Broadcom (NASDAQ:AVGO) Trading Down 4.6% – Here’s What Happened

Broadcom Inc. (NASDAQ:AVGO)’s stock price fell 4.6% during mid-day trading on Wednesday . The company traded as low as $357.61 and last traded at $362.48. Approximately 34,805,793 shares traded hands during mid-day trading, an increase of 38% from the average session volume of 25,180,193 shares. The stock had previously closed at $380.00.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: AI growth remains a major long-term opportunity. Broadcom supplies custom AI accelerators and networking products, and expanding enterprise AI spending could support a prolonged infrastructure cycle. The company recently reported quarterly revenue growth of 47.9% and exceeded both revenue and earnings expectations. Broadcom AI infrastructure article
• Positive Sentiment: Analyst support remains firm. TD Cowen reiterated its Buy rating and maintained a $500 price target, implying substantial upside from recent trading levels. Broadcom is also viewed as a key infrastructure supplier to companies scaling AI workloads, including Anthropic and Alphabet. Broadcom analyst price target update
• Neutral Sentiment: Anthropic’s reported growth adds potential ecosystem demand. Anthropic reportedly reached a $65 billion annualized revenue run rate and is expanding its use of cloud capacity and custom silicon. However, the article offers indirect exposure rather than a new Broadcom contract or financial guidance. Anthropic pre-IPO and Broadcom ecosystem article
• Negative Sentiment: Marvell’s new Google partnership is the immediate catalyst. Marvell announced an agreement to help Google develop custom AI chips and granted Alphabet a warrant or option to acquire up to approximately $12.2 billion of Marvell shares. Because Broadcom has been viewed as Google’s primary custom-chip partner, investors fear the deal could reduce Broadcom’s future share of Google’s AI silicon opportunity. Marvell Google AI chip deal article
• Negative Sentiment: Additional concerns are weighing on sentiment. Reports cite persistent questions about VMware-related security issues, the availability of financing for AI infrastructure, potential margin pressure, and Broadcom’s elevated valuation. Hedge-fund selling and comparisons with faster-growing AI infrastructure peers are adding to the cautious tone. Broadcom Marvell VMware and financing concerns article

Analyst Ratings Changes

A number of brokerages recently weighed in on AVGO. Weiss Ratings downgraded shares of Broadcom from a “buy (b)” rating to a “buy (b-)” rating in a report on Thursday, July 30th. Zacks Research lowered shares of Broadcom from a “strong-buy” rating to a “hold” rating in a research report on Thursday, May 21st. Wall Street Zen downgraded shares of Broadcom from a “strong-buy” rating to a “buy” rating in a research report on Saturday, July 18th. UBS Group set a $485.00 price target on shares of Broadcom and gave the stock a “buy” rating in a research note on Thursday, June 4th. Finally, Oppenheimer reaffirmed an “outperform” rating and issued a $535.00 price target (up from $450.00) on shares of Broadcom in a report on Thursday, June 4th. Twenty-eight analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $493.24.

Broadcom Stock Down 4.6%

The firm has a market capitalization of $1.72 trillion, a P/E ratio of 60.41, a PEG ratio of 0.75 and a beta of 1.45. The company has a debt-to-equity ratio of 0.71, a quick ratio of 2.01 and a current ratio of 2.24. The stock has a 50 day moving average of $389.46 and a 200-day moving average of $374.39.

Broadcom (NASDAQ:AVGO) last issued its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share for the quarter, topping analysts’ consensus estimates of $2.40 by $0.04. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The firm had revenue of $22.19 billion during the quarter, compared to analyst estimates of $22.13 billion. During the same quarter last year, the business earned $1.58 earnings per share. The company’s quarterly revenue was up 47.9% on a year-over-year basis. Research analysts predict that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd were given a dividend of $0.65 per share. The ex-dividend date was Monday, June 22nd. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. Broadcom’s dividend payout ratio is currently 43.33%.

Insider Buying and Selling

In related news, Director Harry L. You acquired 1,000 shares of the company’s stock in a transaction that occurred on Thursday, June 11th. The shares were acquired at an average price of $373.57 per share, with a total value of $373,570.00. Following the acquisition, the director owned 38,466 shares of the company’s stock, valued at approximately $14,369,743.62. This trade represents a 2.67% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Mark David Brazeal sold 25,000 shares of the stock in a transaction dated Friday, July 10th. The stock was sold at an average price of $401.33, for a total value of $10,033,250.00. Following the sale, the insider directly owned 194,989 shares in the company, valued at $78,254,935.37. This trade represents a 11.36% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 61,644 shares of company stock valued at $24,016,214 over the last three months. Insiders own 1.90% of the company’s stock.

Institutional Investors Weigh In On Broadcom

Institutional investors and hedge funds have recently modified their holdings of the company. ROSS JOHNSON & Associates LLC raised its position in shares of Broadcom by 1,320.0% during the 4th quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer’s stock valued at $25,000 after buying an additional 66 shares in the last quarter. Networth Advisors LLC grew its position in Broadcom by 546.2% in the first quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer’s stock worth $26,000 after acquiring an additional 71 shares in the last quarter. SWAN Capital LLC increased its stake in Broadcom by 261.9% in 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. Nvest Wealth Strategies Inc. purchased a new stake in Broadcom during the fourth quarter valued at about $33,000. Finally, Family CFO Inc purchased a new stake in Broadcom during the fourth quarter valued at about $35,000. 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.