Hock Tan Sells 130,000 Shares of Broadcom (NASDAQ:AVGO) Stock

Broadcom Inc. (NASDAQ:AVGO) CEO Hock Tan sold 130,000 shares of the stock in a transaction on Thursday, December 18th. The shares were sold at an average price of $326.02, for a total value of $42,382,600.00. Following 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website.

Broadcom Trading Up 2.3%

Shares of AVGO stock opened at $349.32 on Wednesday. The firm has a 50-day moving average price of $362.78 and a 200 day moving average price of $322.82. Broadcom Inc. has a twelve month low of $138.10 and a twelve month high of $414.61. The company has a market capitalization of $1.66 trillion, a price-to-earnings ratio of 73.39, a PEG ratio of 1.17 and a beta of 1.19. The company has a current ratio of 1.71, a quick ratio of 1.58 and a debt-to-equity ratio of 0.76.

Broadcom (NASDAQ:AVGO) last released its quarterly earnings results on Thursday, December 11th. The semiconductor manufacturer reported $1.95 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.87 by $0.08. The company had revenue of $18.02 billion for the quarter, compared to analysts’ expectations of $17.46 billion. Broadcom had a net margin of 36.20% and a return on equity of 37.45%. The firm’s revenue for the quarter was up 28.2% compared to the same quarter last year. During the same period last year, the company earned $1.42 EPS. Research analysts forecast that Broadcom Inc. will post 5.38 earnings per share for the current fiscal year.

Broadcom Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, December 31st. Shareholders of record on Monday, December 22nd will be paid a $0.65 dividend. This represents a $2.60 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend is Monday, December 22nd. This is an increase from Broadcom’s previous quarterly dividend of $0.59. Broadcom’s dividend payout ratio is presently 54.62%.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Truist raised its price target to $510, adding to recent upward revisions that bolster buy-side momentum and give institutional investors cover to add shares. Read More.
• Positive Sentiment: Strong AI growth thesis: reports highlight management guidance and analyst estimates showing very large AI revenue and FCF expansion (Seeking Alpha notes >150% AI revenue and ~60% FCF growth for FY2026), supporting higher valuation multiples if delivered. Read More.
• Positive Sentiment: Market narrative shift to backlog/supply wins: commentary says investors are re‑rating AVGO on its ability to convert a reported ~$73B AI order book into durable revenue rather than focusing only on near‑term margins. Read More.
• Positive Sentiment: Dividend increase signals strong cash flow and may attract income investors; the higher payout also complements the growth narrative. Read More.
• Positive Sentiment: Insider buy: director Harry L. You purchased 1,000 shares (~$325k), a modest but helpful signal of insider conviction amid mixed insider activity. Read More.
• Neutral Sentiment: Deep-dive pieces on international revenue mix and options/flow activity are informative for modeling revenue exposure and short-term volatility but are not immediate fundamentals changes. Read More.
• Neutral Sentiment: Social-media and forum chatter (Quiver/other aggregators) show mixed reactions — heavy bullish posts on AI revenue are balanced by debate over non‑AI flatness; this amplifies intraday moves but is an unreliable signal for fundamentals. Read More.
• Negative Sentiment: Large insider sale: CEO Hock E. Tan sold 130,000 shares (~$42.4M), materially reducing his stake — a move that can spook investors and weighs on sentiment despite other buys. Read More.
• Negative Sentiment: Multiple other insider sales and recent selling by some senior officers amplify the negative signal from insider transactions. Read More.
• Negative Sentiment: Post‑earnings pullback and valuation concerns: AVGO is down materially since the Dec. 11 results (~19% noted) and outlets like Barron’s flag potential overvaluation, which could cap upside if AI growth expectations moderate. Read More. Read More.

Institutional Trading of Broadcom

A number of institutional investors have recently modified their holdings of AVGO. Sherman Porfolios LLC raised its holdings in Broadcom by 7.1% in the third quarter. Sherman Porfolios LLC now owns 3,471 shares of the semiconductor manufacturer’s stock valued at $1,145,000 after buying an additional 231 shares during the period. PMG Family Office LLC acquired a new stake in shares of Broadcom in the third quarter worth $395,000. AIA Group Ltd raised its stake in shares of Broadcom by 34.6% in the 3rd quarter. AIA Group Ltd now owns 287,257 shares of the semiconductor manufacturer’s stock valued at $94,769,000 after acquiring an additional 73,824 shares during the period. Alternative Investment Advisors LLC. lifted its holdings in shares of Broadcom by 116.5% during the 3rd quarter. Alternative Investment Advisors LLC. now owns 5,219 shares of the semiconductor manufacturer’s stock valued at $1,722,000 after acquiring an additional 2,808 shares in the last quarter. Finally, Financial Symmetry Inc acquired a new position in shares of Broadcom during the 3rd quarter valued at $263,000. Hedge funds and other institutional investors own 76.43% of the company’s stock.

Analysts Set New Price Targets

A number of equities research analysts have recently commented on the company. Wall Street Zen raised Broadcom from a “hold” rating to a “buy” rating in a research report on Saturday, December 13th. Piper Sandler restated an “overweight” rating and issued a $430.00 price target (up previously from $375.00) on shares of Broadcom in a report on Friday, December 12th. Robert W. Baird set a $420.00 price objective on shares of Broadcom in a research note on Friday, December 12th. Deutsche Bank Aktiengesellschaft set a $430.00 price objective on shares of Broadcom and gave the stock a “buy” rating in a report on Friday, December 12th. Finally, Susquehanna restated a “positive” rating and issued a $450.00 target price (up from $400.00) on shares of Broadcom in a report on Thursday, December 4th. Three investment analysts have rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and one has issued a Hold rating to the company’s stock. Based on data from MarketBeat, Broadcom has an average rating of “Buy” and an average target price of $436.33.

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.