Broadcom (NASDAQ:AVGO) Trading Down 2.3% - Should You Sell?

Key Points

• Broadcom shares fell 2.3% in Tuesday trading, dipping as low as $405.86 before closing at $411.07, with volume below its average daily level.
• Despite the pullback, Wall Street remains bullish: analysts’ recent price targets include $450, $500, and even $582, and MarketBeat reports a consensus target of $448.10 with a Moderate Buy rating.
• Fundamentals and business momentum remain solid, with Broadcom recently beating quarterly EPS and revenue estimates, posting 29.5% year-over-year revenue growth, and announcing a five-year VMware Cloud Foundation renewal with LSEG tied to its cloud infrastructure strategy.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report) was down 2.3% during trading on Tuesday . The company traded as low as $405.86 and last traded at $411.07. Approximately 20,548,121 shares were traded during mid-day trading, a decline of 17% from the average daily volume of 24,608,828 shares. The stock had previously closed at $420.71.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom announced a new five-year renewal with LSEG to expand use of VMware Cloud Foundation, extending a long-running relationship and adding another reference customer for its cloud infrastructure software. LSEG renews Broadcom partnership to expand cloud infrastructure strategy (AVGO)
• Positive Sentiment: Wall Street remains constructive on Broadcom, with recent analyst price targets clustered well above the current trading range, reflecting confidence in AVGO’s AI infrastructure exposure and earnings growth. Wall Street sets Broadcom stock price target for next 12 months
• Positive Sentiment: Recent commentary continues to frame Broadcom as a major beneficiary of the AI infrastructure boom, with investors focusing on its strong revenue growth and leadership in chips and infrastructure software. ALAB vs. AVGO: Which AI Infrastructure Stock Is the Better Buy Now?
• Neutral Sentiment: Several market-watch articles and search-driven updates kept AVGO in focus, but they did not add new fundamental information likely to move the stock on their own. Investors Heavily Search Broadcom Inc. (AVGO): Here is What You Need to Know
• Negative Sentiment: Despite the positive news flow, AVGO had recently been declining in trading, suggesting investors may be taking profits or reacting to broader market weakness rather than the company’s fundamentals. Broadcom Inc. (AVGO) Declines More Than Market: Some Information for Investors

Analysts Set New Price Targets

Several equities analysts have recently weighed in on the stock. DA Davidson raised shares of Broadcom to a "hold" rating in a research note on Friday, February 13th. Bank of America decreased their price target on shares of Broadcom from $500.00 to $450.00 and set a "buy" rating on the stock in a research note on Thursday, March 5th. Wolfe Research raised shares of Broadcom from a "peer perform" rating to an "outperform" rating and set a $400.00 price target on the stock in a research note on Friday, January 30th. Evercore reissued an "outperform" rating and issued a $582.00 price target on shares of Broadcom in a research note on Tuesday. Finally, Rosenblatt Securities reissued a "buy" rating and issued a $500.00 price target on shares of Broadcom in a research note on Tuesday, April 7th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and four have given a Hold rating to the company. According to MarketBeat, Broadcom has a consensus rating of "Moderate Buy" and a consensus target price of $448.10.

Broadcom Stock Down 2.3%

The company has a debt-to-equity ratio of 0.80, a current ratio of 1.90 and a quick ratio of 1.73. The business's 50 day simple moving average is $367.36 and its 200 day simple moving average is $354.90. The company has a market capitalization of $1.95 trillion, a PE ratio of 80.29, a P/E/G ratio of 0.88 and a beta of 1.43.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 EPS for the quarter, topping analysts' consensus estimates of $2.03 by $0.02. Broadcom had a net margin of 36.57% and a return on equity of 38.61%. The company had revenue of $19.31 billion for the quarter, compared to the consensus estimate of $19.10 billion. During the same period in the previous year, the firm earned $1.60 earnings per share. Broadcom's quarterly revenue was up 29.5% compared to the same quarter last year. As a group, analysts anticipate that Broadcom Inc. will post 9.95 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Monday, March 23rd were paid a dividend of $0.65 per share. The ex-dividend date of this dividend was Monday, March 23rd. This represents a $2.60 dividend on an annualized basis and a yield of 0.6%. Broadcom's payout ratio is 50.78%.

Insider Activity

In other Broadcom news, CFO Kirsten M. Spears sold 36,292 shares of Broadcom stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total transaction of $11,671,507.20. Following the transaction, the chief financial officer directly owned 327,760 shares of the company's stock, valued at $105,407,616. The trade was a 9.97% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Charlie B. Kawwas sold 39,116 shares of Broadcom stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $321.61, for a total transaction of $12,580,096.76. Following the transaction, the insider directly owned 74,626 shares in the company, valued at $24,000,467.86. This trade represents a 34.39% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 324,282 shares of company stock valued at $106,425,249 over the last three months. 1.90% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Broadcom

A number of institutional investors have recently bought and sold shares of AVGO. ROSS JOHNSON & Associates LLC increased its position in shares of Broadcom by 1,320.0% during the fourth quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer's stock valued at $25,000 after acquiring an additional 66 shares during the last quarter. Networth Advisors LLC increased its position in shares of Broadcom by 546.2% during the first quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer's stock valued at $26,000 after acquiring an additional 71 shares during the last quarter. SWAN Capital LLC increased its position in shares of Broadcom by 261.9% during the fourth quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer's stock valued at $26,000 after acquiring an additional 55 shares during the last quarter. JCIC Asset Management Inc. acquired a new stake in shares of Broadcom during the third quarter valued at about $31,000. Finally, Miller Global Investments LLC acquired a new stake in shares of Broadcom during the fourth quarter valued at about $31,000. 76.43% of the stock is owned by hedge funds and other institutional investors.

Broadcom Company Profile

Broadcom Inc NASDAQ: AVGO is a global technology company that designs, develops and supplies semiconductor and infrastructure software solutions for a broad range of markets. The company's semiconductor business provides components and systems for wired and wireless communications, enterprise and cloud storage, networking and broadband access, serving original equipment manufacturers, cloud service providers, telecommunications carriers and industrial customers worldwide. Broadcom is headquartered in Irvine, California, and operates globally with research, development and sales organizations across North America, Europe and Asia.

On the semiconductor side, Broadcom's portfolio includes system-on-chip (SoC) and application-specific integrated circuit (ASIC) solutions, radio-frequency and connectivity components, Ethernet switching and PHY devices, storage adapters and controllers, optical transceivers and other networking silicon.

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