Broadcom (NASDAQ:AVGO) Shares Down 3.8% - Here's What Happened

Key Points

• Broadcom's stock price fell by 3.8% to $346.17 during mid-day trading on Wednesday, despite an increase in trading volume by 15% above the average.
• Research analysts have shown confidence in Broadcom, with multiple upgrades, resulting in an average rating of "Buy" and a consensus price target of $356.48.
• The company recently declared a quarterly dividend of $0.59 per share, reflecting a dividend yield of 0.7% and a payout ratio of 60.20%.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report)'s stock price traded down 3.8% during mid-day trading on Wednesday . The company traded as low as $341.50 and last traded at $346.17. 30,289,511 shares were traded during mid-day trading, an increase of 15% from the average session volume of 26,301,029 shares. The stock had previously closed at $360.00.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on the company. Hsbc Global Res raised Broadcom from a "hold" rating to a "strong-buy" rating in a report on Tuesday, June 24th. Citigroup boosted their target price on Broadcom from $315.00 to $350.00 and gave the stock a "buy" rating in a report on Friday, September 5th. Wells Fargo & Company boosted their target price on Broadcom from $255.00 to $345.00 and gave the stock an "equal weight" rating in a report on Friday, September 5th. The Goldman Sachs Group reissued a "buy" rating and issued a $340.00 target price on shares of Broadcom in a report on Wednesday, August 13th. Finally, Cantor Fitzgerald reissued an "overweight" rating and issued a $300.00 target price on shares of Broadcom in a report on Friday, June 6th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and one has given a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Buy" and a consensus price target of $356.48.

Broadcom Stock Performance

The firm has a fifty day simple moving average of $303.88 and a 200-day simple moving average of $244.46. The stock has a market cap of $1.63 trillion, a price-to-earnings ratio of 88.31, a P/E/G ratio of 2.01 and a beta of 1.16. The company has a current ratio of 1.50, a quick ratio of 1.37 and a debt-to-equity ratio of 0.86.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its earnings results on Thursday, September 4th. The semiconductor manufacturer reported $1.69 EPS for the quarter, beating the consensus estimate of $1.66 by $0.03. The company 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 business's revenue for the quarter was up 22.0% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.24 EPS. Broadcom has set its Q4 2025 guidance at EPS. Analysts forecast that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Dividend Announcement

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 given a $0.59 dividend. The ex-dividend date is Monday, September 22nd. This represents a $2.36 dividend on an annualized basis and a dividend yield of 0.7%. Broadcom's dividend payout ratio is currently 60.20%.

Insiders Place Their Bets

In related news, Director Henry Samueli sold 473,898 shares of the company's stock in a transaction on Wednesday, June 25th. The shares were sold at an average price of $265.33, for a total value of $125,739,356.34. Following the completion of the sale, the director owned 38,188,575 shares in the company, valued at $10,132,574,604.75. This represents a 1.23% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, CEO Hock E. Tan sold 148,154 shares of the company's stock in a transaction on 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 sale, the chief executive officer owned 825,998 shares of the company's stock, valued at approximately $278,088,746.66. This represents a 15.21% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have purchased 3,550 shares of company stock worth $1,227,869 and have sold 793,802 shares worth $220,478,166. Corporate insiders own 2.00% of the company's stock.

Hedge Funds Weigh In On Broadcom

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its stake in shares of Broadcom by 1.3% during the 2nd quarter. Vanguard Group Inc. now owns 483,442,939 shares of the semiconductor manufacturer's stock worth $133,261,046,000 after buying an additional 6,222,802 shares during the last quarter. State Street Corp boosted its stake in shares of Broadcom by 0.5% during the 2nd quarter. State Street Corp now owns 185,276,987 shares of the semiconductor manufacturer's stock worth $51,071,601,000 after buying an additional 873,963 shares during the last quarter. Geode Capital Management LLC boosted its stake in shares of Broadcom by 2.1% during the 2nd quarter. Geode Capital Management LLC now owns 108,610,718 shares of the semiconductor manufacturer's stock worth $29,827,649,000 after buying an additional 2,226,585 shares during the last quarter. Norges Bank acquired a new position in shares of Broadcom during the 2nd quarter worth about $18,579,549,000. Finally, Price T Rowe Associates Inc. MD boosted its stake in shares of Broadcom by 37.8% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 65,509,579 shares of the semiconductor manufacturer's stock worth $10,968,270,000 after buying an additional 17,985,046 shares during the last quarter. 76.43% of the stock is owned by institutional investors and hedge funds.

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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