Broadcom (NASDAQ:AVGO) Trading Down 2.9% – Should You Sell?

Broadcom Inc. (NASDAQ:AVGO) fell 2.9% during trading on Friday . The company traded as low as $309.92 and last traded at $310.51. 42,692,657 shares changed hands during trading, an increase of 58% from the average session volume of 27,077,104 shares. The stock had previously closed at $319.84.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Strong AI demand and upbeat guidance: Q1 revenue growth and management commentary point to accelerating hyperscaler spending on Broadcom’s AI silicon and networking, supporting near‑term top‑line momentum. Broadcom Stock: Buy, Sell, or Hold?
• Positive Sentiment: Commercialization milestone — Tomahawk‑6 production shipping: Broadcom has begun production‑volume shipments of the industry’s first 102.4 Tbps switch, which can drive immediate revenue in AI networking racks and defend market share. Broadcom (AVGO) Commences Production Volume Shipping of World’s First 102.4 Tbps Switch
• Positive Sentiment: New security and optics products expand TAM: Broadcom is shipping a PQC‑safe, in‑flight network encryption solution and showcased 400G optical/3.5D XPU advances — product diversification that supports longer‑term software and hardware revenue streams. How The Broadcom (AVGO) Investment Story Is Shifting With AI Hopes And Valuation Doubts
• Neutral Sentiment: Analyst views are active but mixed — multiple price‑target hikes coexist with cautious notes, creating two‑sided trading flow and volatility around sentiment rather than fundamentals. Broadcom Inc. (AVGO) is Attracting Investor Attention
• Negative Sentiment: Clustered insider selling: several senior Broadcom executives (including the CFO and other officers) sold large blocks of shares on March 16–17, which is pressuring near‑term sentiment despite being legally disclosed, taxable or diversification sales. Kirsten M. Spears Form 4 (SEC)
• Negative Sentiment: Regulatory/regional risk: a European cloud‑provider group has urged EU regulators to seek interim measures tied to Broadcom’s changes to VMware programs in Europe, adding short‑term legal/regulatory uncertainty. Cloud industry group calls for EU interim measure against Broadcom over VMware
• Negative Sentiment: Meta MTIA detail shortfall: Meta confirmed Broadcom as a custom‑chip partner for MTIA inference chips but omitted a training‑class chip in its announcement, which limits immediate upside from the highest‑value training segment. Why Meta’s AI Chip Announcement Has Broadcom Investors Paying Attention

Wall Street Analyst Weigh In

AVGO has been the subject of a number of research analyst reports. DA Davidson upgraded Broadcom to a “hold” rating in a research report on Friday, February 13th. Oppenheimer boosted their price objective on Broadcom from $435.00 to $450.00 and gave the stock an “outperform” rating in a research note on Friday, December 12th. JPMorgan Chase & Co. lifted their target price on Broadcom from $475.00 to $500.00 and gave the stock an “overweight” rating in a report on Thursday, March 5th. Rosenblatt Securities upped their price target on shares of Broadcom from $450.00 to $500.00 and gave the company a “buy” rating in a report on Thursday, March 5th. Finally, Wells Fargo & Company upgraded shares of Broadcom from an “equal weight” rating to an “overweight” rating and raised their price objective for the company from $410.00 to $430.00 in a research report on Thursday, January 15th. One research analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and three have given a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $435.30.

Broadcom Stock Down 2.9%

The company has a market capitalization of $1.47 trillion, a price-to-earnings ratio of 60.65, a price-to-earnings-growth ratio of 0.68 and a beta of 1.22. The company has a quick ratio of 1.73, a current ratio of 1.90 and a debt-to-equity ratio of 0.80. The business has a 50-day moving average price of $331.12 and a 200-day moving average price of $344.89.

Broadcom (NASDAQ:AVGO) last issued its quarterly earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share for the quarter, topping analysts’ consensus estimates of $2.03 by $0.02. The firm had revenue of $19.31 billion for the quarter, compared to analysts’ expectations of $19.10 billion. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.Broadcom’s revenue was up 29.5% on a year-over-year basis. During the same quarter last year, the business posted $1.60 EPS. As a group, equities analysts anticipate that Broadcom Inc. will post 5.38 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Monday, March 23rd will be given a dividend of $0.65 per share. The ex-dividend date is Monday, March 23rd. This represents a $2.60 dividend on an annualized basis and a yield of 0.8%. Broadcom’s dividend payout ratio (DPR) is presently 50.78%.

Insider Buying and Selling at Broadcom

In other news, insider S. Ram Velaga sold 38,841 shares of the company’s stock in a transaction on Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total value of $12,491,265.60. Following the transaction, the insider directly owned 96,147 shares of the company’s stock, valued at approximately $30,920,875.20. This represents a 28.77% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Charlie B. Kawwas sold 39,116 shares of the stock in a transaction on Tuesday, March 17th. The stock was sold at an average price of $321.61, for a total value of $12,580,096.76. Following the sale, the insider owned 74,626 shares of the company’s stock, valued at approximately $24,000,467.86. This represents a 34.39% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 528,970 shares of company stock valued at $177,150,321 in the last 90 days. Corporate insiders own 1.90% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the company. ROSS JOHNSON & Associates LLC increased its stake in shares of Broadcom by 1,320.0% during the 4th quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer’s stock worth $25,000 after purchasing an additional 66 shares during the last quarter. SWAN Capital LLC boosted its position in Broadcom by 261.9% during the fourth quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer’s stock worth $26,000 after purchasing an additional 55 shares during the period. Longfellow Investment Management Co. LLC bought a new stake in Broadcom during the second quarter worth approximately $27,000. Teachers Insurance & Annuity Association of America acquired a new position in Broadcom during the second quarter valued at approximately $28,000. Finally, JCIC Asset Management Inc. bought a new position in shares of Broadcom in the third quarter valued at approximately $31,000. 76.43% of the stock is owned by institutional investors and hedge funds.

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.