Broadcom (NASDAQ:AVGO) Stock Price Down 4.3% - Should You Sell?

Key Points

• Shares fell 4.3% to about $385 on the day with volume ~22.5M (≈12% below average), but Wall Street remains largely positive—consensus rating is Buy with an average price target of $383 and several firms raising targets (UBS $472, BofA $460).
• Broadcom reported a quarter that slightly beat EPS and revenue expectations, with revenue up 22% year‑over‑year, a 31.6% net margin and a market cap of $1.82 trillion, though valuation is rich at a P/E of 98.43.
• Insider activity shows notable selling — CEO Hock E. Tan sold 100,000 shares ($33,958,000) — while institutional ownership is high at 76.43%, with large position increases from Vanguard, State Street and others.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report) shares were down 4.3% during mid-day trading on Monday . The stock traded as low as $385.10 and last traded at $385.83. Approximately 22,462,205 shares were traded during mid-day trading, a decline of 12% from the average daily volume of 25,413,533 shares. The stock had previously closed at $402.96.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on AVGO shares. UBS Group reaffirmed a "buy" rating and issued a $472.00 price objective (up from $415.00) on shares of Broadcom in a report on Monday. Bank of America boosted their target price on shares of Broadcom from $400.00 to $460.00 and gave the company a "buy" rating in a research report on Monday. Mizuho set a $435.00 price target on shares of Broadcom and gave the stock an "outperform" rating in a research report on Tuesday, October 21st. The Goldman Sachs Group set a $435.00 price objective on shares of Broadcom and gave the stock a "buy" rating in a research note on Tuesday, November 25th. Finally, Sanford C. Bernstein boosted their price objective on shares of Broadcom from $295.00 to $400.00 and gave the company an "outperform" rating in a report on Friday, September 5th. Three investment analysts have rated the stock with a Strong Buy rating, thirty-one have assigned a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, Broadcom currently has an average rating of "Buy" and a consensus price target of $383.00.

Broadcom Price Performance

The company has a quick ratio of 1.37, a current ratio of 1.50 and a debt-to-equity ratio of 0.86. The stock has a market capitalization of $1.82 trillion, a price-to-earnings ratio of 98.43, a P/E/G ratio of 1.37 and a beta of 1.19. The business's 50 day simple moving average is $352.16 and its 200-day simple moving average is $307.31.

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 period in the previous year, the company earned $1.24 EPS. Broadcom has set its Q4 2025 guidance at EPS. On average, research analysts forecast that Broadcom Inc. will post 5.38 earnings per share for the current year.

Broadcom Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, September 30th. Shareholders of record on Monday, September 22nd were paid a dividend of $0.59 per share. The ex-dividend date was Monday, September 22nd. This represents a $2.36 annualized dividend and a yield of 0.6%. Broadcom's dividend payout ratio is presently 60.20%.

Insider Transactions at Broadcom

In other news, CEO Hock E. Tan sold 100,000 shares of Broadcom stock in a transaction on Tuesday, September 23rd. The stock was sold at an average price of $339.58, for a total value of $33,958,000.00. Following the transaction, the chief executive officer owned 725,638 shares in the company, valued at approximately $246,412,152.04. This trade represents a 12.11% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, Director Justine Page sold 800 shares of the business's stock in a transaction on Friday, November 14th. The stock was sold at an average price of $331.14, for a total value of $264,912.00. Following the transaction, the director directly owned 21,382 shares of the company's stock, valued at $7,080,435.48. This trade represents a 3.61% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have acquired 3,550 shares of company stock worth $1,227,869 and have sold 665,271 shares worth $225,483,192. 2.00% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Vanguard Group Inc. increased its position in shares of Broadcom by 1.3% during the second quarter. Vanguard Group Inc. now owns 483,442,939 shares of the semiconductor manufacturer's stock worth $133,261,046,000 after acquiring an additional 6,222,802 shares in the last quarter. State Street Corp lifted its position in Broadcom by 0.5% in the 2nd quarter. State Street Corp now owns 185,276,987 shares of the semiconductor manufacturer's stock valued at $51,071,601,000 after acquiring an additional 873,963 shares in the last quarter. Geode Capital Management LLC boosted its stake in Broadcom by 2.1% during the 2nd quarter. Geode Capital Management LLC now owns 108,610,718 shares of the semiconductor manufacturer's stock valued at $29,827,649,000 after purchasing an additional 2,226,585 shares during the last quarter. Norges Bank bought a new stake in Broadcom during the 2nd quarter worth approximately $18,579,549,000. Finally, Price T Rowe Associates Inc. MD increased its holdings in 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 purchasing an additional 17,985,046 shares in the last quarter. Institutional investors own 76.43% of the company's stock.

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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