Broadcom (NASDAQ:AVGO) Shares Down 2.1% – Here’s What Happened

Broadcom Inc. (NASDAQ:AVGO)’s stock price dropped 2.1% during trading on Thursday. The company traded as low as $343.29 and last traded at $343.64. Approximately 22,211,726 shares changed hands during mid-day trading, a decline of 12% from the average daily volume of 25,103,633 shares. The stock had previously closed at $351.19.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom has agreed to provide Anthropic with up to $42 billion in financing to lease Broadcom chips and fund the AI company’s infrastructure expansion. The facility could cover roughly one-third of Anthropic’s $125.2 billion, five-year commitment for TPU computing capacity, creating a potentially significant source of future chip demand. Broadcom to lend Anthropic up to $42 billion to lease its chips
• Positive Sentiment: Anthropic could become Broadcom’s largest customer next year, while the arrangement also includes chip supply and equipment leasing. Investors may view the deal as evidence that Broadcom is becoming deeply embedded in the rapidly expanding AI infrastructure market. Broadcom Stock Rises. Anthropic and Broadcom Are Becoming More Intertwined.
• Neutral Sentiment: The financing may be convertible into Anthropic shares, giving Broadcom potential equity upside but also making the deal’s value dependent on Anthropic’s future growth and any IPO outcome. Broadcom to provide Anthropic with up to $42 billion in financing
• Negative Sentiment: Investors are concerned about credit exposure and customer concentration. Reports cite Anthropic’s $161.2 billion in Broadcom lease obligations and $518 billion in total infrastructure commitments, raising questions about whether Anthropic can support its spending plans. If Anthropic’s growth or financing deteriorates, Broadcom could face repayment, utilization, or concentration risks. Broadcom’s AI Growth Story Faces a $161 Billion Anthropic Test

Wall Street Analysts Forecast Growth

A number of research firms have recently issued reports on AVGO. BNP Paribas Exane raised their price target on Broadcom from $675.00 to $715.00 and gave the stock an “outperform” rating in a research note on Friday, September 4th. Royal Bank Of Canada started coverage on Broadcom in a report on Thursday, September 3rd. They issued an “outperform” rating on the stock. Piper Sandler initiated coverage on Broadcom in a research report on Wednesday, September 9th. They issued an “overweight” rating and a $460.00 target price on the stock. Citic Securities raised shares of Broadcom to a “buy” rating and upped their price target for the company from $450.00 to $525.00 in a research report on Tuesday, September 8th. Finally, Jefferies Financial Group initiated coverage on shares of Broadcom in a research note on Thursday, September 3rd. They issued a “buy” rating and a $550.00 price objective on the stock. One research analyst has rated the stock with a Strong Buy rating, thirty-seven have given a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat, Broadcom has a consensus rating of “Moderate Buy” and a consensus price target of $527.20.

Broadcom Trading Down 2.1%

The firm has a market capitalization of $1.64 trillion, a P/E ratio of 43.89 and a beta of 1.44. 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 has a fifty day simple moving average of $374.25 and a 200 day simple moving average of $380.70.

Broadcom (NASDAQ:AVGO) last posted its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 EPS for the quarter, topping analysts’ consensus estimates of $3.22 by $0.10. The company had revenue of $29.59 billion for the quarter, compared to analysts’ expectations of $29.24 billion. Broadcom had a return on equity of 48.33% and a net margin of 42.94%.The firm’s revenue was up 85.5% compared to the same quarter last year. During the same period in the previous year, the firm earned $1.69 EPS. As a group, research analysts forecast that Broadcom Inc. will post 10.36 EPS for the current year.

Broadcom Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st were issued a $0.65 dividend. This represents a $2.60 annualized dividend and a dividend yield of 0.8%. The ex-dividend date of this dividend was Monday, September 21st. Broadcom’s payout ratio is 33.21%.

Insider Buying and Selling

In other Broadcom news, insider Mark Brazeal sold 25,000 shares of the firm’s stock in a transaction that occurred on Friday, July 10th. The stock was sold at an average price of $401.33, for a total transaction of $10,033,250.00. Following the completion of the transaction, the insider owned 194,989 shares in the company, valued at $78,254,935.37. This trade represents a 11.36% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, Director Gayla Delly sold 1,890 shares of the company’s stock in a transaction that occurred on Wednesday, July 8th. The stock was sold at an average price of $385.38, for a total value of $728,368.20. Following the sale, the director directly owned 31,326 shares in the company, valued at $12,072,413.88. This trade represents a 5.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 51,890 shares of company stock valued at $20,241,368. 1.90% of the stock is owned by corporate insiders.

Institutional Trading of Broadcom

Several hedge funds and other institutional investors have recently bought and sold shares of AVGO. Fullerton Advisors LLC lifted its holdings in Broadcom by 1.3% in the first 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 lifted its position in shares of Broadcom by 0.5% during the 1st 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 last quarter. RFG Holdings Inc. lifted its holdings in shares of Broadcom by 0.3% during 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 last quarter. Yukon Wealth Management Inc. boosted its holdings in shares of Broadcom by 1.1% in the first quarter. Yukon Wealth Management Inc. now owns 2,501 shares of the semiconductor manufacturer’s stock worth $774,000 after buying an additional 26 shares during the period. Finally, NerdWallet Wealth Partners LLC boosted its stake in Broadcom by 2.6% in the 2nd quarter. NerdWallet Wealth Partners LLC now owns 1,057 shares of the semiconductor manufacturer’s stock worth $399,000 after purchasing an additional 27 shares during the period. Hedge funds and other 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 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.