Broadcom (NASDAQ:AVGO) Stock Price Down 1.8% – Here’s What Happened

Broadcom Inc. (NASDAQ:AVGO) dropped 1.8% during mid-day trading on Friday . The stock traded as low as $324.69 and last traded at $325.17. Approximately 18,187,485 shares changed hands during trading, a decline of 31% from the average daily volume of 26,497,113 shares. The stock had previously closed at $331.17.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Cathie Wood’s ARK filed a meaningful purchase (~87,148 shares), signaling institutional conviction in Broadcom’s exposure to AI infrastructure. Broadcom Inc. (AVGO) Draws ARK Investment Amid Positive AI Growth Outlook
• Positive Sentiment: Mirova US LLC materially increased its Broadcom stake, adding another institutional buyer to demand-side flows. Mirova US LLC Boosts Broadcom Stake by 589,713 Shares
• Positive Sentiment: Broadcom unveiled a Wi‑Fi 8 enterprise platform positioned for AI edge and enterprise networking — a product catalyst that could expand TAM for its networking chips. Broadcom Wi Fi 8 Launch Highlights AI Network Demand And Valuation Questions
• Positive Sentiment: Analysts and commentary are bullish on upside linked to hyperscaler CapEx (Google, Meta) and the AI infrastructure cycle — Forbes lays out a bull case toward ~$450 if demand trajectory holds. Here’s How AVGO Stock Could Rise To $450
• Neutral Sentiment: DA Davidson initiated coverage with a Neutral rating — a reminder that some sell-side views see limited near-term upside despite the AI backdrop. DA Davidson initiates coverage of Broadcom (AVGO) with neutral recommendation
• Negative Sentiment: Coverage and market commentary around the Wi‑Fi 8 launch also flagged valuation concerns — investors are debating whether Broadcom’s premium multiple already prices in the AI upside. Broadcom Wi Fi 8 Launch Highlights AI Network Demand And Valuation Questions
• Negative Sentiment: Some institutional managers trimmed positions (PRIMECAP, Randolph, SCS Capital reported cuts), creating localized selling pressure even as others added shares. PRIMECAP Management Co Cuts Broadcom Stake by 27,980 Shares

Wall Street Analyst Weigh In

AVGO has been the topic of a number of research analyst reports. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Broadcom in a report on Monday, December 29th. Bank of America lifted their target price on Broadcom from $460.00 to $500.00 and gave the company a “buy” rating in a research report on Friday, December 12th. JPMorgan Chase & Co. boosted their target price on Broadcom from $400.00 to $475.00 and gave the stock an “overweight” rating in a research note on Friday, December 12th. Benchmark raised their price objective on Broadcom from $385.00 to $485.00 and gave the company a “buy” rating in a report on Friday, December 12th. Finally, Citigroup reissued a “buy” rating on shares of Broadcom in a report on Thursday, January 15th. Two equities research analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Buy” and an average target price of $433.87.

Broadcom Stock Performance

The company has a quick ratio of 1.58, a current ratio of 1.71 and a debt-to-equity ratio of 0.76. The company’s 50 day moving average is $345.18 and its 200-day moving average is $340.01. The firm has a market capitalization of $1.54 trillion, a P/E ratio of 68.31, a price-to-earnings-growth ratio of 1.11 and a beta of 1.21.

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

Broadcom Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, December 31st. Investors of record on Monday, December 22nd were given a $0.65 dividend. This represents a $2.60 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend was Monday, December 22nd. This is a positive change from Broadcom’s previous quarterly dividend of $0.59. Broadcom’s payout ratio is 54.62%.

Insider Buying and Selling

In other Broadcom news, CEO Hock E. Tan sold 130,000 shares of Broadcom stock in a transaction that occurred on Thursday, December 18th. The shares were sold at an average price of $326.02, for a total transaction of $42,382,600.00. Following the transaction, the chief executive officer owned 595,638 shares of the company’s stock, valued at $194,189,900.76. This trade represents a 17.92% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Kirsten M. Spears sold 30,000 shares of Broadcom stock in a transaction on Wednesday, December 31st. The stock was sold at an average price of $347.82, for a total value of $10,434,600.00. Following the sale, the chief financial officer owned 277,237 shares in the company, valued at $96,428,573.34. This trade represents a 9.76% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 779,101 shares of company stock worth $283,804,325 in the last ninety days. Corporate insiders own 2.00% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Assetmark Inc. raised its holdings in shares of Broadcom by 2.4% during the second quarter. Assetmark Inc. now owns 1,703,487 shares of the semiconductor manufacturer’s stock valued at $469,566,000 after purchasing an additional 39,466 shares during the last quarter. Capital Counsel LLC NY purchased a new position in Broadcom during the second quarter worth $221,000. Waterloo Capital L.P. increased its stake in Broadcom by 7.0% in the second quarter. Waterloo Capital L.P. now owns 48,361 shares of the semiconductor manufacturer’s stock worth $13,331,000 after purchasing an additional 3,180 shares during the period. Providence First Trust Co lifted its holdings in shares of Broadcom by 1,099.3% in the 3rd quarter. Providence First Trust Co now owns 8,923 shares of the semiconductor manufacturer’s stock worth $2,944,000 after buying an additional 8,179 shares during the period. Finally, RiverFront Investment Group LLC increased its holdings in shares of Broadcom by 107.6% in the 2nd quarter. RiverFront Investment Group LLC now owns 16,524 shares of the semiconductor manufacturer’s stock valued at $4,555,000 after acquiring an additional 8,566 shares during the period. 76.43% of the stock is owned by institutional investors.

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.