Broadcom (NASDAQ:AVGO) Trading Down 1.6% Following Analyst Downgrade

Broadcom Inc. (NASDAQ:AVGO) shares dropped 1.6% on Tuesday after Royal Bank Of Canada lowered their price target on the stock from $370.00 to $340.00. Royal Bank Of Canada currently has a sector perform rating on the stock. Broadcom traded as low as $307.40 and last traded at $313.84. Approximately 20,432,338 shares traded hands during mid-day trading, a decline of 18% from the average daily volume of 25,055,746 shares. The stock had previously closed at $318.82.

AVGO has been the topic of several other research reports. Citigroup reissued a “buy” rating and issued a $458.00 price target (down from $480.00) on shares of Broadcom in a report on Tuesday, February 17th. Zacks Research raised Broadcom from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, February 3rd. KeyCorp reiterated an “overweight” rating and issued a $500.00 price target (up from $460.00) on shares of Broadcom in a research report on Friday, December 12th. TD Cowen reissued a “buy” rating on shares of Broadcom in a report on Friday, December 12th. Finally, Deutsche Bank Aktiengesellschaft set a $430.00 target price on shares of Broadcom and gave the stock a “buy” rating in a report on Friday, December 12th. Two research analysts have rated the stock with a Strong Buy rating, thirty have issued a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, Broadcom has an average rating of “Buy” and an average price target of $432.13.

Insider Activity

In related news, CEO Hock E. Tan sold 70,000 shares of the stock in a transaction that occurred on Tuesday, January 6th. The shares were sold at an average price of $347.30, for a total value of $24,311,000.00. Following the transaction, the chief executive officer directly owned 132,836 shares in the company, valued at $46,133,942.80. This represents a 34.51% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Harry L. You bought 1,000 shares of the firm’s stock in a transaction dated Thursday, December 18th. The shares were bought at an average price of $325.13 per share, with a total value of $325,130.00. Following the completion of the transaction, the director directly 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 disclosure for this purchase is available in the SEC filing. Over the last quarter, insiders have sold 779,101 shares of company stock worth $283,804,325. 2.00% of the stock is currently owned by insiders.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Q1 results beat estimates — Broadcom reported non-GAAP EPS of $2.05 and revenue of $19.31B (up ~29% YoY), beating consensus and showing strong margin and cash-generation metrics; this underpins today’s upside reaction. Broadcom Q1 Results & Guidance Press Release
• Positive Sentiment: Second-quarter revenue guide topped expectations — management guided Q2 revenue around $22.0B versus ~ $20.4B consensus, signaling continued demand for data-center and AI-related products. Reuters: Broadcom forecasts Q2 revenue above estimates
• Positive Sentiment: AI revenue surge and capital return boost — Broadcom said AI-related revenue more than doubled and unveiled a new $10B share repurchase program plus a $0.65 quarterly dividend, both supportive of EPS and buyback-driven shareholder returns. FXEmpire: Broadcom jumps after hours on earnings beat, AI outlook
• Neutral Sentiment: Analyst coverage and price-target dispersion — Wall Street remains largely constructive (multiple buy/outperform ratings and a median ~ $450 target), which supports medium-term upside, though targets vary. Quiver: Analyst ratings, targets and institutional flows
• Neutral Sentiment: Macro/market backdrop is supportive — broader markets moved higher as geopolitical risk fears eased today, which helped sentiment into earnings season. Zacks: Markets close higher as Iran fears abate
• Negative Sentiment: Insider selling and CEO pay scrutiny — filings and reporting show large insider sales and a reported CEO pay package that has drawn attention; such governance headlines can weigh on sentiment for some investors. Quiver: CEO 2025 pay revealed
• Negative Sentiment: Valuation and recent price weakness — AVGO entered the quarter trading below its highs and some outlets/analysts have flagged valuation and momentum concerns despite the beat, leaving upside contingent on sustained AI demand. AmericanBankingNews: RBC issues pessimistic forecast

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in the business. Capital Counsel LLC NY acquired a new stake in Broadcom during the second quarter worth approximately $221,000. Waterloo Capital L.P. lifted its holdings in Broadcom by 7.0% during the 2nd quarter. Waterloo Capital L.P. now owns 48,361 shares of the semiconductor manufacturer’s stock worth $13,331,000 after purchasing an additional 3,180 shares during the last quarter. Providence First Trust Co boosted its stake in Broadcom by 1,099.3% in the 3rd quarter. Providence First Trust Co now owns 8,923 shares of the semiconductor manufacturer’s stock valued at $2,944,000 after purchasing an additional 8,179 shares during the period. Aspen Wealth Strategies LLC grew its holdings in Broadcom by 174.7% in the 2nd quarter. Aspen Wealth Strategies LLC now owns 23,673 shares of the semiconductor manufacturer’s stock valued at $6,525,000 after buying an additional 15,055 shares in the last quarter. Finally, RiverFront Investment Group LLC increased its position in Broadcom by 107.6% during the 2nd quarter. RiverFront Investment Group LLC now owns 16,524 shares of the semiconductor manufacturer’s stock worth $4,555,000 after buying an additional 8,566 shares during the period. Institutional investors own 76.43% of the company’s stock.

Broadcom Stock Up 1.2%

The stock has a fifty day moving average price of $334.52 and a two-hundred day moving average price of $342.68. The company has a market cap of $1.51 trillion, a price-to-earnings ratio of 66.71, a P/E/G ratio of 1.00 and a beta of 1.22. The company has a quick ratio of 1.58, a current ratio of 1.71 and a debt-to-equity ratio of 0.76.

Broadcom (NASDAQ:AVGO) last released its quarterly earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 EPS for the quarter, topping analysts’ consensus estimates of $2.03 by $0.02. The business had revenue of $19.31 billion for the quarter, compared to analyst estimates of $19.10 billion. Broadcom had a net margin of 36.20% and a return on equity of 37.45%. Broadcom’s revenue for the quarter was up 29.5% compared to the same quarter last year. During the same period last year, the firm earned $1.60 earnings per share. As a group, sell-side analysts expect that Broadcom Inc. will post 5.38 EPS for the current year.

Broadcom Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, December 31st. Investors of record on Monday, December 22nd were paid a $0.65 dividend. This represents a $2.60 annualized dividend and a dividend yield of 0.8%. This is an increase from Broadcom’s previous quarterly dividend of $0.59. The ex-dividend date was Monday, December 22nd. Broadcom’s dividend payout ratio is presently 54.62%.

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.