Broadcom (NASDAQ:AVGO) Stock Price Up 2.3% After Insider Buying Activity

Broadcom Inc. (NASDAQ:AVGO) was up 2.3% during trading on Tuesday after an insider bought additional shares in the company. The company traded as high as $350.11 and last traded at $349.32. Approximately 27,769,044 shares traded hands during trading, an increase of 3% from the average daily volume of 26,938,033 shares. The stock had previously closed at $341.45.

Specifically, Director Harry L. You purchased 1,000 shares of the business’s stock in a transaction dated Thursday, December 18th. The shares were purchased at an average cost of $325.13 per share, for a total transaction of $325,130.00. Following the completion of the acquisition, the director owned 36,602 shares in the company, valued at approximately $11,900,408.26. This trade represents a 2.81% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is available at the SEC website.

Analyst Ratings Changes

Several research firms have issued reports on AVGO. Citigroup reissued a “buy” rating and issued a $480.00 price objective (up from $415.00) on shares of Broadcom in a research report on Friday, December 12th. Barclays reiterated an “overweight” rating and issued a $500.00 price target (up previously from $450.00) on shares of Broadcom in a report on Friday, December 12th. Benchmark increased their price objective on Broadcom from $385.00 to $485.00 and gave the stock a “buy” rating in a research note on Friday, December 12th. Sanford C. Bernstein reaffirmed an “outperform” rating and set a $475.00 target price (up from $400.00) on shares of Broadcom in a research report on Friday, December 12th. Finally, Deutsche Bank Aktiengesellschaft set a $430.00 price target on Broadcom and gave the stock a “buy” rating in a research report on Friday, December 12th. Three analysts have rated the stock with a Strong Buy rating, twenty-nine have assigned a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat, Broadcom currently has an average rating of “Buy” and an average price target of $436.33.

Key Headlines Impacting Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Q4 AI momentum: Broadcom reported AI-related revenue strength (Zacks highlights Q4 AI revenue up sharply, with AI chip/XPU demand lifting results and driving a swelling backlog and upbeat 2026 outlook). Zacks: Broadcom’s Semiconductor Growth Picks Up
• Positive Sentiment: Bullish analyst commentary: Multiple firms have raised targets and reiterated buy/outperform stances (Cantor Fitzgerald and others flag AVGO as “ripe for outperformance” for 2026), supporting upward pressure on the stock. MSN: Cantor Fitzgerald on Broadcom
• Positive Sentiment: Dividend increase: Broadcom raised its quarterly dividend, signaling strong cash flow and attracting income-focused buyers (supports confidence despite near-term margin noise). MarketBeat: Broadcom Raises Dividend
• Positive Sentiment: Insider buy: Director Harry You purchased 1,000 shares (~$325k), a small but visible vote of confidence amid volatility. SEC Filing – Harry L. You Purchase
• Positive Sentiment: Media and retail momentum: Feature pieces and buy-list inclusions (e.g., Motley Fool-type coverage) are boosting retail interest in AVGO as an AI play. Fool: Broadcom a Top AI Stock
• Neutral Sentiment: Short interest and options: Reported short-interest growth (mid-December data showed an increase) and unusual options activity amplify intraday moves but days-to-cover remains modest (~1.9 days), so these are watch-list items rather than definitive catalysts.
• Neutral Sentiment: Backlog vs. conversion risk: The $73B AI backlog underpins revenue visibility, but conversion timing and mix (chip vs. system sales) determine ultimate margin and cash-flow impact — a structural positive if executed well, neutral until conversion details are clear. Seeking Alpha: Broadcom and AI Infrastructure
• Negative Sentiment: Margin concerns from system sales: Management warned gross margins will decline as AI system sales (which include pass-through component costs) grow — this spooked the market after the Dec. 11 earnings release and is the main reason for recent price weakness.
• Negative Sentiment: Insider selling: CEO Hock Tan and several senior insiders have sold material positions (reports show CEO sales exceeding $40M and aggregate insider selling topping $100M), which can undermine investor confidence even as company fundamentals remain strong. Yahoo Finance: Insider Selling Tops $100M
• Negative Sentiment: Near-term price volatility: The stock pulled back sharply (~mid-December sell-off) after earnings; with valuation questions flagged by some outlets, a missed execution on backlog conversion or margin protection could cap near-term upside. MarketBeat: Coverage of Post-Earnings Pullback

Broadcom Stock Up 0.2%

The firm has a market capitalization of $1.66 trillion, a P/E ratio of 73.57, a PEG ratio of 1.20 and a beta of 1.19. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.58 and a current ratio of 1.71. The business’s fifty day moving average price is $362.76 and its two-hundred day moving average price is $323.01.

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

Broadcom Increases Dividend

The firm also recently declared 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 dividend on an annualized basis and a yield of 0.7%. This is a boost from Broadcom’s previous quarterly dividend of $0.59. The ex-dividend date is Monday, December 22nd. Broadcom’s dividend payout ratio (DPR) is 54.62%.

Institutional Investors Weigh In On Broadcom

A number of large investors have recently modified their holdings of the business. Sawyer & Company Inc lifted its stake in shares of Broadcom by 62.1% during the second quarter. Sawyer & Company Inc now owns 94 shares of the semiconductor manufacturer’s stock worth $26,000 after buying an additional 36 shares during the period. JCIC Asset Management Inc. acquired a new stake in Broadcom during the 3rd quarter worth about $31,000. Longfellow Investment Management Co. LLC acquired a new stake in Broadcom during the 2nd quarter worth about $27,000. Legend Financial Advisors Inc. purchased a new stake in Broadcom during the 2nd quarter valued at about $28,000. Finally, Teachers Insurance & Annuity Association of America acquired a new position in shares of Broadcom in the second quarter valued at about $28,000. Hedge funds and other institutional investors own 76.43% of the company’s stock.

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.