Broadcom (NASDAQ:AVGO) Stock Price Down 3.4% – Should You Sell?

Broadcom Inc. (NASDAQ:AVGO) shares traded down 3.4% on Thursday . The company traded as low as $329.56 and last traded at $331.17. 21,618,264 shares changed hands during trading, a decline of 19% from the average session volume of 26,763,242 shares. The stock had previously closed at $342.76.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom unveiled a new Wi?Fi 8 enterprise platform aimed at AI edge and enterprise networking, reinforcing its strategy to monetize AI traffic beyond servers. Broadcom Targets AI Edge With New Wi Fi 8 Enterprise Platform
• Positive Sentiment: Coverage highlights the Wi?Fi 8 launch as extending Broadcom’s AI networking story into enterprises — a potential multi?year revenue tailwind if adoption follows. Broadcom Wi Fi 8 Launch Extends AI Networking Story Into Enterprises
• Positive Sentiment: UBS and other outlets reiterated bullish views on AVGO’s AI momentum and server demand, suggesting multi?year upside even as near?term beat/raise potential is limited. UBS Remains Bullish on Broadcom (AVGO) Amid Strong Server Demand and Limited Near-Term Earnings Upside
• Positive Sentiment: Some funds and strategies are increasing exposure to Broadcom on its AI/infrastructure software positioning (SGA large cap growth mention). SGA U.S. Large Cap Growth Strategy Bets on Broadcom (AVGO)
• Neutral Sentiment: Analytical comparisons with Nvidia highlight Broadcom as a serious AI?chip competitor; useful context but not an immediate catalyst. Nvidia and Broadcom’s AI Chips Will Go Head-to-Head. How They Compare.
• Neutral Sentiment: Short?interest data reported an apparent large increase but reads as zero shares (data anomaly); days?to?cover shows 0.0 — treat this as noisy/uncertain positioning data rather than a real signal.
• Negative Sentiment: Several institutional managers trimmed or cut positions recently (Morningstar Investment Management, SCS Capital Management, Intermede Investment Partners), which can pressure the stock if larger managers follow. Morningstar Investment Management Cuts Broadcom Inc. Stake Sharply
• Negative Sentiment: Technical/market caution: commentary flagged a “risky pattern” despite tailwinds, which may encourage profit?taking after AVGO’s strong run. Broadcom stock: risky pattern emerges despite solid tailwinds

Analysts Set New Price Targets

A number of research analysts have weighed in on the stock. Raymond James Financial set a $420.00 price objective on shares of Broadcom and gave the company an “outperform” rating in a report on Thursday, November 20th. Royal Bank Of Canada assumed coverage on shares of Broadcom in a research note on Wednesday, January 14th. They issued a “sector perform” rating and a $370.00 price target for the company. Evercore increased their target price on shares of Broadcom from $342.00 to $403.00 and gave the company an “outperform” rating in a research report on Wednesday, October 15th. Truist Financial boosted their price target on Broadcom from $500.00 to $510.00 and gave the company a “buy” rating in a research report on Friday, December 19th. Finally, Sanford C. Bernstein reaffirmed an “outperform” rating and issued a $475.00 target price (up from $400.00) on shares of Broadcom in a report on Friday, December 12th. Two investment analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Buy” and a consensus target price of $433.87.

Broadcom Trading Down 3.4%

The business’s 50 day moving average price is $346.17 and its 200-day moving average price is $340.08. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.58 and a current ratio of 1.71. The firm has a market cap of $1.57 trillion, a price-to-earnings ratio of 69.57, a price-to-earnings-growth ratio of 1.10 and a beta of 1.21.

Broadcom (NASDAQ:AVGO) last released its quarterly earnings data on Thursday, December 11th. The semiconductor manufacturer reported $1.95 earnings per share for the quarter, topping analysts’ consensus estimates of $1.87 by $0.08. The business had revenue of $18.02 billion for the quarter, compared to analysts’ expectations of $17.46 billion. Broadcom had a net margin of 36.20% and a return on equity of 37.45%. The company’s revenue for the quarter was up 28.2% compared to the same quarter last year. During the same quarter last year, the company earned $1.42 EPS. Equities analysts expect that Broadcom Inc. will post 5.38 EPS for the current year.

Broadcom Increases Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, December 31st. Investors of record on Monday, December 22nd were paid a $0.65 dividend. The ex-dividend date of this dividend was Monday, December 22nd. This represents a $2.60 annualized dividend and a yield of 0.8%. This is an increase from Broadcom’s previous quarterly dividend of $0.59. Broadcom’s dividend payout ratio (DPR) is currently 54.62%.

Insider Transactions at Broadcom

In related news, insider Charlie B. Kawwas sold 1,928 shares of the company’s stock in a transaction on Wednesday, December 17th. The shares were sold at an average price of $327.80, for a total transaction of $631,998.40. Following the completion of the sale, the insider directly owned 23,582 shares of the company’s stock, valued at approximately $7,730,179.60. This represents a 7.56% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Hock E. Tan sold 70,000 shares of the stock in a transaction dated Tuesday, January 6th. The shares were sold at an average price of $347.30, for a total transaction of $24,311,000.00. Following the completion of the sale, the chief executive officer owned 132,836 shares of the company’s stock, valued at approximately $46,133,942.80. The trade was a 34.51% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 779,901 shares of company stock valued at $284,069,237 in the last three months. 2.00% of the stock is currently owned by company insiders.

Institutional Trading of Broadcom

Several institutional investors and hedge funds have recently bought and sold shares of the stock. ROSS JOHNSON & Associates LLC lifted its holdings in Broadcom by 1,320.0% during the 4th quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer’s stock valued at $25,000 after purchasing an additional 66 shares during the last quarter. SWAN Capital LLC raised its stake in shares of Broadcom by 261.9% during the fourth quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer’s stock valued at $26,000 after acquiring an additional 55 shares during the last quarter. Miller Global Investments LLC bought a new position in Broadcom during the fourth quarter worth $31,000. JCIC Asset Management Inc. acquired a new position in shares of Broadcom during the third quarter worth approximately $31,000. Finally, Nvest Wealth Strategies Inc. bought a new stake in shares of Broadcom in the 4th quarter worth $33,000. 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.