Broadcom (NASDAQ:AVGO) Shares Down 1.6% - Should You Sell?

Key Points

• Broadcom's stock price decreased by 1.6%, closing at $338.79 after hitting a low of $337.94.
• Analysts have set a consensus target price of $356.48, with several firms upgrading their ratings and price targets significantly.
• The company announced a quarterly dividend of $0.59, set to be paid on September 30th, representing an annual yield of 0.7%.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report)'s stock price traded down 1.6% during trading on Monday . The stock traded as low as $337.94 and last traded at $338.79. 27,789,280 shares traded hands during mid-day trading, an increase of 5% from the average session volume of 26,464,912 shares. The stock had previously closed at $344.35.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on the stock. Sanford C. Bernstein raised their price target on shares of Broadcom from $295.00 to $400.00 and gave the company an "outperform" rating in a research note on Friday, September 5th. TD Cowen raised their price objective on shares of Broadcom from $355.00 to $370.00 and gave the company a "buy" rating in a research note on Friday, September 5th. Evercore ISI reiterated an "outperform" rating and set a $342.00 price objective (up previously from $304.00) on shares of Broadcom in a research note on Thursday, September 4th. Bank of America raised their price objective on shares of Broadcom from $300.00 to $400.00 and gave the company a "buy" rating in a research note on Friday, September 5th. Finally, Citigroup raised their price objective on shares of Broadcom from $315.00 to $350.00 and gave the company a "buy" rating in a research note on Friday, September 5th. Three analysts have rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and one has given a Hold rating to the stock. According to MarketBeat, Broadcom currently has a consensus rating of "Buy" and a consensus target price of $356.48.

Broadcom Stock Down 1.8%

The stock has a market capitalization of $1.60 trillion, a P/E ratio of 86.43, a PEG ratio of 1.91 and a beta of 1.16. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.50 and a quick ratio of 1.37. The stock's fifty day moving average is $308.05 and its two-hundred day moving average is $248.20.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its earnings results on Thursday, September 4th. The semiconductor manufacturer reported $1.69 earnings per share for the quarter, topping analysts' consensus estimates of $1.66 by $0.03. The firm had revenue of $15.95 billion during the quarter, compared to analysts' expectations of $15.82 billion. Broadcom had a net margin of 31.59% and a return on equity of 36.60%. The firm's revenue for the quarter was up 22.0% compared to the same quarter last year. During the same period last year, the firm posted $1.24 earnings per share. Broadcom has set its Q4 2025 guidance at EPS. As a group, research analysts predict that Broadcom Inc. will post 5.38 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Monday, September 22nd will be paid a $0.59 dividend. The ex-dividend date of this dividend is Monday, September 22nd. This represents a $2.36 dividend on an annualized basis and a yield of 0.7%. Broadcom's dividend payout ratio (DPR) is currently 60.20%.

Insider Transactions at Broadcom

In other Broadcom news, CFO Kirsten M. Spears sold 36,350 shares of Broadcom stock in a transaction on Tuesday, June 24th. The shares were sold at an average price of $261.27, for a total transaction of $9,497,164.50. Following the completion of the sale, the chief financial officer owned 325,587 shares of the company's stock, valued at $85,066,115.49. This trade represents a 10.04% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Charlie B. Kawwas sold 3,893 shares of Broadcom stock in a transaction on Wednesday, September 17th. The shares were sold at an average price of $347.82, for a total transaction of $1,354,063.26. Following the sale, the insider directly owned 25,295 shares of the company's stock, valued at $8,798,106.90. This trade represents a 13.34% decrease in their position. The disclosure for this sale can be found here. In the last ninety days, insiders have acquired 3,550 shares of company stock worth $1,227,869 and have sold 790,522 shares worth $224,295,124. Company insiders own 2.00% of the company's stock.

Institutional Investors Weigh In On Broadcom

A number of institutional investors have recently modified their holdings of AVGO. PARUS FINANCE UK Ltd lifted its stake in shares of Broadcom by 175.3% in the 1st quarter. PARUS FINANCE UK Ltd now owns 100,578 shares of the semiconductor manufacturer's stock valued at $16,840,000 after purchasing an additional 64,038 shares during the last quarter. Geneos Wealth Management Inc. increased its holdings 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 period. Keener Financial Planning LLC increased its holdings in shares of Broadcom by 34.8% during the 1st quarter. Keener Financial Planning LLC now owns 890 shares of the semiconductor manufacturer's stock worth $149,000 after purchasing an additional 230 shares during the period. Diversify Wealth Management LLC increased its stake in Broadcom by 5.6% in the first quarter. Diversify Wealth Management LLC now owns 38,016 shares of the semiconductor manufacturer's stock valued at $6,365,000 after acquiring an additional 2,016 shares during the period. Finally, Acorns Advisers LLC raised its position in Broadcom by 24.3% in the first quarter. Acorns Advisers LLC now owns 4,184 shares of the semiconductor manufacturer's stock worth $701,000 after purchasing an additional 818 shares in the last quarter. Institutional investors and hedge funds own 76.43% of the company's stock.

About Broadcom

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.

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