Broadcom (NASDAQ:AVGO) Stock Price Down 1.2% Following Insider Selling

Broadcom Inc. (NASDAQ:AVGO)’s share price dropped 1.2% during mid-day trading on Monday following insider selling activity. The stock traded as low as $336.50 and last traded at $343.42. Approximately 30,898,399 shares traded hands during trading, an increase of 10% from the average daily volume of 28,116,754 shares. The stock had previously closed at $347.62.

Specifically, CFO Kirsten M. Spears sold 30,000 shares of the firm’s stock in a transaction dated Wednesday, December 31st. The stock was sold at an average price of $347.82, for a total value of $10,434,600.00. Following the transaction, the chief financial officer directly owned 277,237 shares of the company’s stock, valued at approximately $96,428,573.34. This trade represents a 9.76% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Mark David Brazeal sold 25,921 shares of the stock in a transaction that occurred on Friday, December 26th. The stock was sold at an average price of $352.07, for a total transaction of $9,126,006.47. Following the completion of the transaction, the insider owned 240,573 shares in the company, valued at $84,698,536.11. This trade represents a 9.73% decrease in their position. The disclosure for this sale is available in the SEC filing.

Analyst Upgrades and Downgrades

AVGO has been the subject of several recent research reports. Citigroup restated a “buy” rating and set a $480.00 target price (up from $415.00) on shares of Broadcom in a research report on Friday, December 12th. Wall Street Zen upgraded Broadcom from a “hold” rating to a “buy” rating in a research note on Saturday, December 13th. Morgan Stanley boosted their price target on Broadcom from $443.00 to $462.00 and gave the company an “overweight” rating in a report on Friday, December 12th. Benchmark raised 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. Finally, The Goldman Sachs Group reiterated a “buy” rating and set a $450.00 price objective on shares of Broadcom in a research note on Monday. Three research 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 stock. According to MarketBeat, the company presently has a consensus rating of “Buy” and an average target price of $436.89.

More Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: BofA names Broadcom among top chip stocks to “ride the wave,” signaling strong institutional conviction that AVGO benefits from the AI/data‑center cycle and should capture ongoing infrastructure spending. Nvidia, Broadcom, AMD among BofA’s top chip stocks to ‘ride the wave’
• Positive Sentiment: Analysts and coverage upgrades are pushing consensus targets higher (InsiderTrades/MarketBeat cite an early‑January consensus near $437), supporting a multi‑quarter growth view driven by custom ASICs/GPUs and software/platform revenue. This underpins longer‑term upside even if near‑term churn occurs. The AI Tech Paradox: Insiders Sell, the Case for Buying Gets Stronger (AVGO)
• Positive Sentiment: Broadcom appears on several “top AI stocks” lists (e.g., The Motley Fool), which highlights investor interest in Broadcom’s custom AI chip opportunity and keeps demand for the shares among growth‑oriented funds. 3 Best Artificial Intelligence Stocks to Buy in January
• Neutral Sentiment: Valuation reviews are active after a multi‑year run and recent pullback; analysts and outlets are assessing whether current levels reflect the growth outlook or warrant further consolidation — this keeps trading volatile until earnings/guidance clarity. Broadcom (AVGO): Assessing Valuation After Recent Share Price Softness and Multi‑Year Run
• Negative Sentiment: CFO Kirsten M. Spears sold 30,000 shares (disclosed in an SEC filing), a sizable opportunistic insider sale that can amplify short‑term downside as investors parse whether sales are routine compensation monetization or signaling near‑term allocation. SEC Form 4 — Kirsten M. Spears

Broadcom Stock Performance

The business has a 50-day moving average of $362.53 and a 200-day moving average of $329.05. The company has a market capitalization of $1.63 trillion, a P/E ratio of 72.15, a P/E/G ratio of 1.17 and a beta of 1.21. 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 (NASDAQ:AVGO) last released its earnings results on Thursday, December 11th. The semiconductor manufacturer reported $1.95 earnings per share for the quarter, topping analysts’ consensus estimates of $1.87 by $0.08. The business had revenue of $18.02 billion for the quarter, compared to analyst estimates of $17.46 billion. Broadcom had a return on equity of 37.45% and a net margin of 36.20%.The business’s revenue was up 28.2% compared to the same quarter last year. During the same quarter last year, the firm posted $1.42 earnings per share. On average, sell-side analysts anticipate that Broadcom Inc. will post 5.38 EPS for the current year.

Broadcom Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, December 31st. Shareholders of record on Monday, December 22nd were issued a dividend of $0.65 per share. This is an increase from Broadcom’s previous quarterly dividend of $0.59. This represents a $2.60 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date was Monday, December 22nd. Broadcom’s dividend payout ratio (DPR) is currently 54.62%.

Institutional Trading of Broadcom

A number of institutional investors have recently modified their holdings of AVGO. Norges Bank acquired a new position in Broadcom during the 2nd quarter valued at about $18,579,549,000. Vanguard Group Inc. raised its position in shares of Broadcom by 1.3% in the 2nd quarter. Vanguard Group Inc. now owns 483,442,939 shares of the semiconductor manufacturer’s stock valued at $133,261,046,000 after purchasing an additional 6,222,802 shares during the last quarter. Edgewood Management LLC acquired a new stake in Broadcom in the 2nd quarter worth approximately $1,571,438,000. Arrowstreet Capital Limited Partnership grew its holdings in shares of Broadcom by 499.4% during the third quarter. Arrowstreet Capital Limited Partnership now owns 5,634,232 shares of the semiconductor manufacturer’s stock valued at $1,858,789,000 after buying an additional 4,694,313 shares during the last quarter. Finally, Massachusetts Financial Services Co. MA increased its holdings in Broadcom by 115.5% in the 2nd quarter. Massachusetts Financial Services Co. MA now owns 6,017,340 shares of the semiconductor manufacturer’s stock worth $1,658,680,000 after buying an additional 3,224,739 shares during the period. 76.43% of the stock is currently owned by institutional investors.

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.