Broadcom (NASDAQ:AVGO) Shares Down 4.2% - What's Next?

Key Points

• Broadcom's shares decreased by 4.2% during mid-day trading on Friday, falling to $295.71, with trading volume down 77% from the average.
• Analysts maintain a generally positive outlook on Broadcom, with three analysts rating it as a Strong Buy and a consensus price target of $301.79.
• The company recently announced a quarterly dividend of $0.59, reflecting an annualized yield of 0.8%, with a dividend payout ratio of 88.39%.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report) shares fell 4.2% during mid-day trading on Friday . The stock traded as low as $295.51 and last traded at $295.71. 5,802,369 shares traded hands during trading, a decline of 77% from the average session volume of 25,662,326 shares. The stock had previously closed at $308.65.

Analyst Ratings Changes

Several brokerages have recently issued reports on AVGO. Susquehanna upped their price objective on Broadcom from $280.00 to $300.00 and gave the stock a "positive" rating in a report on Friday, June 6th. Morgan Stanley set a $338.00 price objective on Broadcom and gave the stock an "overweight" rating in a report on Wednesday, July 30th. Citigroup upped their price objective on Broadcom from $285.00 to $315.00 and gave the stock a "buy" rating in a report on Monday, July 7th. UBS Group increased their price target on Broadcom from $290.00 to $345.00 and gave the company a "buy" rating in a report on Monday. Finally, Benchmark increased their price target on Broadcom from $255.00 to $315.00 and gave the company a "buy" rating in a report on Friday, June 6th. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-six have issued a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Buy" and an average price target of $301.79.

Broadcom Stock Performance

The company has a quick ratio of 0.98, a current ratio of 1.08 and a debt-to-equity ratio of 0.89. The business has a 50 day simple moving average of $286.79 and a two-hundred day simple moving average of $234.25. The firm has a market cap of $1.39 trillion, a PE ratio of 110.73, a price-to-earnings-growth ratio of 2.14 and a beta of 1.15.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its earnings results on Thursday, June 5th. The semiconductor manufacturer reported $1.58 earnings per share for the quarter, topping analysts' consensus estimates of $1.57 by $0.01. Broadcom had a return on equity of 35.49% and a net margin of 22.64%.The business had revenue of $15 billion for the quarter, compared to analyst estimates of $14.98 billion. During the same quarter last year, the firm posted $10.96 earnings per share. The business's revenue was up 20.2% compared to the same quarter last year. Broadcom has set its Q3 2025 guidance at EPS. As a group, equities research analysts forecast that Broadcom Inc. will post 5.38 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, June 30th. Shareholders of record on Friday, June 20th were paid a $0.59 dividend. The ex-dividend date was Friday, June 20th. This represents a $2.36 dividend on an annualized basis and a yield of 0.8%. Broadcom's dividend payout ratio (DPR) is presently 88.39%.

Insiders Place Their Bets

In other Broadcom news, Director Gayla J. Delly sold 3,000 shares of the stock in a transaction on Thursday, June 26th. The stock was sold at an average price of $265.13, for a total value of $795,390.00. Following the sale, the director owned 33,352 shares in the company, valued at $8,842,615.76. This trade represents a 8.25% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Kirsten M. Spears sold 36,350 shares of the stock in a transaction on Tuesday, June 24th. The stock was sold at an average price of $261.27, for a total value of $9,497,164.50. Following the transaction, the chief financial officer directly owned 325,587 shares in the company, valued at $85,066,115.49. The trade was a 10.04% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 830,516 shares of company stock valued at $217,286,457. Insiders own 2.00% of the company's stock.

Hedge Funds Weigh In On Broadcom

A number of hedge funds and other institutional investors have recently made changes to their positions in AVGO. Norges Bank bought a new position in shares of Broadcom during the 2nd quarter worth $18,579,549,000. Nuveen LLC bought a new stake in Broadcom during the first quarter valued at about $6,649,117,000. Price T Rowe Associates Inc. MD boosted its position in Broadcom by 37.8% during the first quarter. Price T Rowe Associates Inc. MD now owns 65,509,579 shares of the semiconductor manufacturer's stock valued at $10,968,270,000 after purchasing an additional 17,985,046 shares in the last quarter. GAMMA Investing LLC boosted its position in Broadcom by 18,179.3% during the first quarter. GAMMA Investing LLC now owns 17,276,164 shares of the semiconductor manufacturer's stock valued at $2,892,548,000 after purchasing an additional 17,181,652 shares in the last quarter. Finally, Vanguard Group Inc. boosted its position in Broadcom by 1.3% during the second quarter. Vanguard Group Inc. now owns 483,442,939 shares of the semiconductor manufacturer's stock valued at $133,261,046,000 after purchasing an additional 6,222,802 shares in the last quarter. Institutional investors 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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