Broadcom (NASDAQ:AVGO) Trading Down 2% Following Insider Selling

Key Points

• Broadcom's stock fell 2% in mid-day trading after significant insider selling, with Director Henry Samueli and CEO Hock E. Tan both selling portions of their shares.
• Despite the insider transactions, various analysts have upgraded their ratings for Broadcom, with target prices ranging from $350 to $420.
• The company recently announced a $0.59 quarterly dividend, reflecting a 0.7% yield, with an ex-dividend date of September 22nd.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report) dropped 2% during mid-day trading on Monday following insider selling activity. The company traded as low as $327.55 and last traded at $327.90. Approximately 21,079,968 shares changed hands during trading, a decline of 20% from the average daily volume of 26,293,984 shares. The stock had previously closed at $334.53.

Specifically, Director Henry Samueli sold 368,797 shares of the stock in a transaction on Wednesday, September 24th. The stock was sold at an average price of $337.91, for a total transaction of $124,620,194.27. Following the sale, the director owned 37,722,534 shares of the company's stock, valued at approximately $12,746,821,463.94. This trade represents a 0.97% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Hock E. Tan sold 100,000 shares of Broadcom stock in a transaction dated Tuesday, September 23rd. The shares were sold at an average price of $339.58, for a total value of $33,958,000.00. Following the completion of the transaction, the chief executive officer owned 725,638 shares in the company, valued at $246,412,152.04. This trade represents a 12.11% decrease in their position. The disclosure for this sale can be found here.

Analyst Upgrades and Downgrades

A number of analysts recently commented on the stock. Macquarie started coverage on shares of Broadcom in a research note on Monday, September 15th. They issued an "outperform" rating and a $420.00 target price for the company. Oppenheimer reaffirmed an "outperform" rating and set a $360.00 price target (up previously from $325.00) on shares of Broadcom in a research report on Friday, September 5th. Deutsche Bank Aktiengesellschaft raised their price objective on Broadcom from $300.00 to $350.00 and gave the stock a "buy" rating in a research note on Friday, September 5th. Arete Research upgraded shares of Broadcom to a "strong-buy" rating in a research note on Monday, July 28th. Finally, Barclays raised their target price on shares of Broadcom from $265.00 to $400.00 and gave the stock an "overweight" rating in a report on Friday, September 5th. Three research analysts have rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and one has given a Hold rating to the company. According to data from MarketBeat, Broadcom presently has an average rating of "Buy" and an average target price of $356.48.

Broadcom Trading Down 2.0%

The firm has a market cap of $1.55 trillion, a price-to-earnings ratio of 83.63, a price-to-earnings-growth ratio of 1.85 and a beta of 1.16. The company's 50-day moving average price is $313.66 and its 200-day moving average price is $253.32. The company has a quick ratio of 1.37, a current ratio of 1.50 and a debt-to-equity ratio of 0.86.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly earnings results on Thursday, September 4th. The semiconductor manufacturer reported $1.69 earnings per share 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 analyst estimates of $15.82 billion. During the same period last year, the company posted $1.24 EPS. Broadcom's quarterly revenue was up 22.0% compared to the same quarter last year. Broadcom has set its Q4 2025 guidance at EPS. Equities analysts expect that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 30th. Investors of record on Monday, September 22nd will be paid a dividend of $0.59 per share. This represents a $2.36 annualized dividend and a 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 institutional investors have recently bought and sold shares of AVGO. Barnes Dennig Private Wealth Management LLC acquired a new position in shares of Broadcom during the 1st quarter valued at about $25,000. Cheviot Value Management LLC acquired a new stake in Broadcom during the first quarter worth about $25,000. Inlight Wealth Management LLC purchased a new position in Broadcom during the first quarter worth about $26,000. Sawyer & Company Inc boosted its holdings in Broadcom by 62.1% in the 2nd quarter. Sawyer & Company Inc now owns 94 shares of the semiconductor manufacturer's stock valued at $26,000 after purchasing an additional 36 shares during the last quarter. Finally, Longfellow Investment Management Co. LLC purchased a new stake in shares of Broadcom in the 2nd quarter valued at approximately $27,000. 76.43% of the stock is owned by hedge funds and other 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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