Broadcom (NASDAQ:AVGO) Stock Price Down 3.8% After Insider Selling

Key Points

• Broadcom's stock fell by 2.9%, trading as low as $350.25, with a significantly decreased trading volume of about 3 million shares compared to its average of over 26 million.
• Several analysts have raised price targets for Broadcom, with new targets ranging from $300 to $375, and a consensus target price of $356.48.
• Broadcom recently announced a quarterly dividend of $0.59 per share, which will be paid on September 30, reflecting a yield of 0.7% and a payout ratio of 60.20%.

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

Specifically, Director Justine Page sold 800 shares of the stock in a transaction on Monday, September 15th. The stock was sold at an average price of $360.00, for a total transaction of $288,000.00. Following the completion of the sale, the director directly owned 22,982 shares of the company's stock, valued at $8,273,520. This trade represents a 3.36% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Hock E. Tan sold 148,154 shares of the stock in a transaction on Wednesday, September 10th. The stock was sold at an average price of $336.67, for a total value of $49,879,007.18. Following the sale, the chief executive officer directly owned 825,998 shares of the company's stock, valued at approximately $278,088,746.66. This represents a 15.21% decrease in their ownership of the stock. The disclosure for this sale can be found here.

Analysts Set New Price Targets

AVGO has been the subject of a number of recent analyst reports. Bank of America raised their target price on Broadcom from $300.00 to $400.00 and gave the company a "buy" rating in a report on Friday, September 5th. Barclays raised their target price on Broadcom from $265.00 to $400.00 and gave the company an "overweight" rating in a report on Friday, September 5th. Evercore ISI reissued an "outperform" rating and issued a $342.00 target price (up previously from $304.00) on shares of Broadcom in a report on Thursday, September 4th. Hsbc Global Res raised Broadcom from a "hold" rating to a "strong-buy" rating in a report on Tuesday, June 24th. Finally, Piper Sandler raised their target price on Broadcom from $315.00 to $375.00 and gave the company an "overweight" rating in a report on Friday, September 5th. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat.com, the stock has a consensus rating of "Buy" and a consensus target price of $356.48.

Broadcom Trading Down 0.1%

The stock has a market cap of $1.63 trillion, a PE ratio of 87.99, a PEG ratio of 1.91 and a beta of 1.16. The business has a 50-day moving average of $308.05 and a 200 day moving average of $247.33. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.37 and a current ratio of 1.50.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings data on Thursday, September 4th. The semiconductor manufacturer reported $1.69 EPS 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 return on equity of 36.60% and a net margin of 31.59%.The firm's quarterly revenue was up 22.0% compared to the same quarter last year. During the same quarter last year, the business posted $1.24 EPS. Broadcom has set its Q4 2025 guidance at EPS. Equities research analysts predict that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Announces Dividend

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

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in AVGO. Norges Bank purchased a new stake in Broadcom in the 2nd quarter valued at about $18,579,549,000. Nuveen LLC purchased a new stake in Broadcom in the 1st quarter valued at about $6,649,117,000. Price T Rowe Associates Inc. MD grew its holdings in Broadcom by 37.8% in the 1st 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 buying an additional 17,985,046 shares during the period. GAMMA Investing LLC grew its holdings in shares of Broadcom by 18,179.3% during the 1st quarter. GAMMA Investing LLC now owns 17,276,164 shares of the semiconductor manufacturer's stock worth $2,892,548,000 after purchasing an additional 17,181,652 shares during the period. Finally, Vanguard Group Inc. grew its holdings 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 purchasing an additional 6,222,802 shares during the period. Hedge funds and other 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.