Broadcom (NASDAQ:AVGO) Trading Down 3% - What's Next?

Key Points

• Broadcom's stock price fell by 3% to $286.19, with a significant decrease in trading volume of 61% compared to its average session.
• Analyst upgrades have resulted in a consensus rating of "Buy" for Broadcom, with target prices ranging from $290 to $400 from various financial institutions.
• The company recently declared a $0.59 quarterly dividend, representing an annual yield of 0.8%, with a hefty dividend payout ratio of 88.39%.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report)'s stock price fell 3% during trading on Wednesday . The company traded as low as $281.87 and last traded at $286.19. 10,071,764 shares traded hands during mid-day trading, a decline of 61% from the average session volume of 26,006,713 shares. The stock had previously closed at $294.91.

Wall Street Analyst Weigh In

AVGO has been the subject of a number of recent analyst reports. HSBC upgraded shares of Broadcom from a "hold" rating to a "buy" rating and set a $400.00 price target for the company in a research report on Tuesday, June 24th. Susquehanna boosted their target price on Broadcom from $280.00 to $300.00 and gave the company a "positive" rating in a research note on Friday, June 6th. UBS Group boosted their target price on Broadcom from $270.00 to $290.00 and gave the company a "buy" rating in a research note on Friday, June 6th. Mizuho boosted their target price on Broadcom from $315.00 to $320.00 and gave the company an "outperform" rating in a research note on Wednesday, July 16th. Finally, Oppenheimer boosted their target price on Broadcom from $265.00 to $305.00 and gave the company an "outperform" rating in a research note on Tuesday, July 15th. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-six have given a Buy rating and one has given a Hold rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Buy" and a consensus target price of $295.96.

Broadcom Price Performance

The business has a fifty day simple moving average of $280.51 and a two-hundred day simple moving average of $230.93. The company has a current ratio of 1.08, a quick ratio of 0.98 and a debt-to-equity ratio of 0.89. The stock has a market cap of $1.35 trillion, a PE ratio of 107.72, a P/E/G ratio of 2.17 and a beta of 1.15.

Broadcom (NASDAQ:AVGO - Get Free Report) last posted its quarterly earnings results on Thursday, June 5th. The semiconductor manufacturer reported $1.58 earnings per share for the quarter, topping the consensus estimate of $1.57 by $0.01. The company had revenue of $15 billion for the quarter, compared to the consensus estimate of $14.98 billion. Broadcom had a return on equity of 35.49% and a net margin of 22.64%.The firm's quarterly revenue was up 20.2% compared to the same quarter last year. During the same quarter in the prior year, the business posted $10.96 EPS. Broadcom has set its Q3 2025 guidance at EPS. Research analysts forecast that Broadcom Inc. will post 5.38 earnings per share for the current year.

Broadcom Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Monday, June 30th. Investors of record on Friday, June 20th were issued a $0.59 dividend. This represents a $2.36 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date of this dividend was Friday, June 20th. Broadcom's dividend payout ratio (DPR) is currently 88.39%.

Insiders Place Their Bets

In related news, insider Mark David Brazeal sold 50,000 shares of the stock in a transaction dated Monday, June 23rd. The stock was sold at an average price of $253.28, for a total transaction of $12,664,000.00. Following the completion of the sale, the insider owned 415,956 shares in the company, valued at approximately $105,353,335.68. This trade represents a 10.73% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CFO Kirsten M. Spears sold 56,310 shares of Broadcom stock in a transaction dated Wednesday, June 18th. The stock was sold at an average price of $251.75, for a total value of $14,176,042.50. Following the completion of the sale, the chief financial officer directly owned 361,937 shares in the company, valued at $91,117,639.75. This trade represents a 13.46% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 830,516 shares of company stock valued at $217,286,457. Insiders own 2.00% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the company. Barnes Dennig Private Wealth Management LLC purchased a new stake in shares of Broadcom during the 1st quarter valued at $25,000. Cheviot Value Management LLC acquired a new position in shares of Broadcom in the 1st quarter valued at $25,000. Inlight Wealth Management LLC acquired a new position in shares of Broadcom in the 1st quarter valued at $26,000. Sawyer & Company Inc increased its position in shares of 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 acquiring an additional 36 shares during the period. Finally, Longfellow Investment Management Co. LLC acquired a new stake in Broadcom during the 2nd quarter worth about $27,000. 76.43% of the stock is currently owned by hedge funds and other institutional investors.

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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