Broadcom (NASDAQ:AVGO) Downgraded by Erste Group Bank to Hold

Key Points

• Erste Group Bank downgraded Broadcom from "buy" to "hold," but several major brokers raised targets or maintained bullish ratings (e.g., JPMorgan $500, Wells Fargo $430, Citi $475), leaving a consensus "Moderate Buy" with an average target of $435.30.
• Shares fell about 2% to $307.37 despite Broadcom beating estimates (EPS $2.05 vs $2.03; revenue $19.31B, +29.5% YoY); valuation remains high (P/E ~60) and notable insider selling occurred recently (373,049 shares in the last 90 days).

Broadcom (NASDAQ:AVGO - Get Free Report) 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.com reports.

Several other brokerages have also issued reports on AVGO. Wells Fargo & Company upgraded shares of Broadcom from an "equal weight" rating to an "overweight" rating and boosted their price objective for the company from $410.00 to $430.00 in a report on Thursday, January 15th. JPMorgan Chase & Co. lifted their price target on shares of Broadcom from $475.00 to $500.00 and gave the company an "overweight" rating in a research report on Thursday, March 5th. Citigroup boosted their price target on shares of Broadcom from $458.00 to $475.00 and gave the company a "buy" rating in a research note on Thursday, March 5th. KeyCorp reaffirmed an "overweight" rating and set a $500.00 price objective (up from $460.00) on shares of Broadcom in a research report on Friday, December 12th. Finally, Bank of America dropped their target price on shares of Broadcom from $500.00 to $450.00 and set a "buy" rating for the company in a report on Thursday, March 5th. One analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $435.30.

Broadcom Trading Down 2.0%

Shares of AVGO stock traded down $6.12 during trading on Thursday, hitting $307.37. 1,452,227 shares of the stock traded hands, compared to its average volume of 26,290,508. Broadcom has a 52-week low of $138.10 and a 52-week high of $414.61. The firm has a market capitalization of $1.46 trillion, a P/E ratio of 59.98, a price-to-earnings-growth ratio of 0.66 and a beta of 1.22. The firm's fifty day moving average price is $325.06 and its 200-day moving average price is $343.71. The company has a debt-to-equity ratio of 0.80, a current ratio of 1.90 and a quick ratio of 1.73.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.03 by $0.02. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.The company had revenue of $19.31 billion during the quarter, compared to analysts' expectations of $19.10 billion. During the same quarter last year, the firm earned $1.60 earnings per share. The firm's quarterly revenue was up 29.5% compared to the same quarter last year. As a group, research analysts forecast that Broadcom will post 5.38 earnings per share for the current fiscal year.

Insider Buying and Selling at Broadcom

In related news, CEO Hock E. Tan sold 70,000 shares of Broadcom stock in a transaction that occurred on Tuesday, January 6th. The shares were sold at an average price of $347.30, for a total value of $24,311,000.00. Following the completion of the transaction, the chief executive officer owned 132,836 shares in the company, valued at $46,133,942.80. The trade was a 34.51% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Kirsten M. Spears sold 36,292 shares of the business's 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 $11,671,507.20. Following the transaction, the chief financial officer owned 327,760 shares of the company's stock, valued at $105,407,616. This trade represents a 9.97% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 373,049 shares of company stock valued at $123,024,715. 1.90% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Broadcom

Several institutional investors have recently modified their holdings of the company. Baring Financial LLC increased its position in Broadcom by 2.2% during the fourth quarter. Baring Financial LLC now owns 1,359 shares of the semiconductor manufacturer's stock worth $470,000 after buying an additional 29 shares during the period. Five Oceans Advisors lifted its holdings in shares of Broadcom by 0.4% in the 4th quarter. Five Oceans Advisors now owns 8,191 shares of the semiconductor manufacturer's stock valued at $2,835,000 after buying an additional 29 shares during the period. Arthur M. Cohen & Associates LLC boosted its stake in shares of Broadcom by 0.6% in the third quarter. Arthur M. Cohen & Associates LLC now owns 4,781 shares of the semiconductor manufacturer's stock valued at $1,577,000 after buying an additional 30 shares in the last quarter. Jackson Hole Capital Partners LLC lifted its stake in shares of Broadcom by 1.4% in the third quarter. Jackson Hole Capital Partners LLC now owns 2,170 shares of the semiconductor manufacturer's stock valued at $716,000 after purchasing an additional 30 shares during the period. Finally, Private Wealth Partners LLC lifted its position in shares of Broadcom by 0.7% during the 3rd quarter. Private Wealth Partners LLC now owns 4,273 shares of the semiconductor manufacturer's stock valued at $1,410,000 after acquiring an additional 30 shares during the period. 76.43% of the stock is owned by hedge funds and other institutional investors.

Key Broadcom News

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.

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