Broadcom by 1,320.0% in the 4th quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer’s stock worth $25,000 after acquiring an additional 66 shares in the last quarter. Networth Advisors LLC increased its stake in shares of Broadcom by 546.2% during the first quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer’s stock valued at $26,000 after purchasing an additional 71 shares in the last quarter. SWAN Capital LLC lifted its holdings in shares of Broadcom by 261.9% during the fourth quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer’s stock valued at $26,000 after purchasing an additional 55 shares during the last quarter. Nvest Wealth Strategies Inc. purchased a new position in shares of Broadcom during the fourth quarter valued at approximately $33,000. Finally, Family CFO Inc bought a new stake in shares of Broadcom in the 4th quarter worth approximately $35,000. 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.
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