Broadcom (NASDAQ:AVGO) Cut to Hold at Erste Group Bank

Erste Group Bank cut shares of Broadcom (NASDAQ:AVGO) from a buy rating to a hold rating in a report published on Thursday morning, MarketBeat.com reports.

A number of other research analysts have also issued reports on the company. Morgan Stanley boosted their price objective on Broadcom from $462.00 to $470.00 and gave the company an “overweight” rating in a research report on Friday, March 6th. Bank of America dropped their target price on Broadcom from $500.00 to $450.00 and set a “buy” rating on the stock in a research report on Thursday, March 5th. TD Cowen reiterated a “buy” rating on shares of Broadcom in a research note on Friday, December 12th. Rosenblatt Securities boosted their price target on shares of Broadcom from $450.00 to $500.00 and gave the company a “buy” rating in a report on Thursday, March 5th. Finally, Citigroup upped their price target on shares of Broadcom from $458.00 to $475.00 and gave the stock a “buy” rating in a research report on Thursday, March 5th. One equities research analyst has rated the stock with a Strong Buy rating, twenty-eight have assigned a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $435.30.

Broadcom Price Performance

AVGO opened at $314.55 on Thursday. The company has a quick ratio of 1.73, a current ratio of 1.90 and a debt-to-equity ratio of 0.80. The company’s 50-day moving average price is $324.73 and its 200 day moving average price is $343.04. Broadcom has a fifty-two week low of $138.10 and a fifty-two week high of $414.61. The firm has a market cap of $1.49 trillion, a price-to-earnings ratio of 61.44, a price-to-earnings-growth ratio of 0.67 and a beta of 1.24.

Broadcom (NASDAQ:AVGO) last issued its earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 EPS for the quarter, beating analysts’ consensus estimates of $2.03 by $0.02. The company had revenue of $19.31 billion during the quarter, compared to the consensus estimate of $19.10 billion. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.Broadcom’s quarterly revenue was up 29.5% compared to the same quarter last year. During the same period in the previous year, the firm posted $1.60 earnings per share. As a group, sell-side analysts expect that Broadcom will post 5.38 earnings per share for the current year.

Broadcom Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Monday, March 23rd were paid a dividend of $0.65 per share. The ex-dividend date of this dividend was Monday, March 23rd. This represents a $2.60 annualized dividend and a yield of 0.8%. Broadcom’s payout ratio is presently 50.78%.

Insider Activity at Broadcom

In related news, CEO Hock E. Tan sold 70,000 shares of Broadcom stock in a transaction dated Tuesday, January 6th. The shares were sold at an average price of $347.30, for a total transaction of $24,311,000.00. Following the sale, the chief executive officer directly owned 132,836 shares in the company, valued at $46,133,942.80. The trade was a 34.51% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Mark David Brazeal sold 50,488 shares of the company’s stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total transaction of $16,236,940.80. Following the completion of the sale, the insider directly owned 278,141 shares of the company’s stock, valued at $89,450,145.60. The trade was a 15.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 373,049 shares of company stock worth $123,024,715 in the last ninety days. 1.90% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Broadcom

Several large investors have recently bought and sold shares of the stock. Norges Bank bought a new stake in Broadcom during the fourth quarter worth approximately $24,252,196,000. Cardano Risk Management B.V. boosted its stake in Broadcom by 895.2% during the 4th quarter. Cardano Risk Management B.V. now owns 12,689,800 shares of the semiconductor manufacturer’s stock valued at $4,391,940,000 after purchasing an additional 11,414,701 shares in the last quarter. State Street Corp boosted its stake in Broadcom by 2.7% during the 4th quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer’s stock valued at $65,788,194,000 after purchasing an additional 5,040,801 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its position in shares of Broadcom by 499.4% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 5,634,232 shares of the semiconductor manufacturer’s stock valued at $1,858,789,000 after purchasing an additional 4,694,313 shares during the period. Finally, Vanguard Group Inc. increased its position in shares of Broadcom by 0.8% during the 4th quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer’s stock valued at $167,064,997,000 after purchasing an additional 3,919,715 shares during the period. Institutional investors and hedge funds own 76.43% of the company’s stock.

Broadcom News Summary

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Five‑year, $970M blanket purchase agreement with the Defense Information Systems Agency (DISA) via partner Carahsoft boosts recurring software/government revenue visibility and demonstrates Broadcom’s traction in public‑sector contracts. Broadcom (AVGO) and Carahsoft Announce $970M BPA with DISA
• Positive Sentiment: Appointment of Alphabet finance executive Amie Thuener as CFO (effective June 12) is framed as a governance/operational positive — adds Big Tech financial experience as Broadcom scales its AI chip and software businesses. Broadcom taps Alphabet executive Amie Thuener as next CFO
• Positive Sentiment: High‑profile investor support: reports that Ray Dalio remains bullish on Broadcom add institutional endorsement to the AI/software growth narrative. Broadcom Inc. (AVGO): Billionaire Ray Dalio Continues to Be Bullish
• Neutral Sentiment: Analyst and market commentary continues to emphasize Broadcom’s AI upside and long‑term moat, while noting the story is still early — supportive for sentiment but reliant on execution and product ramp. Broadcom’s AI Story Is Still Early
• Negative Sentiment: Broker downgrade: Erste Group cut AVGO from “buy” to “hold,” which can pressure flows and investor conviction in the near term. Finviz / coverage note
• Negative Sentiment: Insider selling: co‑founder Henry Samueli disclosed a record sale, drawing attention and potentially heightening investor caution about timing and valuation. What Henry Samueli’s Record Broadcom Sale Signals For AVGO Shareholders
• Negative Sentiment: Macro/sector risk: recent chip‑stock selloff tied to geopolitical tensions (Iran conflict, supply‑chain concerns) and a post‑earnings pullback (Zacks notes a ~5.5% decline since results) weigh on short‑term performance. Nvidia, Broadcom Drop as Chip Stocks Sell Off. Why War Is Hitting Them So Hard.

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.