Broadcom (NASDAQ:AVGO) Shares Down 3.2% – Time to Sell?

Shares of Broadcom Inc. (NASDAQ:AVGO) dropped 3.2% during trading on Tuesday . The stock traded as low as $377.01 and last traded at $380.00. 22,786,186 shares changed hands during trading, a decline of 9% from the average session volume of 25,071,703 shares. The stock had previously closed at $392.43.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: AI demand and analyst support remain key positives. Broadcom supplies custom AI accelerators and networking equipment, and analysts continue to see significant long-term growth from data-center spending. TD Cowen reiterated its Buy rating and maintained a $500 price target. Wall Street analyst updates Broadcom stock price target
• Positive Sentiment: Broadcom continues to benefit from custom-chip adoption. Commentary highlighted that the company is already monetizing AI demand through both custom silicon and the networking products used to connect AI systems. A separate analysis argued that expanding AI spending could support a prolonged semiconductor upcycle. Unfortunate News for Broadcom Stock Investors
• Neutral Sentiment: Broadcom remains connected to major AI ecosystems. Reports on Anthropic’s rapid growth noted Broadcom’s role in custom-silicon deployments alongside Alphabet, although the articles did not disclose a new Broadcom contract or immediate financial impact. The Pre-IPO Playbook: How to Cash in on Anthropic Before the Bell
• Negative Sentiment: Marvell Technology’s Google deal raised competitive fears. Marvell announced an agreement to help Google develop custom AI chips and granted Alphabet an option to acquire roughly $12.2 billion of Marvell shares. Because Broadcom has been viewed as Google’s primary custom-chip partner, investors interpreted the announcement as a potential threat to Broadcom’s future AI revenue and customer concentration. Broadcom stock falls on Marvell’s Google AI chip deal
• Negative Sentiment: Investors are also weighing valuation and financing risks. Broadcom trades at a high earnings multiple after a major rally, while reports cited concerns about AI funding availability, VMware-related issues and a bearish shift among some hedge funds. Comparisons with NVIDIA and Astera Labs also suggested that competing AI stocks may offer better risk-adjusted growth. Broadcom falls as Marvell lands Google custom-chip deal

Analyst Ratings Changes

AVGO has been the subject of a number of recent analyst reports. Wells Fargo & Company reissued an “overweight” rating and issued a $545.00 price objective (up from $430.00) on shares of Broadcom in a research report on Thursday, May 14th. Bank of America upped their target price on Broadcom from $450.00 to $530.00 and gave the company a “buy” rating in a research report on Thursday, June 4th. Cantor Fitzgerald reiterated an “overweight” rating and issued a $525.00 price target on shares of Broadcom in a research note on Thursday, June 4th. Rosenblatt Securities reissued a “buy” rating and issued a $500.00 price target on shares of Broadcom in a report on Thursday, June 4th. Finally, Oppenheimer restated an “outperform” rating and set a $535.00 price target (up from $450.00) on shares of Broadcom in a research note on Thursday, June 4th. Twenty-eight investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $493.24.

Broadcom Stock Down 4.6%

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 has a market cap of $1.72 trillion, a price-to-earnings ratio of 60.41, a PEG ratio of 0.73 and a beta of 1.45. The business’s 50 day moving average price is $389.27 and its 200 day moving average price is $374.61.

Broadcom (NASDAQ:AVGO) last announced its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share for the quarter, beating the consensus estimate of $2.40 by $0.04. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The firm had revenue of $22.19 billion during the quarter, compared to analyst estimates of $22.13 billion. During the same quarter in the previous year, the business earned $1.58 EPS. Broadcom’s revenue for the quarter was up 47.9% compared to the same quarter last year. On average, equities analysts forecast that Broadcom Inc. will post 10.24 EPS for the current year.

Broadcom Dividend Announcement

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

Insider Activity

In related news, Director Harry L. You purchased 1,000 shares of Broadcom stock in a transaction dated Thursday, June 11th. The shares were acquired at an average cost of $373.57 per share, with a total value of $373,570.00. Following the purchase, the director owned 38,466 shares of the company’s stock, valued at approximately $14,369,743.62. The trade was a 2.67% increase in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Justine Page sold 1,602 shares of the company’s stock in a transaction 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 in the company, valued at $6,514,884.36. This trade represents a 8.42% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 61,644 shares of company stock worth $24,016,214 over the last quarter. 1.90% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Broadcom

Several hedge funds and other institutional investors have recently made changes to their positions in AVGO. Fullerton Advisors LLC increased its holdings in shares of Broadcom by 1.3% in the 1st quarter. Fullerton Advisors LLC now owns 1,989 shares of the semiconductor manufacturer’s stock valued at $616,000 after acquiring an additional 25 shares during the period. NORTHSTAR ASSET MANAGEMENT Co grew its position in Broadcom by 0.5% during the 1st quarter. NORTHSTAR ASSET MANAGEMENT Co now owns 5,350 shares of the semiconductor manufacturer’s stock worth $1,656,000 after purchasing an additional 25 shares during the last quarter. RFG Holdings Inc. increased its stake in Broadcom by 0.3% in the first quarter. RFG Holdings Inc. now owns 8,499 shares of the semiconductor manufacturer’s stock valued at $2,631,000 after purchasing an additional 26 shares during the period. Yukon Wealth Management Inc. increased its stake in Broadcom by 1.1% in the first quarter. Yukon Wealth Management Inc. now owns 2,501 shares of the semiconductor manufacturer’s stock valued at $774,000 after purchasing an additional 26 shares during the period. Finally, NerdWallet Wealth Partners LLC raised its holdings in shares of Broadcom by 2.6% in the second quarter. NerdWallet Wealth Partners LLC now owns 1,057 shares of the semiconductor manufacturer’s stock valued at $399,000 after buying an additional 27 shares during the last quarter. Hedge funds and other 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.