Broadcom (NASDAQ:AVGO) Trading Down 1.1% Following Insider Selling

Broadcom Inc. (NASDAQ:AVGO)’s share price fell 1.1% during trading on Wednesday following insider selling activity. The stock traded as low as $345.42 and last traded at $346.10. 15,249,717 shares changed hands during trading, a decline of 43% from the average session volume of 26,722,230 shares. The stock had previously closed at $349.85.

Specifically, insider Mark David Brazeal sold 25,921 shares of the company’s stock in a transaction dated Friday, December 26th. The shares were sold at an average price of $352.07, for a total transaction of $9,126,006.47. Following the sale, the insider directly owned 240,573 shares of the company’s stock, valued at $84,698,536.11. This represents a 9.73% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO Hock E. Tan sold 100,000 shares of the firm’s stock in a transaction dated Tuesday, December 23rd. The stock was sold at an average price of $345.65, for a total value of $34,565,000.00. Following the completion of the transaction, the chief executive officer owned 495,638 shares of the company’s stock, valued at approximately $171,317,274.70. This represents a 16.79% decrease in their position. The SEC filing for this sale provides additional information.

Analysts Set New Price Targets

Several research analysts have recently commented on the company. Cowen reissued a “buy” rating on shares of Broadcom in a report on Friday, December 12th. JPMorgan Chase & Co. lifted their price objective on Broadcom from $400.00 to $475.00 and gave the stock an “overweight” rating in a report on Friday, December 12th. Macquarie started coverage on shares of Broadcom in a report on Monday, September 15th. They set an “outperform” rating and a $420.00 price target for the company. Sanford C. Bernstein reaffirmed an “outperform” rating and set a $475.00 price target (up previously from $400.00) on shares of Broadcom in a research report on Friday, December 12th. Finally, UBS Group set a $475.00 target price on shares of Broadcom and gave the stock a “buy” rating in a research report on Monday, December 15th. Three analysts have rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has a consensus rating of “Buy” and a consensus target price of $436.33.

Key Stores Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: AI/data‑center demand and analyst upgrades underpin medium‑/long‑term upside — multiple firms have raised targets and reiterated Buy ratings, and commentary around the NVIDIA/Groq move highlights networking and inference infrastructure (Broadcom’s domain) as a major beneficiary. Read More.
• Positive Sentiment: ETF/sector flows and the AI cycle provide indirect support — pieces comparing SMH/SOXX note Broadcom as a direct beneficiary of the shift from AI training to inference, which can sustain order backlog and pricing power. Read More.
• Neutral Sentiment: Technical/momentum signals are mixed — some chart analysts say the rally may be losing directional momentum into year‑end, increasing the chance of short‑term volatility but not negating the longer‑term thesis. Read More.
• Neutral Sentiment: Some insider sales may be administrative/diversification — several late‑Dec Form 4 filings look like RSU tax withholding or planned diversification, which reduces but does not eliminate the negative optics. Read More.
• Negative Sentiment: Material CEO sale — CEO Hock E. Tan sold 100,000 shares (~$34.6M), a large discretionary sale that typically pressures sentiment and can trigger short‑term weakness even if proceeds are for diversification. Read More.
• Negative Sentiment: Other insider selling hits volume — additional officer sales (e.g., Mark Brazeal sold ~25,921 shares) add to the negative narrative and likely contributed to today’s downside. Read More.
• Negative Sentiment: Post‑earnings margin/guidance concerns remain a headwind — despite an earnings beat, investors have flagged non‑AI guidance and margin questions that can cap near‑term upside while the market digests order cadence. Read More.

Broadcom Trading Down 1.1%

The company has a debt-to-equity ratio of 0.76, a current ratio of 1.71 and a quick ratio of 1.58. The firm has a market capitalization of $1.64 trillion, a P/E ratio of 72.71, a price-to-earnings-growth ratio of 1.19 and a beta of 1.19. The stock’s 50-day simple moving average is $362.88 and its two-hundred day simple moving average is $326.38.

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

Broadcom Increases Dividend

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

Institutional Investors Weigh In On Broadcom

Large investors have recently added to or reduced their stakes in the stock. Norges Bank bought a new position in shares of Broadcom during the second quarter valued at approximately $18,579,549,000. Vanguard Group Inc. boosted its position in Broadcom by 1.3% during the second quarter. Vanguard Group Inc. now owns 483,442,939 shares of the semiconductor manufacturer’s stock valued at $133,261,046,000 after purchasing an additional 6,222,802 shares in the last quarter. Edgewood Management LLC purchased a new position in Broadcom in the second quarter valued at about $1,571,438,000. Arrowstreet Capital Limited Partnership raised its stake in shares of Broadcom by 499.4% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 5,634,232 shares of the semiconductor manufacturer’s stock worth $1,858,789,000 after acquiring an additional 4,694,313 shares in the last quarter. Finally, Alliancebernstein L.P. grew its holdings in Broadcom by 16.0% in the first quarter. Alliancebernstein L.P. now owns 29,513,814 shares of the semiconductor manufacturer’s stock worth $4,941,498,000 after purchasing an additional 4,077,910 shares during the last quarter. 76.43% of the stock is owned by institutional investors.

About Broadcom

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.