Broadcom (NASDAQ:AVGO) Stock Price Down 3.2% – Should You Sell?

Broadcom Inc. (NASDAQ:AVGO)’s stock price was down 3.2% during trading on Tuesday . The company traded as low as $377.01 and last traded at $380.00. 22,786,186 shares were traded during trading, a decline of 9% from the average daily volume of 25,071,703 shares. The stock had previously closed at $392.43.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom received a Zacks Rank #2 (Buy), supported by improving earnings estimates. Analysts’ average price target implies approximately 32% upside, although such targets are not guarantees. Broadcom Inc. Upgraded to Buy
• Positive Sentiment: Optimistic analysts argue AVGO remains undervalued, with some estimates suggesting substantial upside, driven by custom AI-chip demand, strong orders and visibility extending into 2028. Broadcom Looks Undervalued With 50% Upside
• Positive Sentiment: Broadcom’s upcoming quarterly dividend remains scheduled for September 30, at $0.65 per share, providing continued income support for shareholders. Broadcom to Pay Dividends Next Month
• Positive Sentiment: VMware Explore 2026 will highlight private-cloud AI technologies, technical sessions and certifications, potentially reinforcing Broadcom’s software and enterprise-AI strategy. VMware Explore 2026 Programming
• Neutral Sentiment: Some investors are positioning for a rebound after the recent selloff, while others are comparing Broadcom’s custom-silicon position with Marvell’s. These reports may increase volatility without changing fundamentals. AVGO Stock Rebound
• Negative Sentiment: A report that several hedge funds sold AVGO during the second quarter and shifted into other semiconductor stocks is weighing on sentiment and raising questions about relative valuation. Hedge Funds Turn Bearish on Broadcom
• Negative Sentiment: Shares have faced pressure following reports of a VMware vCenter Syslog Server security vulnerability, alongside broader concerns about whether AI funding and spending can continue at current levels. Bet on a Broadcom Bounce
• Negative Sentiment: Investors are also assessing potential AI margin pressure and competition from Astera Labs, whose faster growth and rising estimates are being viewed by some analysts as more attractive than Broadcom. ALAB vs. AVGO

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on AVGO shares. Rosenblatt Securities reiterated a “buy” rating and issued a $500.00 price objective on shares of Broadcom in a research note on Thursday, June 4th. Jefferies Financial Group set a $550.00 price objective on Broadcom and gave the stock a “buy” rating in a research note on Thursday, June 4th. Truist Financial increased their target price on shares of Broadcom from $545.00 to $550.00 and gave the stock a “buy” rating in a research report on Thursday, June 4th. Bank of America boosted their price target on shares of Broadcom from $450.00 to $530.00 and gave the company a “buy” rating in a research report on Thursday, June 4th. Finally, Evercore reaffirmed an “outperform” rating and set a $582.00 price objective on shares of Broadcom in a report on Tuesday, May 19th. Twenty-eight analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average price target of $493.24.

Broadcom Stock Performance

The firm has a fifty day simple moving average of $389.71 and a 200-day simple moving average of $374.06. The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71. The stock has a market cap of $1.81 trillion, a price-to-earnings ratio of 63.31, a P/E/G ratio of 0.75 and a beta of 1.45.

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

Broadcom Dividend Announcement

The company 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. The ex-dividend date was Monday, June 22nd. This represents a $2.60 annualized dividend and a yield of 0.7%. Broadcom’s dividend payout ratio (DPR) is currently 43.33%.

Insider Transactions at Broadcom

In other Broadcom news, Director Justine Page sold 1,602 shares of the business’s stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $373.86, for a total transaction of $598,923.72. Following the completion of the sale, the director directly owned 17,426 shares of the company’s stock, valued at approximately $6,514,884.36. The trade was a 8.42% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, Director Gayla J. Delly sold 1,890 shares of the company’s stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total transaction of $728,368.20. Following the transaction, the director owned 31,326 shares in the company, valued at approximately $12,072,413.88. The trade was a 5.69% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 61,644 shares of company stock valued at $24,016,214 in the last three months. Company insiders own 1.90% of the company’s stock.

Institutional Investors Weigh In On Broadcom

Institutional investors and hedge funds have recently modified their holdings of the business. ROSS JOHNSON & Associates LLC grew its holdings in 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 acquiring an additional 66 shares during the period. SWAN Capital LLC boosted its position in shares of Broadcom by 261.9% in the 4th 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 last quarter. Networth Advisors LLC grew its stake in shares of Broadcom by 546.2% during the first quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer’s stock worth $26,000 after purchasing an additional 71 shares during the period. Nvest Wealth Strategies Inc. bought a new stake in Broadcom in the fourth quarter valued at about $33,000. Finally, Family CFO Inc acquired a new position in Broadcom in the fourth quarter valued at about $35,000. 76.43% of the stock is owned by institutional investors.

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.