Broadcom (NASDAQ:AVGO) CEO Hock Tan Sells 70,000 Shares

by · The Cerbat Gem

Broadcom Inc. (NASDAQ:AVGO – Get Free Report) CEO Hock Tan sold 70,000 shares of the stock in a transaction on Tuesday, January 6th. The stock was sold at an average price of $347.30, for a total transaction of $24,311,000.00. Following the completion of the sale, the chief executive officer directly owned 132,836 shares of the company’s stock, valued at approximately $46,133,942.80. This trade represents a 34.51% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website.

Broadcom Price Performance

Shares of NASDAQ:AVGO traded down $11.02 on Thursday, reaching $332.48. The company’s stock had a trading volume of 24,309,895 shares, compared to its average volume of 25,644,914. The company has a market cap of $1.58 trillion, a P/E ratio of 69.85, a PEG ratio of 1.16 and a beta of 1.21. Broadcom Inc. has a 52-week low of $138.10 and a 52-week high of $414.61. The company has a 50-day simple moving average of $361.10 and a 200 day simple moving average of $329.81. The company has a debt-to-equity ratio of 0.76, a quick ratio of 1.58 and a current ratio of 1.71.

Broadcom (NASDAQ:AVGO – Get Free Report) last released its earnings results on Thursday, December 11th. The semiconductor manufacturer reported $1.95 earnings per share for the quarter, topping the consensus estimate 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 during the quarter, compared to the consensus estimate of $17.46 billion. During the same period last year, the company earned $1.42 earnings per share. The business’s revenue for the quarter was up 28.2% compared to the same quarter last year. As a group, equities research analysts anticipate that Broadcom Inc. will post 5.38 EPS for the current fiscal year.

Broadcom Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, December 31st. Investors of record on Monday, December 22nd were given a $0.65 dividend. 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 payout ratio is currently 54.62%.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

  • Positive Sentiment: Quarterly results beat estimates and revenue growth provide a fundamental tailwind; strong margins and cash flow support the longer‑term story for AVGO. Record earnings and demand
  • Positive Sentiment: Product/AI strategy: Broadcom launched a next‑gen Wi‑Fi 8 platform and APU aimed at AI-era connectivity, reinforcing its positioning in networking and AI infrastructure — a multi‑quarter revenue driver. Wi‑Fi 8 expands connectivity portfolio
  • Neutral Sentiment: Analyst and editorial coverage remains mixed but constructive over a multi‑quarter view: several pieces highlight AVGO as an AI/infra compounder whose AI monetization may be more meaningful in H2 2026 — helpful for medium‑term estimates but not an immediate catalyst. Seeking Alpha valuation piece
  • Negative Sentiment: Insider selling by senior management has spooked some investors: CEO Hock E. Tan sold 70,000 shares (~$24.3M) and director Mark Brazeal sold 30,000 shares (~$10.4M) on Jan. 6 — filings are public and the transactions have been cited in market coverage as a near‑term negative. CEO Form 4 Director Form 4
  • Negative Sentiment: Near‑term guidance/margin concerns and valuation pressure after a large 2025 run have prompted selling in the short term; coverage and headlines are emphasizing the margin guidance softness as the primary driver of recent weakness. Why shares are falling

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Norges Bank acquired a new stake in Broadcom during the 2nd quarter worth $18,579,549,000. Vanguard Group Inc. increased its stake 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 purchasing an additional 6,222,802 shares during the period. Edgewood Management LLC purchased a new stake in shares of Broadcom in the second quarter valued at about $1,571,438,000. Arrowstreet Capital Limited Partnership boosted its stake 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 worth $1,858,789,000 after buying an additional 4,694,313 shares during the period. Finally, Massachusetts Financial Services Co. MA boosted its stake in shares of Broadcom by 115.5% during the second 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. Institutional investors and hedge funds own 76.43% of the company’s stock.

Analysts Set New Price Targets

Several research analysts recently commented on the company. Benchmark upped their price objective on shares of Broadcom from $385.00 to $485.00 and gave the company a “buy” rating in a research note on Friday, December 12th. Rosenblatt Securities raised their price target on shares of Broadcom from $400.00 to $440.00 and gave the stock a “buy” rating in a report on Tuesday, December 9th. Deutsche Bank Aktiengesellschaft set a $430.00 target price on Broadcom and gave the stock a “buy” rating in a research note on Friday, December 12th. Bank of America upped their price target on Broadcom from $460.00 to $500.00 and gave the company a “buy” rating in a research note on Friday, December 12th. Finally, Susquehanna reissued a “positive” rating and set a $450.00 price objective (up from $400.00) on shares of Broadcom in a research report on Thursday, December 4th. Three research analysts have rated the stock with a Strong Buy rating, twenty-nine have issued a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Buy” and an average target price of $436.89.

Check Out Our Latest Report on AVGO

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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