Broadcom (NASDAQ:AVGO) Stock Price Down 3.3% – Here’s Why

Broadcom Inc. (NASDAQ:AVGO)’s share price fell 3.3% during trading on Friday . The stock traded as low as $419.80 and last traded at $425.19. 18,504,800 shares were traded during trading, a decline of 25% from the average session volume of 24,719,965 shares. The stock had previously closed at $439.79.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Wall Street remains constructive on Broadcom’s AI growth story, with analysts citing stronger-than-expected AI semiconductor demand and raising price targets as investors look ahead to the next earnings report. Wells Fargo Just Hiked Broadcom Price Target to $545: AI Semi Revenue Running 30-40% Higher Than Expected
• Positive Sentiment: Broadcom is being highlighted as a winner in the “second wave” of AI, with investors shifting toward inference, networking, and other infrastructure bottlenecks that could support longer-term revenue growth. The AI Boom’s Best-Kept Secret
• Positive Sentiment: A Zacks stock note singled out AVGO as a top tech name to own as the broader market benefits from AI optimism and a tech-led rebound. 4 Tech Stocks to Buy as S&P 500 Closes Above 7,500 Milestone
• Neutral Sentiment: Broadcom also continues to attract institutional interest, including reported stake increases from some fund managers, which reinforces demand for the shares but does not add new fundamental information. Bowie Capital Management Boosts Broadcom Stake by 2,422 Shares
• Negative Sentiment: Some market commentary warns that AI stocks are becoming crowded and overheated, with Broadcom included among the large-cap semiconductor names seen as highly crowded longs, raising the risk of a near-term pullback. UBS warns AI stocks are overheating as growth expectations collide with history
• Negative Sentiment: Broader AI-chip sentiment may also be vulnerable to a short-term correction after a sharp sector run, which could pressure AVGO even if its long-term outlook remains strong. The AI Chip Rally Is Masking a Dangerous Truth Half the S&P 500 Is Being Left Behind

Analyst Upgrades and Downgrades

Several brokerages have recently commented on AVGO. Erste Group Bank lowered Broadcom from a “buy” rating to a “hold” rating in a research report on Thursday, April 2nd. TD Cowen reiterated a “buy” rating and set a $500.00 price objective (up from $405.00) on shares of Broadcom in a research report on Friday. JPMorgan Chase & Co. increased their price objective on Broadcom from $475.00 to $500.00 and gave the company an “overweight” rating in a research report on Thursday, March 5th. Mizuho reiterated an “outperform” rating and set a $480.00 price objective on shares of Broadcom in a research report on Thursday, April 16th. Finally, Benchmark restated a “buy” rating and set a $485.00 target price on shares of Broadcom in a report on Thursday, March 5th. Two equities research analysts have rated the stock with a Strong Buy rating, twenty-seven have assigned a Buy rating and four have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $441.63.

Broadcom Trading Down 3.3%

The company has a current ratio of 1.90, a quick ratio of 1.73 and a debt-to-equity ratio of 0.80. The firm has a fifty day simple moving average of $363.46 and a two-hundred day simple moving average of $354.12. The firm has a market cap of $2.01 trillion, a PE ratio of 83.05, a PEG ratio of 0.86 and a beta of 1.43.

Broadcom (NASDAQ:AVGO) last released its quarterly earnings data on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share for the quarter, topping the consensus estimate of $2.03 by $0.02. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.The business had revenue of $19.31 billion during the quarter, compared to analysts’ expectations of $19.10 billion. During the same quarter last year, the business posted $1.60 EPS. The business’s revenue was up 29.5% on a year-over-year basis. Equities analysts forecast that Broadcom Inc. will post 9.95 EPS for the current year.

Broadcom Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Monday, March 23rd were paid a $0.65 dividend. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.6%. The ex-dividend date was Monday, March 23rd. Broadcom’s dividend payout ratio (DPR) is presently 50.78%.

Insider Transactions at Broadcom

In other news, insider S. Ram Velaga sold 38,841 shares of the firm’s stock in a transaction that occurred on Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total value of $12,491,265.60. Following the completion of the transaction, the insider owned 96,147 shares in the company, valued at $30,920,875.20. This trade represents a 28.77% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Charlie B. Kawwas sold 39,116 shares of the firm’s stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $321.61, for a total value of $12,580,096.76. Following the completion of the transaction, the insider owned 74,626 shares of the company’s stock, valued at approximately $24,000,467.86. The trade was a 34.39% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 324,282 shares of company stock worth $106,425,249. 1.90% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. raised its stake in Broadcom by 0.8% during the fourth quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer’s stock valued at $167,064,997,000 after buying an additional 3,919,715 shares during the last quarter. State Street Corp raised its stake in Broadcom by 2.7% during the fourth quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer’s stock valued at $65,788,194,000 after buying an additional 5,040,801 shares during the last quarter. Geode Capital Management LLC raised its stake in Broadcom by 1.4% during the fourth quarter. Geode Capital Management LLC now owns 111,277,280 shares of the semiconductor manufacturer’s stock valued at $38,396,634,000 after buying an additional 1,548,699 shares during the last quarter. Price T Rowe Associates Inc. MD raised its stake in Broadcom by 3.0% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 85,546,083 shares of the semiconductor manufacturer’s stock valued at $29,607,500,000 after buying an additional 2,491,644 shares during the last quarter. Finally, Norges Bank purchased a new position in Broadcom during the fourth quarter valued at $24,252,196,000. Institutional investors own 76.43% of the company’s stock.

About Broadcom

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.