Broadcom (NASDAQ:AVGO) Shares Down 5.5% – Here’s What Happened

Shares of Broadcom Inc. (NASDAQ:AVGO) dropped 5.5% during mid-day trading on Friday. The stock traded as low as $319.30 and last traded at $326.08. Approximately 36,301,227 shares traded hands during trading, an increase of 46% from the average session volume of 24,864,658 shares. The stock had previously closed at $345.00.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: DA Davidson upgraded Broadcom to Buy from Neutral and raised its price target to $400 from $350. The firm cited Broadcom’s exposure to major AI customers, including Anthropic and potentially OpenAI. Broadcom Falls Despite DA Davidson Upgrade
• Positive Sentiment: A $63 billion financing arrangement is expected to fund purchases of Broadcom AI hardware for Anthropic. The deal provides a potentially large, funded customer for Broadcom’s custom-chip and networking business, although the company could face substantial obligations under the agreement’s backstop. Broadcom’s $63 Billion Anthropic Deal
• Positive Sentiment: Longer-term investment theses remain favorable: Broadcom projects AI semiconductor revenue of approximately $115 billion in fiscal 2027 and $230 billion in fiscal 2028. Meta’s planned financing for its AI expansion could also support additional demand for Broadcom’s custom silicon and networking products. Meta Financing Plan and Broadcom
• Neutral Sentiment: Broadcom is trading well below its record high and below its 50-day and 200-day moving averages. Analysts see upside, but valuation remains demanding, making execution of the AI growth forecast particularly important.
• Negative Sentiment: Intel’s weaker-than-expected forecast prompted investors to reassess semiconductor demand. Concerns were reinforced by Amazon’s results and the rising cost of building AI infrastructure, pressuring AI-exposed chip stocks broadly. Why Intel, AMD and Broadcom Are Falling
• Negative Sentiment: The Anthropic transaction also carries execution and financial-risk questions. Investors are waiting to see whether Broadcom can manufacture and deliver the required hardware at scale before fully crediting the projected revenue. Broadcom’s Anthropic Deal and Execution Risk

Wall Street Analyst Weigh In

A number of equities analysts have commented on AVGO shares. Royal Bank Of Canada began coverage on shares of Broadcom in a research report on Thursday, September 3rd. They issued an “outperform” rating on the stock. JPMorgan Chase & Co. reaffirmed a “buy” rating on shares of Broadcom in a report on Thursday, September 3rd. Raymond James Financial reiterated an “outperform” rating and issued a $475.00 target price (up from $450.00) on shares of Broadcom in a research note on Thursday, September 3rd. Lake Street Capital upgraded shares of Broadcom to a “buy” rating in a research note on Thursday, September 3rd. Finally, Erste Group Bank downgraded Broadcom from a “buy” rating to a “hold” rating in a report on Tuesday, July 7th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-nine have given a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, Broadcom currently has a consensus rating of “Moderate Buy” and a consensus target price of $530.52.

Broadcom Stock Performance

The company has a market capitalization of $1.56 trillion, a price-to-earnings ratio of 41.65 and a beta of 1.46. The company has a debt-to-equity ratio of 0.57, a current ratio of 2.50 and a quick ratio of 2.29. The stock has a 50 day moving average price of $352.81 and a two-hundred day moving average price of $366.96.

Broadcom (NASDAQ:AVGO) last released its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.22 by $0.10. The business had revenue of $29.59 billion during the quarter, compared to analysts’ expectations of $29.24 billion. Broadcom had a return on equity of 48.33% and a net margin of 42.94%. The firm’s revenue for the quarter was up 85.5% compared to the same quarter last year. During the same period in the previous year, the business posted $1.69 earnings per share. On average, analysts predict that Broadcom Inc. will post 10.37 EPS for the current fiscal year.

Broadcom Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Monday, September 21st were given a $0.65 dividend. This represents a $2.60 annualized dividend and a yield of 0.8%. The ex-dividend date was Monday, September 21st. Broadcom’s dividend payout ratio (DPR) is presently 33.21%.

Hedge Funds Weigh In On Broadcom

A number of large investors have recently modified their holdings of AVGO. Legal & General Group Plc bought a new position in Broadcom in the second quarter valued at $11,998,148,000. Bank of New York Mellon Corp bought a new stake in Broadcom during the 2nd quarter worth about $10,528,191,000. Jupiter Topco LLC bought a new stake in Broadcom during the 2nd quarter worth about $7,396,271,000. State Street Corp lifted its position in Broadcom by 8.7% during the 2nd quarter. State Street Corp now owns 208,031,610 shares of the semiconductor manufacturer’s stock worth $75,367,711,000 after buying an additional 16,651,378 shares in the last quarter. Finally, Deutsche Bank AG acquired a new position in shares of Broadcom during the 2nd quarter worth about $5,661,216,000. 76.43% of the stock is currently owned by institutional investors and hedge funds.

Broadcom Company Profile

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops and supplies semiconductor and infrastructure software products. Its semiconductor solutions support data center, networking, broadband, wireless communications, storage, industrial and other electronic applications.

The company’s semiconductor portfolio includes networking and switching components, custom accelerators, connectivity and wireless devices, broadband equipment, optical products, storage controllers and related infrastructure technologies.