Broadcom (NASDAQ:AVGO) Stock Falls 1.9% – Should You Sell?

Broadcom Inc. (NASDAQ:AVGO)’s share price fell 1.9% during mid-day trading on Monday. The stock traded as low as $354.22 and last traded at $354.73. 15,292,703 shares changed hands during mid-day trading, a decline of 39% from the average daily volume of 25,036,375 shares. The stock had previously closed at $361.54.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s strategy of supplying customized AI chips and networking technology to hyperscalers—rather than competing directly with Nvidia in general-purpose GPUs—has reportedly helped secure multiyear contracts. This supports visibility into future AI revenue. Broadcom Is Building an AI Business Unlike Nvidia’s
• Positive Sentiment: Reports that Broadcom’s AI revenue is tripling reinforce the company’s strong exposure to the infrastructure spending boom, although the stock’s performance has lagged that growth. Broadcom’s AI Revenue Is Tripling
• Positive Sentiment: Broadcom’s reported $42 billion financing arrangement involving Anthropic is being viewed as a major long-term AI bet, potentially linking the company to substantial future chip demand and Anthropic’s growth. However, the size of the commitment also increases execution and counterparty risk. How Broadcom’s $42 Billion Loan to Anthropic Is a Bet on a $2 Trillion IPO

Analyst Ratings Changes

Several equities analysts recently commented on the stock. Raymond James Financial reiterated an “outperform” rating and set a $475.00 price target (up from $450.00) on shares of Broadcom in a report on Thursday, September 3rd. Rosenblatt Securities started coverage on Broadcom in a research report on Thursday, September 3rd. They set a “buy” rating and a $600.00 target price for the company. Weiss Ratings raised Broadcom from a “buy (b-)” rating to a “buy (b)” rating in a research note on Thursday. The Goldman Sachs Group increased their price target on Broadcom from $525.00 to $540.00 and gave the stock a “buy” rating in a report on Thursday, September 3rd. Finally, Arete Research increased their price target on Broadcom from $488.00 to $530.00 and gave the stock a “buy” rating in a report on Tuesday, July 21st. One equities research analyst has rated the stock with a Strong Buy rating, thirty-seven have assigned a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $527.20.

Broadcom Trading Down 1.9%

The company has a quick ratio of 2.29, a current ratio of 2.50 and a debt-to-equity ratio of 0.57. The stock’s 50 day moving average is $371.24 and its two-hundred day moving average is $382.80. The company has a market capitalization of $1.69 trillion, a PE ratio of 45.30 and a beta of 1.46.

Broadcom (NASDAQ:AVGO) last posted its earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, beating analysts’ consensus estimates of $3.22 by $0.10. Broadcom had a net margin of 42.94% and a return on equity of 48.33%. The business had revenue of $29.59 billion for the quarter, compared to the consensus estimate of $29.24 billion. During the same quarter last year, the firm posted $1.69 EPS. The company’s revenue for the quarter was up 85.5% on a year-over-year basis. As a group, sell-side analysts predict that Broadcom Inc. will post 10.37 EPS for the current fiscal year.

Broadcom Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Monday, September 21st were paid a dividend of $0.65 per share. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date was Monday, September 21st. Broadcom’s dividend payout ratio is 33.21%.

Institutional Trading of Broadcom

Several hedge funds have recently modified their holdings of the company. Cornerstone Advisors LLC acquired a new stake in shares of Broadcom in the 2nd quarter worth $92,522,000. GAMMA Investing LLC raised its holdings in Broadcom by 8.8% during the third quarter. GAMMA Investing LLC now owns 164,015 shares of the semiconductor manufacturer’s stock worth $55,889,000 after purchasing an additional 13,317 shares in the last quarter. ANB Bank acquired a new stake in Broadcom in the third quarter valued at about $1,181,000. Bank of America Corp DE lifted its position in Broadcom by 1.5% in the first quarter. Bank of America Corp DE now owns 58,737,097 shares of the semiconductor manufacturer’s stock valued at $18,179,719,000 after purchasing an additional 894,564 shares during the period. Finally, Clear Harbor Asset Management LLC purchased a new stake in Broadcom in the 2nd quarter valued at approximately $3,302,000. 76.43% of the stock is owned by hedge funds and other institutional investors.

About Broadcom

Broadcom Inc (NASDAQ: AVGO) is a global technology company that designs, develops, and supplies semiconductor and infrastructure software products. Its semiconductor solutions support wired and wireless communications, data center networking, broadband access, storage, industrial applications, and other markets.

The company’s semiconductor portfolio includes networking and switching products, custom application-specific integrated circuits, wireless connectivity components, radio-frequency devices, optical components, and storage-related solutions.