Broadcom (NASDAQ:AVGO) Stock Falls 1.3% – Time to Sell?

Broadcom Inc. (NASDAQ:AVGO)’s stock price traded down 1.3% during mid-day trading on Thursday. The company traded as low as $346.89 and last traded at $350.36. 20,834,013 shares changed hands during mid-day trading, a decline of 18% from the average daily volume of 25,281,299 shares. The stock had previously closed at $354.99.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s custom-chip opportunity remains the primary bullish catalyst. Analysts and bullish investors point to hyperscaler partnerships, AI networking demand, and management’s projections for approximately $115 billion in AI semiconductor revenue in fiscal 2027 and $230 billion in fiscal 2028. The AI Boom Isn’t Over: 3 Stocks You Need to Watch
• Positive Sentiment: Recent coverage also highlights Broadcom’s share-repurchase activity and AI-chip deals with major hyperscalers, reinforcing the view that the company can benefit as customers diversify beyond standard AI processors. Its software business and dividend-growth history provide additional long-term support. Broadcom Is Up 7.4% After Massive Buybacks and AI Chip Deals
• Neutral Sentiment: Broadcom’s valuation reflects substantial optimism, with a reported price-to-earnings ratio above 44 and the stock trading below its 50-day and 200-day moving averages. Analysts remain constructive, but the market is demanding strong execution against ambitious AI forecasts.
• Neutral Sentiment: Broader semiconductor sentiment has also been affected by higher Treasury yields, rising oil prices, and profit-taking after a strong market advance. These factors may be amplifying the reaction to company-specific news. Why Are Intel, AMD, and Broadcom Stocks Down?
• Negative Sentiment: China is reportedly surveying Broadcom switches used in state-backed data centers as Beijing encourages domestic semiconductor suppliers and reduces reliance on foreign technology. The review raises risks of lost Chinese business, tighter restrictions, and slower adoption of Broadcom’s networking products. China Surveys Broadcom Switch Use in State Data Centers
• Negative Sentiment: Investors are increasingly focused on whether Broadcom can convert its aggressive AI outlook into results while managing geopolitical exposure and elevated expectations. The China developments add a new risk to an AI thesis already priced for considerable growth. Broadcom: China Just Added a New Risk to the AI Story

Analyst Ratings Changes

Several equities research analysts recently weighed in on the stock. Lake Street Capital upgraded shares of Broadcom to a “buy” rating in a research report on Thursday, September 3rd. Citic Securities raised shares of Broadcom to a “buy” rating and lifted their price target for the stock from $450.00 to $525.00 in a research note on Tuesday, September 8th. Mizuho upped their price target on shares of Broadcom from $480.00 to $530.00 and gave the company an “outperform” rating in a report on Thursday, June 4th. Jefferies Financial Group started coverage on shares of Broadcom in a research report on Thursday, September 3rd. They issued a “buy” rating and a $550.00 price objective on the stock. Finally, Royal Bank Of Canada started coverage on Broadcom in a research report on Thursday, September 3rd. They set an “outperform” rating for the company. One investment analyst has rated the stock with a Strong Buy rating, thirty-seven have given a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat, Broadcom has a consensus rating of “Moderate Buy” and an average target price of $527.20.

Broadcom Stock Down 1.3%

The company has a market cap of $1.67 trillion, a P/E ratio of 44.75 and a beta of 1.44. The company has a debt-to-equity ratio of 0.57, a quick ratio of 2.29 and a current ratio of 2.50. The business’s fifty day moving average is $377.21 and its two-hundred day moving average is $380.26.

Broadcom (NASDAQ:AVGO) last issued its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, topping analysts’ consensus estimates of $3.22 by $0.10. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. The business had revenue of $29.59 billion for the quarter, compared to the consensus estimate of $29.24 billion. During the same period in the prior year, the firm earned $1.69 EPS. The company’s revenue for the quarter was up 85.5% compared to the same quarter last year. Equities analysts predict that Broadcom Inc. will post 10.36 EPS for the current year.

Broadcom Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st will be given a dividend of $0.65 per share. The ex-dividend date of this dividend is Monday, September 21st. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. Broadcom’s dividend payout ratio is presently 33.21%.

Insider Activity

In related news, Director Gayla Delly sold 1,890 shares of Broadcom stock in a transaction dated Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total value of $728,368.20. Following the completion of the sale, the director directly owned 31,326 shares in the company, valued at $12,072,413.88. The trade was a 5.69% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, insider Mark Brazeal sold 25,000 shares of the firm’s stock in a transaction dated Friday, July 10th. The shares were sold at an average price of $401.33, for a total transaction of $10,033,250.00. Following the transaction, 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 SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 53,492 shares of company stock worth $20,840,292. Company insiders own 1.90% of the company’s stock.

Institutional Trading of Broadcom

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Networth Advisors LLC boosted its position in 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 purchasing an additional 71 shares in the last quarter. Core Capital Management & Research inc. purchased a new stake in shares of Broadcom during the second quarter valued at about $31,000. Harborfront Financial Group LLC bought a new stake in shares of Broadcom in the 2nd quarter valued at about $38,000. Cherry Tree Wealth Management LLC grew its position in shares of Broadcom by 44.9% in the 4th quarter. Cherry Tree Wealth Management LLC now owns 129 shares of the semiconductor manufacturer’s stock worth $45,000 after buying an additional 40 shares during the last quarter. Finally, Godfrey Financial Associates Inc. purchased a new position in shares of Broadcom in the 4th quarter worth approximately $56,000. Institutional investors own 76.43% of the company’s stock.

Broadcom Company Profile

Broadcom Inc (NASDAQ:AVGO) designs, develops and supplies semiconductor and infrastructure software products for businesses, telecommunications providers and other organizations worldwide. Its semiconductor portfolio includes networking and connectivity components, custom application-specific integrated circuits, broadband and wireless communications products, storage adapters, optical components, and industrial solutions.

The company also provides enterprise infrastructure software through businesses including VMware, which offers virtualization and private- and hybrid-cloud solutions; mainframe and enterprise software; and cybersecurity products.