Broadcom (NASDAQ:AVGO) Trading Down 5.9% - Here's Why

Key Points

• Broadcom's stock fell by 5.9% to $324.63 on Friday, significantly dropping from a previous close of $345.02, with trading volume up by 9% compared to average.
• Brokerages like Citigroup and Argus have upgraded their price targets for Broadcom, with a consensus rating of "Buy" and an average target of $357.22.
• The company reported a 22% year-over-year revenue increase to $15.95 billion for the last quarter, beating estimates and achieving a net margin of 31.59%.

Broadcom Inc. (NASDAQ:AVGO - Get Free Report)'s stock price dropped 5.9% on Friday . The company traded as low as $324.05 and last traded at $324.63. Approximately 28,352,872 shares were traded during trading, an increase of 9% from the average daily volume of 26,002,824 shares. The stock had previously closed at $345.02.

Analyst Upgrades and Downgrades

Several brokerages have recently commented on AVGO. Citigroup raised their price objective on shares of Broadcom from $315.00 to $350.00 and gave the stock a "buy" rating in a research report on Friday, September 5th. Argus raised their price objective on shares of Broadcom from $285.00 to $375.00 and gave the stock a "buy" rating in a research report on Monday, September 8th. Wells Fargo & Company raised their price objective on shares of Broadcom from $255.00 to $345.00 and gave the stock an "equal weight" rating in a research report on Friday, September 5th. Macquarie began coverage on shares of Broadcom in a research report on Monday, September 15th. They set an "outperform" rating and a $420.00 price objective for the company. Finally, Sanford C. Bernstein raised their price objective on shares of Broadcom from $295.00 to $400.00 and gave the stock an "outperform" 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 given a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Buy" and an average price target of $357.22.

Broadcom Trading Down 5.9%

The firm's 50-day moving average is $321.92 and its 200-day moving average is $261.43. The company has a current ratio of 1.50, a quick ratio of 1.37 and a debt-to-equity ratio of 0.86. The firm has a market cap of $1.53 trillion, a price-to-earnings ratio of 82.81, a P/E/G ratio of 1.91 and a beta of 1.20.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its quarterly earnings data on Thursday, September 4th. The semiconductor manufacturer reported $1.69 earnings per share for the quarter, beating the consensus estimate of $1.66 by $0.03. Broadcom had a return on equity of 36.60% and a net margin of 31.59%.The business had revenue of $15.95 billion for the quarter, compared to analysts' expectations of $15.82 billion. During the same period last year, the business earned $1.24 EPS. The business's revenue was up 22.0% on a year-over-year basis. Broadcom has set its Q4 2025 guidance at EPS. As a group, sell-side analysts anticipate that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Announces Dividend

The business also recently disclosed 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 0.7%. Broadcom's dividend payout ratio (DPR) is 60.20%.

Insider Buying and Selling at Broadcom

In other Broadcom news, CEO Hock E. Tan sold 148,154 shares of the firm's stock in a transaction on Wednesday, September 10th. The stock was sold at an average price of $336.67, for a total transaction of $49,879,007.18. Following the transaction, the chief executive officer directly owned 825,998 shares in the company, valued at approximately $278,088,746.66. This trade represents a 15.21% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Charlie B. Kawwas sold 3,893 shares of Broadcom stock in a transaction on Wednesday, September 17th. The stock was sold at an average price of $347.82, for a total value of $1,354,063.26. Following the sale, the insider owned 25,295 shares in the company, valued at $8,798,106.90. The trade was a 13.34% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last quarter, insiders purchased 3,550 shares of company stock worth $1,227,869 and sold 666,071 shares worth $225,623,008. 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 Broadcom by 21.8% in the 4th quarter. Brighton Jones LLC now owns 29,683 shares of the semiconductor manufacturer's stock worth $6,882,000 after acquiring an additional 5,322 shares during the last quarter. Revolve Wealth Partners LLC increased its holdings in Broadcom by 10.4% in the 4th quarter. Revolve Wealth Partners LLC now owns 7,997 shares of the semiconductor manufacturer's stock worth $1,854,000 after acquiring an additional 756 shares during the last quarter. GAMMA Investing LLC increased its holdings in Broadcom by 9.2% in the 1st quarter. GAMMA Investing LLC now owns 103,184 shares of the semiconductor manufacturer's stock worth $17,276,000 after acquiring an additional 8,672 shares during the last quarter. Capital Advisory Group Advisory Services LLC increased its holdings in Broadcom by 53.6% in the 1st quarter. Capital Advisory Group Advisory Services LLC now owns 2,365 shares of the semiconductor manufacturer's stock worth $396,000 after acquiring an additional 825 shares during the last quarter. Finally, Noble Wealth Management PBC increased its holdings in Broadcom by 9.7% in the 1st quarter. Noble Wealth Management PBC now owns 845 shares of the semiconductor manufacturer's stock worth $141,000 after acquiring an additional 75 shares during the last quarter. 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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