Broadcom (NASDAQ:AVGO) Shares Down 1.7% After Insider Selling
by Doug Wharley · The Cerbat GemBroadcom Inc. (NASDAQ:AVGO – Get Free Report) shares were down 1.7% during mid-day trading on Wednesday after an insider sold shares in the company. The stock traded as low as $315.55 and last traded at $315.93. Approximately 24,919,659 shares traded hands during mid-day trading, a decline of 7% from the average daily volume of 26,923,930 shares. The stock had previously closed at $321.31.
Specifically, insider Charlie B. Kawwas sold 39,116 shares of the stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $321.61, for a total value of $12,580,096.76. Following the sale, the insider directly owned 74,626 shares in the company, valued at $24,000,467.86. This trade represents a 34.39% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, insider Charlie B. Kawwas sold 25,718 shares of Broadcom stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $326.10, for a total transaction of $8,386,639.80. Following the transaction, the insider directly owned 113,742 shares in the company, valued at $37,091,266.20. The trade was a 18.44% decrease in their position. The disclosure for this sale is available in the SEC filing. In related news, CFO Kirsten M. Spears sold 36,292 shares of the business’s stock in a transaction that occurred on Tuesday, March 17th. The shares were sold at an average price of $321.60, for a total transaction of $11,671,507.20. Following the completion of the transaction, the chief financial officer owned 327,760 shares in the company, valued at approximately $105,407,616. The trade was a 9.97% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link.
Wall Street Analysts Forecast Growth
Several equities research analysts have weighed in on the stock. TD Cowen reiterated a “buy” rating on shares of Broadcom in a report on Friday, December 12th. Rosenblatt Securities upped their price objective on shares of Broadcom from $450.00 to $500.00 and gave the company a “buy” rating in a research report on Thursday, March 5th. KeyCorp reaffirmed an “overweight” rating and set a $500.00 price objective (up from $460.00) on shares of Broadcom in a research note on Friday, December 12th. Benchmark reiterated a “buy” rating and set a $485.00 target price on shares of Broadcom in a report on Thursday, March 5th. Finally, Zacks Research cut Broadcom from a “strong-buy” rating to a “hold” rating in a research note on Wednesday, March 4th. One analyst has rated the stock with a Strong Buy rating, twenty-nine have given a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $435.30.
View Our Latest Research Report on AVGO
Broadcom News Summary
Here are the key news stories impacting Broadcom this week:
- Positive Sentiment: Broadcom began production‑volume shipments of the Tomahawk‑6 102.4 Tbps switch — a commercialization milestone that supports near‑term revenue from AI networking buildouts. Tomahawk‑6 Production Volume Shipping
- Positive Sentiment: Broadcom announced shipping the industry’s first end‑to‑end post‑quantum‑cryptography (PQC) safe, in‑flight network encryption solution — a product win that can expand enterprise networking addressable market. PQC Network Encryption Shipping
- Positive Sentiment: Quarterly results and commentary point to heavy AI-driven demand (semiconductor AI revenue up materially and hyperscaler ramps) and management guidance implying faster top‑line growth into Q2 — a tailwind for earnings expectations. Q1 Results & Guidance
- Positive Sentiment: Public confirmation of a custom‑chip relationship with Meta (MTIA) and new optical/400G products strengthen Broadcom’s positioning in hyperscaler AI networking and XPU ecosystems. Meta MTIA & Optical Tech
- Neutral Sentiment: Analyst reaction is mixed — several price‑target raises and bullish notes coexist with critical takes; consensus remains a “Moderate Buy” but creates two‑way trading pressure. Analyst Activity
- Negative Sentiment: Clustered insider selling: multiple executives (including CFO Kirsten Spears and other officers) sold large blocks on March 16–17, which can sap investor confidence and pressure the tape short‑term. Kirsten M. Spears Form 4 (SEC)
- Negative Sentiment: Cloud industry group has petitioned EU regulators for an interim measure over Broadcom’s changes to VMware programs, raising regulatory/legal uncertainty in Europe around its software franchise. EU Interim Measure Request (Reuters)
- Negative Sentiment: Technical downside risk: chart analysts flag a nine‑week symmetrical triangle with a potential breakdown and growing bearish momentum — this can amplify selling if key supports fail. Technical Breakdown Signal
Broadcom Stock Down 2.9%
The firm has a market capitalization of $1.47 trillion, a P/E ratio of 60.65, a PEG ratio of 0.68 and a beta of 1.22. The company has a debt-to-equity ratio of 0.80, a quick ratio of 1.73 and a current ratio of 1.90. The firm’s 50-day moving average is $331.12 and its 200 day moving average is $344.89.
Broadcom (NASDAQ:AVGO – Get Free Report) last released its earnings results on Wednesday, March 4th. The semiconductor manufacturer reported $2.05 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.03 by $0.02. Broadcom had a return on equity of 38.61% and a net margin of 36.57%.The firm had revenue of $19.31 billion during the quarter, compared to analysts’ expectations of $19.10 billion. During the same quarter in the prior year, the company earned $1.60 EPS. The company’s revenue was up 29.5% on a year-over-year basis. As a group, equities research analysts predict that Broadcom Inc. will post 5.38 EPS for the current fiscal year.
Broadcom Dividend Announcement
The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Investors of record on Monday, March 23rd will be issued a dividend of $0.65 per share. The ex-dividend date is Monday, March 23rd. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.8%. Broadcom’s dividend payout ratio (DPR) is presently 50.78%.
Institutional Investors Weigh In On Broadcom
A number of hedge funds and other institutional investors have recently bought and sold shares of the company. Capital Counsel LLC NY bought a new position in Broadcom during the 2nd quarter worth $221,000. Waterloo Capital L.P. raised its holdings in Broadcom by 7.0% in the 2nd quarter. Waterloo Capital L.P. now owns 48,361 shares of the semiconductor manufacturer’s stock valued at $13,331,000 after acquiring an additional 3,180 shares in the last quarter. Providence First Trust Co lifted its position in shares of Broadcom by 1,099.3% during the 3rd quarter. Providence First Trust Co now owns 8,923 shares of the semiconductor manufacturer’s stock valued at $2,944,000 after acquiring an additional 8,179 shares during the period. RiverFront Investment Group LLC lifted its position in shares of Broadcom by 107.6% during the 2nd quarter. RiverFront Investment Group LLC now owns 16,524 shares of the semiconductor manufacturer’s stock valued at $4,555,000 after acquiring an additional 8,566 shares during the period. Finally, Whittier Trust Co. of Nevada Inc. grew its holdings in shares of Broadcom by 3.4% during the 3rd quarter. Whittier Trust Co. of Nevada Inc. now owns 323,587 shares of the semiconductor manufacturer’s stock worth $109,492,000 after purchasing an additional 10,786 shares in the last quarter. Institutional investors and hedge funds own 76.43% of the company’s stock.
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.