Key Points
- CEO Hock Tan sold 100,000 shares on Dec. 23 at an average price of $345.65 for a $34.565M transaction, reducing his stake by 16.79% to 495,638 shares, according to a Form 4 filing.
- Quarterly results beat expectations — Broadcom reported $1.95 EPS vs. $1.87 expected and revenue of $18.02B (up 28.2% YoY) — but the stock pulled back amid post‑earnings margin and guidance concerns.
- Dividend increase and strong institutional/analyst support: the quarterly dividend was raised to $0.65 ($2.60 annual), institutional ownership is ~76.43% with large stakes from Vanguard and Norges Bank, and analysts maintain mostly "Buy" ratings with an average target near $436.
Broadcom Inc. (NASDAQ:AVGO - Get Free Report) CEO Hock Tan sold 100,000 shares of Broadcom stock in a transaction dated Tuesday, December 23rd. The shares were sold at an average price of $345.65, for a total transaction of $34,565,000.00. Following the transaction, the chief executive officer directly owned 495,638 shares of the company's stock, valued at approximately $171,317,274.70. This trade represents a 16.79% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink.
Broadcom Trading Down 0.8%
NASDAQ:AVGO opened at $349.37 on Tuesday. The firm has a market capitalization of $1.66 trillion, a P/E ratio of 73.40, a PEG ratio of 1.21 and a beta of 1.19. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.71 and a quick ratio of 1.58. Broadcom Inc. has a one year low of $138.10 and a one year high of $414.61. The company's 50-day simple moving average is $362.74 and its 200 day simple moving average is $325.67.
Broadcom (NASDAQ:AVGO - Get Free Report) last announced its earnings results on Thursday, December 11th. The semiconductor manufacturer reported $1.95 earnings per share for the quarter, beating analysts' consensus estimates of $1.87 by $0.08. Broadcom had a net margin of 36.20% and a return on equity of 37.45%. The business had revenue of $18.02 billion during the quarter, compared to the consensus estimate of $17.46 billion. During the same quarter last year, the firm earned $1.42 earnings per share. The business's revenue for the quarter was up 28.2% on a year-over-year basis. As a group, analysts forecast that Broadcom Inc. will post 5.38 EPS for the current fiscal year.
Broadcom Increases Dividend
The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 31st. Shareholders of record on Monday, December 22nd will be paid a dividend of $0.65 per share. The ex-dividend date is Monday, December 22nd. This is a positive change from Broadcom's previous quarterly dividend of $0.59. This represents a $2.60 dividend on an annualized basis and a yield of 0.7%. Broadcom's dividend payout ratio (DPR) is presently 54.62%.
Institutional Inflows and Outflows
Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Norges Bank bought a new position in shares of Broadcom during the 2nd quarter valued at $18,579,549,000. Vanguard Group Inc. lifted its holdings in Broadcom by 1.3% in the second quarter. Vanguard Group Inc. now owns 483,442,939 shares of the semiconductor manufacturer's stock valued at $133,261,046,000 after acquiring an additional 6,222,802 shares during the period. Edgewood Management LLC purchased a new position in Broadcom in the second quarter worth about $1,571,438,000. Arrowstreet Capital Limited Partnership boosted its position in Broadcom by 499.4% in the third quarter. Arrowstreet Capital Limited Partnership now owns 5,634,232 shares of the semiconductor manufacturer's stock worth $1,858,789,000 after purchasing an additional 4,694,313 shares during the last quarter. Finally, Alliancebernstein L.P. grew its stake in shares of Broadcom by 16.0% during the 1st quarter. Alliancebernstein L.P. now owns 29,513,814 shares of the semiconductor manufacturer's stock valued at $4,941,498,000 after purchasing an additional 4,077,910 shares during the period. Institutional investors own 76.43% of the company's stock.
Analyst Ratings Changes
Several research firms have recently issued reports on AVGO. Piper Sandler reaffirmed an "overweight" rating and issued a $430.00 price target (up previously from $375.00) on shares of Broadcom in a research report on Friday, December 12th. Argus raised their price objective on shares of Broadcom from $285.00 to $375.00 and gave the company a "buy" rating in a research note on Monday, September 8th. Weiss Ratings reiterated a "buy (b-)" rating on shares of Broadcom in a research note on Monday, December 15th. TD Cowen raised their price target on shares of Broadcom from $405.00 to $450.00 and gave the company a "buy" rating in a research report on Friday, December 12th. Finally, 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. Three investment analysts have rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and one has issued a Hold rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Buy" and an average target price of $436.33.
Get Our Latest Stock Analysis on AVGO
Key Headlines Impacting Broadcom
Here are the key news stories impacting Broadcom this week:
- Positive Sentiment: Large AI backlog and product roadmap support medium‑term growth: market commentary highlights Broadcom’s multi‑billion AI order backlog and its role supplying custom silicon, networking and data‑center infrastructure — a core beneficiary of the AI data‑center cycle. QuiverQuant: Opinions on AI Backlog and Earnings Drop
- Positive Sentiment: Strong analyst sentiment and lofty price targets point to upside over time: multiple firms have issued buy/overweight ratings and a median price target near $450, with several $475–$510 targets cited. That institutional conviction supports longer‑term investor case. Analyst Ratings & Price Targets
- Positive Sentiment: Sector dynamics (NVIDIA/Groq deal) amplify demand for networking and infrastructure — ETFs and diversified semiconductor plays (like SOXX) call out Broadcom as a beneficiary as AI moves from training to inference. MarketBeat: The Lazy Way to Play NVIDIA’s $20B Groq Deal
- Neutral Sentiment: Insider selling is active but largely explained: recent Form 4s show many sales were automatic with RSU tax withholding; one material Hock Tan transaction was described as an exchange‑fund diversification rather than an outright vote of no confidence. That reduces but doesn’t eliminate investor concern. MarketBeat: Broadcom's Insider Selling
- Neutral Sentiment: Heavy social and hedge‑fund chatter: AVGO has seen big year‑to‑date gains and substantial institutional position churn; conversation mixes bullish AI theses with concerns about non‑AI revenue trends. QuiverQuant discussion summary
- Negative Sentiment: Near‑term pressure from post‑earnings selloff and margin/guidance worries: the Dec. earnings beat was followed by a sharp pullback as investors parsed flat non‑AI guidance and gross‑margin questions — fueling today’s weakness. MarketBeat: Post‑earnings selloff analysis
- Negative Sentiment: Rotation risk: reports that some large investors are trimming mega‑cap AI winners and rotating positions could sustain short‑term outflows from AVGO if momentum favors other sector leaders. 247WallSt: Billionaires Dump the Magnificent Seven
About Broadcom
(
Get Free Report)
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.
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