Broadcom (NASDAQ:AVGO) Trading Down 4.3% – Time to Sell?

Broadcom Inc. (NASDAQ:AVGO)’s stock price dropped 4.3% during trading on Thursday . The company traded as low as $334.16 and last traded at $339.98. Approximately 21,905,776 shares changed hands during mid-day trading, a decline of 14% from the average daily volume of 25,377,477 shares. The stock had previously closed at $355.22.

Analyst Ratings Changes

Several analysts have weighed in on AVGO shares. Citigroup reissued a “buy” rating and issued a $415.00 price target (up from $350.00) on shares of Broadcom in a research note on Tuesday, October 14th. Macquarie initiated coverage on Broadcom in a report on Monday, September 15th. They issued an “outperform” rating and a $420.00 price objective on the stock. Benchmark boosted their target price on Broadcom from $315.00 to $385.00 and gave the company a “buy” rating in a research note on Friday, September 5th. Barclays set a $450.00 price target on Broadcom and gave the stock an “overweight” rating in a research report on Tuesday, October 14th. Finally, Evercore ISI boosted their price objective on Broadcom from $342.00 to $403.00 and gave the company an “outperform” rating in a research report on Wednesday, October 15th. Three equities research analysts have rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the company has a consensus rating of “Buy” and a consensus price target of $372.52.

Broadcom Stock Up 0.7%

The company has a debt-to-equity ratio of 0.86, a current ratio of 1.50 and a quick ratio of 1.37. The stock has a market capitalization of $1.62 trillion, a PE ratio of 87.36, a PEG ratio of 1.38 and a beta of 1.19. The company has a 50 day moving average price of $349.09 and a 200-day moving average price of $295.48.

Broadcom (NASDAQ:AVGO) last released its quarterly earnings results 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 net margin of 31.59% and a return on equity of 36.60%. The business had revenue of $15.95 billion for the quarter, compared to analysts’ expectations of $15.82 billion. During the same quarter in the previous year, the business posted $1.24 earnings per share. The firm’s revenue for the quarter was up 22.0% compared to the same quarter last year. Broadcom has set its Q4 2025 guidance at EPS. As a group, analysts forecast that Broadcom Inc. will post 5.38 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, September 30th. Investors of record on Monday, September 22nd were paid a $0.59 dividend. This represents a $2.36 dividend on an annualized basis and a yield of 0.7%. The ex-dividend date of this dividend was Monday, September 22nd. Broadcom’s dividend payout ratio is presently 60.20%.

Insiders Place Their Bets

In other Broadcom news, insider Charlie B. Kawwas sold 3,893 shares of the company’s stock in a transaction that occurred on Wednesday, September 17th. The stock was sold at an average price of $347.82, for a total transaction of $1,354,063.26. Following the transaction, the insider owned 25,295 shares in the company, valued at approximately $8,798,106.90. This represents a 13.34% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Mark David Brazeal sold 16,558 shares of the stock in a transaction that occurred on Wednesday, September 17th. The stock was sold at an average price of $347.61, for a total value of $5,755,726.38. Following the completion of the transaction, the insider directly owned 329,302 shares of the company’s stock, valued at $114,468,668.22. This represents a 4.79% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders bought 3,550 shares of company stock valued at $1,227,869 and sold 664,471 shares valued at $225,218,280. 2.00% of the stock is currently owned by corporate insiders.

Institutional Trading of Broadcom

A number of hedge funds and other institutional investors have recently modified their holdings of AVGO. Cheviot Value Management LLC purchased a new stake in shares of Broadcom in the 1st quarter worth approximately $25,000. Sawyer & Company Inc grew its stake in shares of Broadcom by 62.1% in the second quarter. Sawyer & Company Inc now owns 94 shares of the semiconductor manufacturer’s stock worth $26,000 after acquiring an additional 36 shares during the last quarter. Longfellow Investment Management Co. LLC bought a new position in shares of Broadcom during the second quarter valued at $27,000. Legend Financial Advisors Inc. purchased a new position in shares of Broadcom in the 2nd quarter worth about $28,000. Finally, Teachers Insurance & Annuity Association of America bought a new position in Broadcom in the 2nd quarter worth about $28,000. 76.43% of the stock is 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.