Broadcom (NASDAQ:AVGO) Shares Down 1.3% – Here’s What Happened

Broadcom Inc. (NASDAQ:AVGO)’s stock price traded down 1.3% during trading on Monday . The stock traded as low as $420.16 and last traded at $422.40. 13,770,341 shares changed hands during trading, a decline of 46% from the average daily volume of 25,359,602 shares. The stock had previously closed at $427.76.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom expanded VMware Cloud Foundation security with faster vDefend deployment, on-premises malware sandboxing and API protection. The upgrades could improve VMware’s competitiveness against Nutanix and IBM while supporting growth in high-margin infrastructure software. Broadcom Boosts VCF Security: Can it Fend Off Nutanix and IBM?
• Positive Sentiment: Broadcom’s custom AI accelerator positioning remains a major bullish argument. AI semiconductor revenue has more than doubled year over year and is expected to grow sharply again, helping the company outperform some larger semiconductor peers. Top Semiconductor Stock Outpacing Nvidia With a 36% Gain Over 6 Months
• Positive Sentiment: Erste Group Bank raised its fiscal 2027 EPS estimate, while the broader brokerage consensus remains “Moderate Buy.” These updates indicate that analysts continue to expect durable earnings growth. Broadcom FY2027 EPS Estimate Increased by Erste Group Bank Broadcom Inc. Given Consensus Rating of Moderate Buy by Brokerages
• Positive Sentiment: Recent commentary points to demand from both hyperscale cloud customers and enterprise buyers, reinforcing the investment case for Broadcom’s diversified AI, networking and software businesses. Broadcom: Cloud Scale Meets Enterprise Demand
• Neutral Sentiment: One comparison article focuses on AVGO’s performance relative to Avnet and the broader technology sector, offering context rather than a new company-specific catalyst. Is Avnet Stock Outpacing Its Computer and Technology Peers This Year?
• Negative Sentiment: A potential FCC restriction on Chinese optical transceivers could create data-center supply-chain friction. While competitors such as Lumentum and Coherent may benefit, the broader uncertainty could weigh on Broadcom and other AI-infrastructure suppliers. AI Cold War Catches Light: Federal Friction in the Server Rack

Analyst Upgrades and Downgrades

AVGO has been the subject of several research analyst reports. JPMorgan Chase & Co. lifted their price objective on Broadcom from $500.00 to $580.00 and gave the company an “overweight” rating in a research note on Thursday, June 4th. Susquehanna restated a “positive” rating and issued a $490.00 target price (up from $450.00) on shares of Broadcom in a research note on Thursday, May 28th. Evercore reaffirmed an “outperform” rating and issued a $582.00 price target on shares of Broadcom in a report on Tuesday, May 19th. Bank of America lifted their price target on Broadcom from $450.00 to $530.00 and gave the company a “buy” rating in a research report on Thursday, June 4th. Finally, TD Cowen reissued a “buy” rating and set a $500.00 price objective on shares of Broadcom in a report on Thursday, June 4th. Twenty-eight research analysts have rated the stock with a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $493.24.

Broadcom Trading Down 1.3%

The stock has a 50 day moving average of $392.99 and a 200 day moving average of $370.59. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 2.01. The firm has a market cap of $2.01 trillion, a P/E ratio of 70.40, a PEG ratio of 0.82 and a beta of 1.45.

Broadcom (NASDAQ:AVGO) last issued its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.40 by $0.04. The firm had revenue of $22.19 billion during the quarter, compared to analyst estimates of $22.13 billion. Broadcom had a return on equity of 41.61% and a net margin of 38.85%.The company’s revenue was up 47.9% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.58 earnings per share. As a group, equities research analysts predict that Broadcom Inc. will post 10.24 EPS for the current year.

Broadcom Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd were given a dividend of $0.65 per share. This represents a $2.60 annualized dividend and a yield of 0.6%. The ex-dividend date was Monday, June 22nd. Broadcom’s dividend payout ratio is presently 43.33%.

Insider Buying and Selling

In related news, insider Mark David 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 transaction, the insider directly 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 legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Harry L. You bought 1,000 shares of the business’s stock in a transaction dated Thursday, June 11th. The stock was purchased at an average price of $373.57 per share, for a total transaction of $373,570.00. Following the acquisition, the director directly owned 38,466 shares of the company’s stock, valued at approximately $14,369,743.62. The trade was a 2.67% increase in their position. Additional details regarding this purchase are available in the official SEC disclosure. Over the last quarter, insiders have sold 61,644 shares of company stock valued at $24,016,214. 1.90% of the stock is owned by insiders.

Institutional Trading of Broadcom

Several large investors have recently added to or reduced their stakes in the stock. Norges Bank bought a new position in Broadcom in the fourth quarter worth $24,252,196,000. Bank of New York Mellon Corp bought a new stake in shares of Broadcom during the 2nd quarter valued at $10,528,191,000. Deutsche Bank AG purchased a new stake in shares of Broadcom in the 2nd quarter worth about $5,661,216,000. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new stake in shares of Broadcom in the 2nd quarter worth about $4,457,583,000. Finally, Cardano Risk Management B.V. increased its stake in shares of Broadcom by 895.2% in 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 acquiring an additional 11,414,701 shares in the last quarter. 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.