Broadcom Stock Slips Despite Earnings Beat

AVGO posted earnings and revenue that exceeded analysts' estimates

Broadcom Inc (NASDAQ:AVGO) is falling from yesterday's record peak of $330.16, despite posting a fourth-quarter earnings beat of $5.39 per share. The semiconductor concern also lifted its revenue forecast above expectations, but Wall Street remains grim toward the equity, as growth in the semiconductor industry continues to slow. At last check, AVGO is down 1.5% at $322.90.

A round of bull notes couldn't sway investors either. No fewer than eight brokerages hiked their price targets, including Craig-Hallum, which lifted its estimate to a street high of $385 from $330. What's more, RBC reinstated coverage with an "outperform" rating, and a $360 price target. The consensus 12-month price target is now at $340.82 -- slightly north of current levels. Prior to today, 16 of those in coverage called AVGO a "buy" or better, while four called it a "hold."

This bullishness among the brokerage bunch shouldn't be surprising. As we previously mentioned, AVGO snapped up a new high just yesterday, and it's been an impressive run on the charts these past few months, with recent support emerging at the ascending 30-day moving average. For the year, Broadcom stock has added 28%.

Regardless, in the options pits, short-term players haven't been more put-heavy. The stock's Schaeffer's open interest ratio (SOIR) of 1.30 sits in the 88th percentile of its annual range.