Broadcom (NASDAQ:AVGO) Stock Price Down 4.8% on Analyst Downgrade

Broadcom Inc. (NASDAQ:AVGO)’s share price dropped 4.8% during mid-day trading on Friday after Rothschild & Co Redburn downgraded the stock from a buy rating to a neutral rating. Rothschild & Co Redburn now has a $398.00 price target on the stock, down from their previous price target of $595.00. Broadcom traded as low as $337.67 and last traded at $347.01. 31,384,834 shares traded hands during trading, an increase of 25% from the average session volume of 25,192,787 shares. The stock had previously closed at $364.36.

Several other equities analysts also recently commented on AVGO. Weiss Ratings downgraded shares of Broadcom from a “buy (b)” rating to a “buy (b-)” rating in a report on Wednesday. Arete Research raised their target price on shares of Broadcom from $488.00 to $530.00 and gave the stock a “buy” rating in a research note on Tuesday, July 21st. UBS Group downgraded shares of Broadcom from a “hold” rating to a “neutral” rating in a report on Tuesday, October 27th. William Blair lowered shares of Broadcom from an “outperform” rating to a “market perform” rating in a research note on Tuesday, October 27th. Finally, JPMorgan Chase & Co. reiterated a “buy” rating on shares of Broadcom in a research note on Thursday, September 3rd. One equities research analyst has rated the stock with a Strong Buy rating, thirty-eight have given a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat, Broadcom has an average rating of “Moderate Buy” and an average target price of $525.19.

Broadcom News Roundup

Here’s some of the latest news about AVGO:

• Positive Sentiment: Despite its downgrade, Rothschild & Co Redburn’s new $398 price target remains above the stock’s recent level; other Wall Street analysts also see potential upside. Wall Street Still Sees $533
• Neutral Sentiment: Recent buying by ETFs offers a modest supportive signal, but it does not counter the concerns driving today’s selling. ETFs Are Buying Broadcom
• Negative Sentiment: Rothschild & Co Redburn cut its rating on Broadcom from Buy to Neutral and lowered its target by 33%, from $595 to $398. It cited growing exposure to AI financing arrangements and concerns that major AI startups, including Anthropic and OpenAI, may take time to become self-funding—potentially putting the pace or reliability of their spending at risk. Broadcom Downgrade Flags AI Financing Risks

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in AVGO. Core Capital Management & Research inc. acquired a new stake in Broadcom in the 2nd quarter worth about $31,000. DecisionPoint Financial LLC grew its position in shares of Broadcom by 101.9% during the 3rd quarter. DecisionPoint Financial LLC now owns 105 shares of the semiconductor manufacturer’s stock worth $36,000 after purchasing an additional 53 shares in the last quarter. Harborfront Financial Group LLC acquired a new position in shares of Broadcom during the 2nd quarter worth approximately $38,000. Align Financial LLC increased its holdings in shares of Broadcom by 67.2% during the third quarter. Align Financial LLC now owns 112 shares of the semiconductor manufacturer’s stock worth $38,000 after purchasing an additional 45 shares during the period. Finally, Curry Webb Wealth Management LLC bought a new position in shares of Broadcom during the third quarter worth approximately $41,000. Institutional investors own 76.43% of the company’s stock.

Broadcom Trading Down 4.8%

The company has a debt-to-equity ratio of 0.57, a current ratio of 2.50 and a quick ratio of 2.29. The business’s 50-day moving average price is $345.59 and its two-hundred day moving average price is $366.48. The company has a market capitalization of $1.66 trillion, a price-to-earnings ratio of 44.32 and a beta of 1.49.

Broadcom (NASDAQ:AVGO) last issued its quarterly earnings results on Wednesday, September 2nd. The semiconductor manufacturer reported $3.32 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.22 by $0.10. Broadcom had a return on equity of 48.33% and a net margin of 42.94%. The business had revenue of $29.59 billion during the quarter, compared to analysts’ expectations of $29.24 billion. During the same period in the previous year, the company posted $1.69 earnings per share. The firm’s revenue for the quarter was up 85.5% compared to the same quarter last year. Research analysts predict that Broadcom Inc. will post 10.20 earnings per share for the current year.

Broadcom Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Monday, September 21st were issued a dividend of $0.65 per share. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend was Monday, September 21st. Broadcom’s dividend payout ratio is 33.21%.

Broadcom Company Profile

Broadcom Inc. is a global technology company that designs and supplies semiconductor products and infrastructure software. Its semiconductor portfolio includes chips and components used in networking, broadband communications, wireless connectivity, data storage, and industrial applications. The company serves businesses across a range of industries, including communications, enterprise technology, and consumer electronics. Broadcom also provides infrastructure software, including products for virtualization, cloud computing, cybersecurity, and enterprise operations.