Broadcom (NASDAQ:AVGO) Shares Down 1.8% – What’s Next?

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

Key Headlines Impacting Broadcom

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

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on the stock. Citigroup restated a “buy” rating on shares of Broadcom in a research report on Thursday, January 15th. Robert W. Baird set a $420.00 price target on shares of Broadcom in a research note on Friday, December 12th. Oppenheimer upped their price objective on shares of Broadcom from $435.00 to $450.00 and gave the company an “outperform” rating in a research note on Friday, December 12th. Wall Street Zen upgraded Broadcom from a “hold” rating to a “buy” rating in a research report on Saturday, December 13th. Finally, KeyCorp reissued an “overweight” rating and issued a $500.00 target price (up from $460.00) on shares of Broadcom in a research report on Friday, December 12th. Two analysts have rated the stock with a Strong Buy rating, thirty have given a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, Broadcom has an average rating of “Buy” and a consensus target price of $433.87.

Broadcom Stock Down 1.8%

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’s 50 day moving average price is $343.88 and its two-hundred day moving average price is $340.53. The firm has a market cap of $1.54 trillion, a price-to-earnings ratio of 68.31, a P/E/G ratio of 1.05 and a beta of 1.21.

Broadcom (NASDAQ:AVGO) last posted its quarterly earnings data on Thursday, December 11th. The semiconductor manufacturer reported $1.95 EPS for the quarter, beating the consensus estimate of $1.87 by $0.08. Broadcom had a return on equity of 37.45% and a net margin of 36.20%.The firm had revenue of $18.02 billion during 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 was up 28.2% compared to the same quarter last year. As a group, sell-side analysts forecast that Broadcom Inc. will post 5.38 earnings per share for the current fiscal year.

Broadcom Increases Dividend

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

Insider Activity

In other Broadcom news, CFO Kirsten M. Spears sold 30,000 shares of the company’s stock in a transaction on Wednesday, December 31st. The shares were sold at an average price of $347.82, for a total transaction of $10,434,600.00. Following the completion of the transaction, the chief financial officer owned 277,237 shares in the company, valued at approximately $96,428,573.34. This represents a 9.76% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO Hock E. Tan sold 130,000 shares of Broadcom stock in a transaction dated 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 completion of the sale, the chief executive officer directly owned 595,638 shares in the company, valued at approximately $194,189,900.76. The trade was a 17.92% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 779,101 shares of company stock valued at $283,804,325. 2.00% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Broadcom

Large investors have recently modified their holdings of the business. Arete Wealth Advisors LLC boosted its stake in shares of Broadcom by 5.0% in the fourth quarter. Arete Wealth Advisors LLC now owns 42,162 shares of the semiconductor manufacturer’s stock valued at $14,593,000 after buying an additional 1,998 shares in the last quarter. Jacobi Capital Management LLC lifted its holdings in Broadcom by 3.1% in the fourth quarter. Jacobi Capital Management LLC now owns 13,892 shares of the semiconductor manufacturer’s stock valued at $4,808,000 after acquiring an additional 418 shares during the period. Cordoba Advisory Partners LLC purchased a new stake in shares of Broadcom during the 4th quarter worth $352,000. Burton Enright Welch acquired a new position in shares of Broadcom during the 4th quarter worth $3,871,000. Finally, Harvard Management Co. Inc. increased its holdings in shares of Broadcom by 222.1% in the 4th quarter. Harvard Management Co. Inc. now owns 321,766 shares of the semiconductor manufacturer’s stock valued at $111,363,000 after purchasing an additional 221,866 shares in the last quarter. 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 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.