Broadcom (NASDAQ:AVGO) Stock Price Down 2.9% - Here's Why

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 2.9% during mid-day trading on Wednesday . The company traded as low as $350.25 and last traded at $349.67. Approximately 3,003,220 shares traded hands during mid-day trading, a decline of 89% from the average daily volume of 26,141,279 shares. The stock had previously closed at $360.00.

Analysts Set New Price Targets

A number of research analysts have weighed in on AVGO shares. 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. Argus lifted their price target on Broadcom from $285.00 to $375.00 and gave the company a "buy" rating in a report on Monday, September 8th. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $300.00 price target on shares of Broadcom in a report on Friday, June 6th. Truist Financial boosted their price target on shares of Broadcom from $295.00 to $365.00 and gave the company a "buy" rating in a report on Friday, September 5th. Finally, Piper Sandler upped their price objective on shares of Broadcom from $315.00 to $375.00 and gave the stock an "overweight" rating in a report on Friday, September 5th. Three analysts have rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and one has issued a Hold rating to the company's stock. According to MarketBeat.com, Broadcom presently has an average rating of "Buy" and a consensus target price of $356.48.

Broadcom Price Performance

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 company's 50 day moving average price is $303.88 and its 200 day moving average price is $244.46. The firm has a market capitalization of $1.63 trillion, a P/E ratio of 88.19, a PEG ratio of 2.01 and a beta of 1.16.

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

Broadcom Announces Dividend

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

Insider Buying and Selling at Broadcom

In related news, Director Harry L. You bought 500 shares of Broadcom stock in a transaction that occurred on Wednesday, September 10th. The stock was acquired at an average price of $363.38 per share, with a total value of $181,690.00. Following the acquisition, the director owned 35,602 shares of the company's stock, valued at approximately $12,937,054.76. This represents a 1.42% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Gayla J. Delly sold 3,000 shares of Broadcom stock in a transaction dated Thursday, June 26th. The stock was sold at an average price of $265.13, for a total transaction of $795,390.00. Following the sale, the director directly owned 33,352 shares of the company's stock, valued at $8,842,615.76. The trade was a 8.25% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders acquired 3,550 shares of company stock valued at $1,227,869 and sold 793,802 shares valued at $220,478,166. Insiders own 2.00% of the company's stock.

Hedge Funds Weigh In On Broadcom

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Valeo Financial Advisors LLC increased its position in Broadcom by 9.2% during the 2nd quarter. Valeo Financial Advisors LLC now owns 66,268 shares of the semiconductor manufacturer's stock worth $18,487,000 after purchasing an additional 5,573 shares in the last quarter. WT Wealth Management acquired a new position in Broadcom during the second quarter worth $325,000. Cambridge Financial Group LLC raised its holdings in Broadcom by 5.3% during the second quarter. Cambridge Financial Group LLC now owns 1,801 shares of the semiconductor manufacturer's stock worth $497,000 after buying an additional 90 shares during the last quarter. NWF Advisory Services Inc. raised its position in Broadcom by 194.1% in the second quarter. NWF Advisory Services Inc. now owns 5,970 shares of the semiconductor manufacturer's stock worth $1,646,000 after acquiring an additional 3,940 shares during the period. Finally, SevenBridge Financial Group LLC raised its position in Broadcom by 21.8% in the second quarter. SevenBridge Financial Group LLC now owns 14,404 shares of the semiconductor manufacturer's stock worth $3,970,000 after acquiring an additional 2,577 shares during the period. 76.43% of the stock is currently owned by institutional investors and hedge funds.

Broadcom Company Profile

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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