Broadcom (NASDAQ:AVGO) Stock Price Down 2.7% – Time to Sell?

Broadcom Inc. (NASDAQ:AVGO) shares were down 2.7% during mid-day trading on Friday . The stock traded as low as $378.75 and last traded at $381.92. Approximately 14,621,598 shares traded hands during trading, a decline of 43% from the average daily volume of 25,807,682 shares. The stock had previously closed at $392.47.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Multiple articles frame Broadcom as a leading AI infrastructure beneficiary, suggesting investors still see room for growth and continued demand for its networking and custom chip solutions.
• Positive Sentiment: A new market commentary says TSMC’s planned price hikes may highlight Broadcom’s pricing power, since Broadcom is considered one of the larger AI chip players with enough scale to pass along higher manufacturing costs. Article Title
• Positive Sentiment: Broadcom was included in a list of high-ROE stocks to buy, which reinforces the investment case around strong profitability and cash generation. Article Title
• Neutral Sentiment: Some articles are more general market or sector commentary, including writeups on semiconductor ETFs and Broadcom’s year-to-date performance versus other technology names, which may support sentiment but do not add much new company-specific news. Article Title
• Neutral Sentiment: An investment note highlighting an institutional stake increase in Broadcom adds confidence, but it is not a major fundamental catalyst by itself. Article Title

Analysts Set New Price Targets

A number of analysts have recently commented on the stock. Dbs Bank raised shares of Broadcom to a “moderate buy” rating in a research note on Thursday, June 18th. Morgan Stanley set a $502.00 price target on shares of Broadcom and gave the company an “overweight” rating in a research note on Thursday, June 4th. Citigroup reiterated a “buy” rating on shares of Broadcom in a report on Thursday, June 4th. The Goldman Sachs Group reiterated a “buy” rating and set a $525.00 price objective on shares of Broadcom in a research note on Thursday, June 4th. Finally, Jefferies Financial Group set a $550.00 target price on Broadcom and gave the company a “buy” rating in a report on Thursday, June 4th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $493.24.

Broadcom Stock Performance

The company has a market cap of $1.82 trillion, a PE ratio of 63.65, a PEG ratio of 0.76 and a beta of 1.45. The company has a debt-to-equity ratio of 0.71, a quick ratio of 2.01 and a current ratio of 2.24. The firm’s 50 day moving average is $398.28 and its 200-day moving average is $366.58.

Broadcom (NASDAQ:AVGO) last released its quarterly earnings data on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, beating analysts’ consensus estimates of $2.40 by $0.04. The company had revenue of $22.19 billion during the quarter, compared to the consensus estimate of $22.13 billion. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. Broadcom’s quarterly revenue was up 47.9% on a year-over-year basis. During the same quarter in the prior year, the firm earned $1.58 EPS. On average, research analysts anticipate that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 22nd were issued a $0.65 dividend. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend was Monday, June 22nd. Broadcom’s dividend payout ratio (DPR) is currently 43.33%.

Insider Buying and Selling

In related news, Director Harry L. You bought 1,000 shares of the company’s stock in a transaction on Thursday, June 11th. The stock was bought at an average cost of $373.57 per share, for a total transaction of $373,570.00. Following the acquisition, the director directly owned 38,466 shares in the company, valued at $14,369,743.62. This represents a 2.67% increase in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, insider Mark David Brazeal sold 25,000 shares of the firm’s stock in a transaction on Friday, July 10th. The stock was sold at an average price of $401.33, for a total value of $10,033,250.00. Following the completion of the sale, the insider directly owned 194,989 shares of the company’s stock, valued at $78,254,935.37. This trade represents a 11.36% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 61,644 shares of company stock worth $24,016,214. 1.90% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Broadcom

A number of hedge funds have recently modified their holdings of AVGO. Norges Bank purchased a new stake in shares of Broadcom in the 4th quarter valued at approximately $24,252,196,000. Cardano Risk Management B.V. raised its position in shares of Broadcom by 895.2% during the 4th quarter. Cardano Risk Management B.V. now owns 12,689,800 shares of the semiconductor manufacturer’s stock valued at $4,391,940,000 after buying an additional 11,414,701 shares during the period. Arrowstreet Capital Limited Partnership raised its position in shares of Broadcom by 118.1% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 18,739,006 shares of the semiconductor manufacturer’s stock valued at $5,799,889,000 after buying an additional 10,145,377 shares during the period. State Street Corp grew its position in Broadcom by 2.7% in the fourth quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer’s stock worth $65,788,194,000 after acquiring an additional 5,040,801 shares during the period. Finally, Vanguard Group Inc. grew its position in Broadcom by 0.8% in the fourth quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer’s stock worth $167,064,997,000 after acquiring an additional 3,919,715 shares during the period. Hedge funds and other institutional investors own 76.43% of the company’s stock.

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.