Broadcom Inc. (NASDAQ:AVGO – Get Free Report)’s share price fell 10.4% during trading on Thursday. The stock traded as low as $290.12 and last traded at $291.53. Approximately 52,876,816 shares changed hands during mid-day trading, an increase of 113% from the average daily volume of 24,873,262 shares. The stock had previously closed at $325.48.
Key Headlines Impacting Broadcom
Here are the key news stories impacting Broadcom this week:
- Positive Sentiment: Broadcom reported $16.7 billion in AI semiconductor revenue last quarter, above its $16 billion target and more than triple the year-earlier level. Management expects AI revenue to rise further next quarter, supporting the growth outlook. Is Broadcom Stock a Buy Now?
- Positive Sentiment: Bank of America added AVGO to its “global defenders” list, a potentially supportive endorsement. Another analysis argued that the stock’s fall is out of step with its record AI growth, raising the possibility of a valuation-driven opportunity. BofA adds AVGO to global defenders list Broadcom Stock Could Be Approaching a Major Turning Point
- Negative Sentiment: The immediate pressure is a broader chip sell-off compounded by fears that AI regulation could limit investment or slow data-center projects. Reports also point to a Texas permit freeze as a potential constraint on AI infrastructure expansion, adding uncertainty around future demand. Broadcom Sinks as AI Regulation Fears Deepen Chip Rout Midterms and AI spending concerns
Wall Street Analyst Weigh In
Several equities research analysts recently weighed in on AVGO shares. Morgan Stanley reissued an “overweight” rating and issued a $505.00 price objective (up from $502.00) on shares of Broadcom in a report on Thursday, September 3rd. KeyCorp reaffirmed an “overweight” rating and set a $575.00 price objective on shares of Broadcom in a report on Thursday, September 3rd. DA Davidson raised shares of Broadcom from a “neutral” rating to a “buy” rating and upped their price objective for the company from $350.00 to $400.00 in a report on Tuesday, October 27th. Jefferies Financial Group assumed coverage on shares of Broadcom in a research report on Thursday, September 3rd. They set a “buy” rating and a $550.00 target price for the company. Finally, William Blair downgraded shares of Broadcom from an “outperform” rating to a “market perform” rating in a research note on Tuesday, October 27th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-nine have assigned a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $530.52.
Read Our Latest Report on AVGO
Broadcom Stock Performance
The company’s 50-day moving average price is $350.73 and its two-hundred day moving average price is $366.67. The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.29 and a current ratio of 2.50. The stock has a market cap of $1.39 trillion, a PE ratio of 37.23 and a beta of 1.49.
Broadcom (NASDAQ:AVGO – Get Free Report) last released its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share for the quarter, topping analysts’ consensus estimates of $3.22 by $0.10. Broadcom had a return on equity of 48.33% and a net margin of 42.94%. The company had revenue of $29.59 billion during the quarter, compared to the consensus estimate of $29.24 billion. During the same quarter in the previous year, the company posted $1.69 EPS. Broadcom’s quarterly revenue was up 85.5% compared to the same quarter last year. On average, equities research analysts forecast that Broadcom Inc. will post 10.37 EPS for the current year.
Broadcom Dividend Announcement
The business also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st were issued a dividend of $0.65 per share. The ex-dividend date was Monday, September 21st. This represents a $2.60 annualized dividend and a dividend yield of 0.9%. Broadcom’s dividend payout ratio (DPR) is presently 33.21%.
Institutional Investors Weigh In On Broadcom
Institutional investors have recently modified their holdings of the business. Yukon Wealth Management Inc. grew its holdings in Broadcom by 1.1% in the 1st quarter. Yukon Wealth Management Inc. now owns 2,501 shares of the semiconductor manufacturer’s stock valued at $774,000 after buying an additional 26 shares during the last quarter. NerdWallet Wealth Partners LLC increased its position in Broadcom by 2.6% in the 2nd quarter. NerdWallet Wealth Partners LLC now owns 1,057 shares of the semiconductor manufacturer’s stock worth $399,000 after buying an additional 27 shares during the period. Veery Capital LLC lifted its holdings in shares of Broadcom by 1.4% during the second quarter. Veery Capital LLC now owns 1,900 shares of the semiconductor manufacturer’s stock worth $718,000 after buying an additional 27 shares during the last quarter. Ridgeline Wealth Planning LLC lifted its holdings in shares of Broadcom by 2.1% during the second quarter. Ridgeline Wealth Planning LLC now owns 1,302 shares of the semiconductor manufacturer’s stock worth $492,000 after buying an additional 27 shares during the last quarter. Finally, Capital Planning LLC lifted its holdings in shares of Broadcom by 0.7% during the first quarter. Capital Planning LLC now owns 4,044 shares of the semiconductor manufacturer’s stock worth $1,252,000 after buying an additional 28 shares during the last quarter. 76.43% of the stock is owned by hedge funds and other institutional investors.
About Broadcom
Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops and supplies semiconductor and infrastructure software products. Its semiconductor solutions support data center, networking, broadband, wireless communications, storage, industrial and other electronic applications.
The company’s semiconductor portfolio includes networking and switching components, custom accelerators, connectivity and wireless devices, broadband equipment, optical products, storage controllers and related infrastructure technologies.
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