Broadcom (NASDAQ:AVGO) Shares Down 2% – Time to Sell?

Broadcom Inc. (NASDAQ:AVGO) shares traded down 2% during trading on Wednesday. The company traded as low as $321.74 and last traded at $325.6030. 23,697,841 shares were traded during mid-day trading, a decline of 4% from the average daily volume of 24,768,152 shares. The stock had previously closed at $332.13.

Key Stories Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom’s AI semiconductor revenue reached $16.7 billion, above its $16 billion target, and management expects further growth next quarter—evidence that demand remains robust despite competition. Is Broadcom Stock a Buy Now?
• Positive Sentiment: ETFs purchased $267.7 million of AVGO shares on Nov. 2, a supportive signal of institutional fund flows. 53 ETFs Add to Broadcom Holdings
• Positive Sentiment: Several reports point to substantial AI growth potential, including claims that Anthropic and OpenAI could become Broadcom’s two largest customers. One Wall Street Analyst Says This Stock Is the Best Way to Invest in Anthropic and OpenAI
• Negative Sentiment: Valuation remains a potential headwind: some commentary argues the shares may be expensive, while Broadcom’s custom-chip opportunity depends on customers continuing to invest in their own processors. Broadcom: Great Company, Not A Great Price Taiwan Semi or Broadcom

Analysts Set New Price Targets

A number of research firms recently issued reports on AVGO. Tigress Financial started coverage on Broadcom in a report on Thursday, October 22nd. They set a “buy” rating and a $600.00 target price on the stock. Jefferies Financial Group assumed coverage on shares of Broadcom in a research report on Thursday, September 3rd. They issued a “buy” rating and a $550.00 price target on the stock. Bank of America cut their price target on shares of Broadcom from $530.00 to $460.00 and set a “buy” rating for the company in a report on Thursday, September 3rd. Citigroup lowered shares of Broadcom from a “buy” rating to a “neutral” rating in a research report on Tuesday, October 27th. Finally, UBS Group downgraded shares of Broadcom from a “hold” rating to a “neutral” rating in a report on Tuesday, October 27th. One equities research analyst has rated the stock with a Strong Buy rating, thirty-nine have given a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat, Broadcom presently has a consensus rating of “Moderate Buy” and an average target price of $530.52.

Broadcom Stock Down 2.0%

The business has a 50-day moving average price of $351.35 and a 200-day moving average price of $366.76. The company has a market capitalization of $1.55 trillion, a price-to-earnings ratio of 41.58 and a beta of 1.49. The company has a quick ratio of 2.29, a current ratio of 2.50 and a debt-to-equity ratio of 0.57.

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

Broadcom Announces Dividend

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

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in AVGO. State Street Corp increased its holdings in shares of Broadcom by 8.7% in the 2nd quarter. State Street Corp now owns 208,031,610 shares of the semiconductor manufacturer’s stock valued at $75,367,711,000 after purchasing an additional 16,651,378 shares during the period. Bank of America Corp DE lifted its position in shares of Broadcom by 4.6% in the second quarter. Bank of America Corp DE now owns 61,423,013 shares of the semiconductor manufacturer’s stock worth $23,202,543,000 after purchasing an additional 2,685,916 shares in the last quarter. Wellington Management Group LLP boosted its holdings in shares of Broadcom by 3.8% during the second quarter. Wellington Management Group LLP now owns 51,580,703 shares of the semiconductor manufacturer’s stock worth $19,484,611,000 after purchasing an additional 1,892,721 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in shares of Broadcom by 2.9% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 40,180,530 shares of the semiconductor manufacturer’s stock worth $15,178,195,000 after purchasing an additional 1,140,598 shares during the period. Finally, Legal & General Group Plc acquired a new stake in shares of Broadcom during the second quarter worth approximately $11,998,148,000. 76.43% of the stock is owned by hedge funds and other institutional investors.

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 data center, networking, broadband, wireless communications, storage, industrial and other electronic applications.

The company’s semiconductor portfolio includes networking and switching components, custom accelerators, connectivity and wireless devices, broadband equipment, optical products, storage controllers and related infrastructure technologies.