Broadcom (NASDAQ:AVGO) Stock Price Down 3.5% - Time to Sell?

Key Points

• Broadcom shares fell by 3.5% to $344.13, with trading volume decreasing by 16% compared to average daily levels.
• Analysts have set a consensus price target for Broadcom at $370.07, with a majority rating the stock as a Buy or Strong Buy.
• Broadcom recently declared a $0.59 quarterly dividend, reflecting a 0.7% yield, while also reporting a net margin of 31.59% and year-over-year revenue growth of 22.0%.

Shares of Broadcom Inc. (NASDAQ:AVGO - Get Free Report) dropped 3.5% during mid-day trading on Tuesday . The stock traded as low as $339.65 and last traded at $344.13. Approximately 21,893,956 shares traded hands during trading, a decline of 16% from the average daily volume of 26,085,656 shares. The stock had previously closed at $356.70.

Analysts Set New Price Targets

Several brokerages have recently issued reports on AVGO. Wells Fargo & Company lifted their price objective on shares of Broadcom from $255.00 to $345.00 and gave the stock an "equal weight" rating in a research note on Friday, September 5th. Evercore ISI reaffirmed an "outperform" rating and set a $342.00 price objective (up from $304.00) on shares of Broadcom in a research report on Thursday, September 4th. TD Cowen increased their price objective on Broadcom from $355.00 to $370.00 and gave the stock a "buy" rating in a report on Friday, September 5th. Benchmark increased their price objective on Broadcom from $315.00 to $385.00 and gave the company a "buy" rating in a report on Friday, September 5th. Finally, Bank of America raised their price target on Broadcom from $300.00 to $400.00 and gave the company a "buy" rating in a research report on Friday, September 5th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the company has an average rating of "Buy" and a consensus price target of $370.07.

Broadcom Stock Performance

The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.37 and a current ratio of 1.50. The stock has a 50-day moving average of $323.82 and a 200-day moving average of $264.90. The firm has a market cap of $1.63 trillion, a price-to-earnings ratio of 87.79, a price-to-earnings-growth ratio of 1.80 and a beta of 1.20.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings data 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 firm had revenue of $15.95 billion for the quarter, compared to the consensus estimate of $15.82 billion. Broadcom had a net margin of 31.59% and a return on equity of 36.60%. The company's quarterly revenue was up 22.0% on a year-over-year basis. During the same period in the previous year, the company earned $1.24 earnings per share. Broadcom has set its Q4 2025 guidance at EPS. As a group, analysts anticipate that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 30th. Shareholders of record on Monday, September 22nd were paid a $0.59 dividend. This represents a $2.36 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend was Monday, September 22nd. Broadcom's payout ratio is 60.20%.

Insider Activity

In related news, insider Mark David Brazeal sold 16,558 shares of the firm's stock in a transaction that occurred on Wednesday, September 17th. The shares were sold at an average price of $347.61, for a total value of $5,755,726.38. Following the completion of the transaction, the insider directly owned 329,302 shares of the company's stock, valued at approximately $114,468,668.22. This trade represents a 4.79% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Hock E. Tan sold 100,000 shares of the firm's stock in a transaction on Tuesday, September 23rd. The shares were sold at an average price of $339.58, for a total transaction of $33,958,000.00. Following the completion of the transaction, the chief executive officer directly owned 725,638 shares of the company's stock, valued at approximately $246,412,152.04. The trade was a 12.11% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders purchased 3,550 shares of company stock worth $1,227,869 and sold 664,471 shares worth $225,184,128. Company insiders own 2.00% of the company's stock.

Institutional Investors Weigh In On Broadcom

A number of hedge funds have recently made changes to their positions in the business. Brighton Jones LLC increased its holdings in shares of Broadcom by 21.8% during the fourth quarter. Brighton Jones LLC now owns 29,683 shares of the semiconductor manufacturer's stock valued at $6,882,000 after acquiring an additional 5,322 shares in the last quarter. Revolve Wealth Partners LLC grew its stake in shares of Broadcom by 10.4% during the 4th quarter. Revolve Wealth Partners LLC now owns 7,997 shares of the semiconductor manufacturer's stock valued at $1,854,000 after purchasing an additional 756 shares during the period. GAMMA Investing LLC grew its position in shares of Broadcom by 9.2% during the 1st quarter. GAMMA Investing LLC now owns 103,184 shares of the semiconductor manufacturer's stock valued at $17,276,000 after acquiring an additional 8,672 shares during the period. Sound Income Strategies LLC grew its holdings in Broadcom by 11.2% during the first quarter. Sound Income Strategies LLC now owns 1,641 shares of the semiconductor manufacturer's stock valued at $275,000 after purchasing an additional 165 shares during the period. Finally, Exchange Traded Concepts LLC boosted its position in shares of Broadcom by 9.2% in the first quarter. Exchange Traded Concepts LLC now owns 38,491 shares of the semiconductor manufacturer's stock worth $6,445,000 after purchasing an additional 3,254 shares during the period. 76.43% of the stock is currently owned by institutional investors.

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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