Broadcom (NASDAQ:AVGO) Shares Down 1.1% – Here’s What Happened

Broadcom Inc. (NASDAQ:AVGO)’s share price traded down 1.1% during mid-day trading on Tuesday . The company traded as low as $370.33 and last traded at $392.16. 36,293,466 shares traded hands during mid-day trading, an increase of 41% from the average session volume of 25,767,381 shares. The stock had previously closed at $396.60.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Wall Street analysts and banks remain upbeat, with several reports raising price targets and earnings estimates for Broadcom after the selloff, suggesting the post-earnings pullback may have created a buying opportunity. Article Title
• Positive Sentiment: Broadcom continues to show strong AI demand, with commentary highlighting record revenue growth, AI semiconductor revenue surging, and a very large AI booking pipeline that supports the long-term growth story. Article Title
• Positive Sentiment: New coverage frames Broadcom as a leading AI stock and a top holding for major investors, reinforcing confidence in its role in custom AI chips and infrastructure spending. Article Title
• Positive Sentiment: Broadcom also announced cash tender offers for some outstanding debt securities, which may help optimize its balance sheet and lower financing risk over time. Article Title
• Neutral Sentiment: Some commentary suggests the stock’s recent drop reflects broader AI-stock de-risking rather than a company-specific collapse, as investors reassess what “good” earnings deserve in an expensive AI trade. Article Title
• Neutral Sentiment: Bearish takes continue to focus on Broadcom’s premium valuation and concerns that management’s AI messaging may be too cautious or too narrow, especially after the CEO said the company will focus only on chips. Article Title
• Negative Sentiment: Multiple reports say Broadcom’s shares have fallen sharply since earnings because the market was disappointed by the AI revenue guide and is questioning whether the stock’s premium valuation is still justified. Article Title

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on the stock. Susquehanna reaffirmed a “positive” rating and issued a $490.00 price objective (up from $450.00) on shares of Broadcom in a research report on Thursday, May 28th. Oppenheimer reiterated an “outperform” rating and issued a $535.00 target price (up from $450.00) on shares of Broadcom in a research note on Thursday, June 4th. Zacks Research cut shares of Broadcom from a “strong-buy” rating to a “hold” rating in a research note on Thursday, May 21st. Evercore reiterated an “outperform” rating and issued a $582.00 target price on shares of Broadcom in a research note on Tuesday, May 19th. Finally, Royal Bank Of Canada lifted their target price on shares of Broadcom from $360.00 to $400.00 and gave the stock a “sector perform” rating in a research note on Thursday, June 4th. One investment analyst has rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and three have given a Hold rating to the company. According to MarketBeat, Broadcom currently has an average rating of “Moderate Buy” and a consensus target price of $490.13.

Broadcom Stock Performance

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 firm’s 50 day simple moving average is $401.36 and its 200 day simple moving average is $362.87. The firm has a market capitalization of $1.83 trillion, a price-to-earnings ratio of 64.26, a PEG ratio of 0.71 and a beta of 1.41.

Broadcom (NASDAQ:AVGO) last announced its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, beating the consensus estimate of $2.40 by $0.04. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The business had revenue of $22.19 billion during the quarter, compared to analysts’ expectations of $22.13 billion. During the same period in the previous year, the business posted $1.58 EPS. The business’s quarterly revenue was up 47.9% compared to the same quarter last year. Sell-side analysts forecast that Broadcom Inc. will post 9.97 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd will be paid a dividend of $0.65 per share. This represents a $2.60 annualized dividend and a yield of 0.7%. The ex-dividend date is Monday, June 22nd. Broadcom’s payout ratio is presently 43.33%.

Insider Buying and Selling at Broadcom

In other Broadcom news, insider S. Ram Velaga sold 8,000 shares of Broadcom stock in a transaction that occurred on Friday, April 10th. The shares were sold at an average price of $370.52, for a total transaction of $2,964,160.00. Following the completion of the sale, the insider directly owned 57,932 shares in the company, valued at approximately $21,464,964.64. The trade was a 12.13% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, Director Gayla J. Delly sold 1,000 shares of the business’s stock in a transaction on Thursday, April 9th. The shares were sold at an average price of $358.31, for a total transaction of $358,310.00. Following the completion of the transaction, the director owned 32,352 shares of the company’s stock, valued at approximately $11,592,045.12. This represents a 3.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 324,282 shares of company stock worth $106,425,249. Corporate insiders own 1.90% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in AVGO. Norges Bank purchased a new position in Broadcom in the fourth quarter valued at $24,252,196,000. Cardano Risk Management B.V. increased its holdings in Broadcom by 895.2% in the fourth quarter. Cardano Risk Management B.V. now owns 12,689,800 shares of the semiconductor manufacturer’s stock valued at $4,391,940,000 after buying an additional 11,414,701 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its holdings in Broadcom by 118.1% in the first quarter. Arrowstreet Capital Limited Partnership now owns 18,739,006 shares of the semiconductor manufacturer’s stock valued at $5,799,889,000 after buying an additional 10,145,377 shares in the last quarter. State Street Corp increased its holdings in Broadcom by 2.7% in 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 in the last quarter. Finally, Vanguard Group Inc. increased its holdings in Broadcom by 0.8% in 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 in the last quarter. Hedge funds and other institutional investors own 76.43% of the company’s stock.

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.