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

Shares of Broadcom Inc. (NASDAQ:AVGO) were down 1.1% during trading on Monday . The stock traded as low as $414.37 and last traded at $420.71. Approximately 16,906,037 shares traded hands during trading, a decline of 31% from the average daily volume of 24,641,506 shares. The stock had previously closed at $425.19.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom announced a renewed five-year technology partnership with London Stock Exchange Group (LSEG), centered on VMware Cloud Foundation. The deal expands Broadcom’s role in LSEG’s private cloud and adds professional services, reinforcing recurring infrastructure-software revenue and validating VMware’s enterprise relevance. Article Title
• Positive Sentiment: Applied Materials named Broadcom as an EPIC Innovation Partner to accelerate advanced packaging technologies for next-generation AI chips and systems, highlighting Broadcom’s growing importance in the AI semiconductor supply chain. Article Title
• Positive Sentiment: Multiple recent analyst notes remain upbeat on AVGO, with several firms reiterating Buy/Overweight/Outperform ratings and price targets clustered well above current trading levels, suggesting Wall Street still sees upside. Article Title
• Positive Sentiment: Commentary highlighting Broadcom’s AI visibility and continued custom AI chip momentum supports the long-term growth narrative, even as the valuation multiple has not expanded as fast as the fundamentals. Article Title
• Neutral Sentiment: Broadcom was also mentioned in a screen of high-ROE stocks that may hold up better during a tech slump, which is more of a defensive stock-selection note than a direct catalyst. Article Title
• Negative Sentiment: Broader market weakness in mega-cap tech and the ongoing tech sell-off are weighing on AVGO, limiting enthusiasm despite the company-specific positive news. Article Title

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently issued reports on AVGO shares. Erste Group Bank lowered shares of Broadcom from a “buy” rating to a “hold” rating in a report on Thursday, April 2nd. DA Davidson upgraded shares of Broadcom to a “hold” rating in a report on Friday, February 13th. Citigroup restated a “buy” rating and set a $500.00 price target (up from $475.00) on shares of Broadcom in a report on Tuesday, May 12th. Morgan Stanley boosted their price target on shares of Broadcom from $462.00 to $470.00 and gave the company an “overweight” rating in a report on Friday, March 6th. Finally, Wells Fargo & Company restated an “overweight” rating and set a $545.00 price target (up from $430.00) on shares of Broadcom in a report on Thursday, May 14th. Two investment analysts have rated the stock with a Strong Buy rating, twenty-seven have issued a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $448.10.

Broadcom Price Performance

The firm has a market cap of $1.98 trillion, a price-to-earnings ratio of 81.59, a price-to-earnings-growth ratio of 0.87 and a beta of 1.43. The company has a debt-to-equity ratio of 0.80, a current ratio of 1.90 and a quick ratio of 1.73. The stock’s fifty day moving average price is $368.97 and its 200-day moving average price is $355.08.

Broadcom (NASDAQ:AVGO) last released its quarterly earnings data on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share for the quarter, beating the consensus estimate of $2.03 by $0.02. The firm had revenue of $19.31 billion for the quarter, compared to analyst estimates of $19.10 billion. Broadcom had a net margin of 36.57% and a return on equity of 38.61%. The company’s revenue for the quarter was up 29.5% compared to the same quarter last year. During the same quarter in the prior year, the business earned $1.60 EPS. Equities research analysts predict that Broadcom Inc. will post 9.97 EPS for the current fiscal year.

Broadcom Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Monday, March 23rd were paid a $0.65 dividend. This represents a $2.60 annualized dividend and a yield of 0.6%. The ex-dividend date was Monday, March 23rd. Broadcom’s dividend payout ratio is currently 50.78%.

Insider Activity at Broadcom

In other Broadcom news, CFO Kirsten M. Spears sold 36,292 shares of the company’s stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total value of $11,671,507.20. Following the transaction, the chief financial officer owned 327,760 shares in the company, valued at approximately $105,407,616. This represents a 9.97% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Charlie B. Kawwas sold 39,116 shares of the company’s stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $321.61, for a total transaction of $12,580,096.76. Following the completion of the transaction, the insider owned 74,626 shares in the company, valued at approximately $24,000,467.86. This represents a 34.39% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 324,282 shares of company stock worth $106,425,249 in the last 90 days. 1.90% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the stock. Norges Bank acquired a new position in shares of Broadcom during the 4th quarter worth $24,252,196,000. Cardano Risk Management B.V. increased its stake in shares of Broadcom by 895.2% during the 4th quarter. Cardano Risk Management B.V. now owns 12,689,800 shares of the semiconductor manufacturer’s stock worth $4,391,940,000 after purchasing an additional 11,414,701 shares during the last quarter. Arrowstreet Capital Limited Partnership increased its stake in shares of Broadcom by 118.1% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 18,739,006 shares of the semiconductor manufacturer’s stock worth $5,799,889,000 after purchasing an additional 10,145,377 shares during the last quarter. State Street Corp increased its stake in shares of Broadcom by 2.7% during the 4th quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer’s stock worth $65,788,194,000 after purchasing an additional 5,040,801 shares during the last quarter. Finally, Vanguard Group Inc. increased its stake in shares of Broadcom by 0.8% during the 4th quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer’s stock worth $167,064,997,000 after purchasing an additional 3,919,715 shares during the last quarter. Institutional investors and hedge funds 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.