Broadcom (NASDAQ:AVGO) Stock Price Down 2.2% After Insider Selling

Broadcom Inc. (NASDAQ:AVGO)’s share price was down 2.2% during trading on Wednesday after an insider sold shares in the company. The company traded as low as $368.03 and last traded at $369.34. Approximately 23,245,293 shares traded hands during mid-day trading, a decline of 12% from the average session volume of 26,483,795 shares. The stock had previously closed at $377.75.

Specifically, Director Justine Page sold 1,602 shares of the company’s stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $373.86, for a total value of $598,923.72. Following the transaction, the director owned 17,426 shares of the company’s stock, valued at approximately $6,514,884.36. This represents a 8.42% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on AVGO. Bank of America lifted their price target on Broadcom from $450.00 to $530.00 and gave the stock a “buy” rating in a report on Thursday, June 4th. Morgan Stanley set a $502.00 target price on Broadcom and gave the stock an “overweight” rating in a report on Thursday, June 4th. UBS Group set a $485.00 price target on shares of Broadcom and gave the company a “buy” rating in a research note on Thursday, June 4th. Erste Group Bank upgraded shares of Broadcom from a “hold” rating to a “buy” rating in a research note on Friday, June 5th. Finally, Mizuho raised their target price on shares of Broadcom from $480.00 to $530.00 and gave the stock an “outperform” rating in a report on Thursday, June 4th. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $493.24.

Broadcom News Roundup

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Wall Street remains upbeat on Broadcom’s AI ASIC business, with UBS and other firms reiterating Buy ratings and high price targets. UBS Reaffirms Buy Rating on Broadcom (AVGO) Amid AI ASIC Demand and OpenAI, Anthropic Growth
• Positive Sentiment: Analysts raised fair value estimates, reinforcing the view that Broadcom may still be undervalued relative to its long-term AI earnings potential. Broadcom (AVGO) Stock Gets Fair Value Boost As Analysts Split On AI Outlook
• Neutral Sentiment: Commentary continues to highlight Broadcom as a core AI infrastructure name, but much of it reiterates the existing long-term bull case rather than introducing a new catalyst. JPMorgan Stands by Sky-High Broadcom Target as Shares Slide
• Negative Sentiment: A report that a major AI developer is pursuing its own chip program raised questions about future demand for Broadcom’s custom silicon business. Why Broadcom Stock Slumped Today
• Negative Sentiment: Director Justine Page sold 1,602 shares, adding to investor caution around insider selling after Broadcom’s recent run. SEC Form 4 filing for Justine Page sale

Broadcom Price Performance

The firm’s 50-day moving average price is $409.17 and its 200 day moving average price is $362.34. The company has a market capitalization of $1.71 trillion, a price-to-earnings ratio of 60.08, a PEG ratio of 0.65 and a beta of 1.45. The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71.

Broadcom (NASDAQ:AVGO) last posted its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, topping 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 for the quarter, compared to analyst estimates of $22.13 billion. During the same quarter last year, the business posted $1.58 EPS. The firm’s revenue for the quarter was up 47.9% on a year-over-year basis. On average, sell-side analysts forecast that Broadcom Inc. will post 10.24 EPS for the current fiscal year.

Broadcom Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 22nd were paid a $0.65 dividend. The ex-dividend date was Monday, June 22nd. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. Broadcom’s dividend payout ratio (DPR) is presently 43.33%.

Institutional Trading of Broadcom

Institutional investors and hedge funds have recently modified their holdings of the business. Fullerton Advisors LLC increased its holdings in shares of Broadcom by 1.3% during the 1st quarter. Fullerton Advisors LLC now owns 1,989 shares of the semiconductor manufacturer’s stock worth $616,000 after purchasing an additional 25 shares during the period. NORTHSTAR ASSET MANAGEMENT Co increased its stake in Broadcom by 0.5% in the first quarter. NORTHSTAR ASSET MANAGEMENT Co now owns 5,350 shares of the semiconductor manufacturer’s stock valued at $1,656,000 after acquiring an additional 25 shares during the period. RFG Holdings Inc. raised its position in Broadcom by 0.3% in the first quarter. RFG Holdings Inc. now owns 8,499 shares of the semiconductor manufacturer’s stock worth $2,631,000 after purchasing an additional 26 shares in the last quarter. Yukon Wealth Management Inc. lifted its stake in Broadcom by 1.1% during the first quarter. Yukon Wealth Management Inc. now owns 2,501 shares of the semiconductor manufacturer’s stock worth $774,000 after purchasing an additional 26 shares during the period. Finally, Capital Planning LLC lifted its stake in Broadcom by 0.7% during the first quarter. Capital Planning LLC now owns 4,044 shares of the semiconductor manufacturer’s stock worth $1,252,000 after purchasing an additional 28 shares during the period. 76.43% of the stock is currently owned by institutional investors.

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.