Arcadia Investment Management Corp MI Reduces Holdings in Broadcom Inc. $AVGO

Key Points

• Arcadia Investment Management trimmed its Broadcom stake by 5.1% in the fourth quarter, selling 7,311 shares and leaving it with 136,460 shares worth about $47.2 million. Broadcom remains the firm’s largest holding, representing 7.7% of its portfolio.
• Broadcom’s latest earnings beat expectations, with EPS of $2.44 on revenue of $22.19 billion, both slightly above forecasts and up 47.9% year over year. The company also highlighted strong free cash flow and raised its quarterly dividend to $0.65 per share.
• Despite the strong results, the stock fell about 12.6% as investors reacted to weaker-than-expected AI revenue guidance for the next quarter. Analysts mostly remain positive, with several firms raising price targets and the consensus rating still sitting at Moderate Buy.

Arcadia Investment Management Corp MI reduced its stake in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 5.1% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 136,460 shares of the semiconductor manufacturer's stock after selling 7,311 shares during the period. Broadcom accounts for 7.7% of Arcadia Investment Management Corp MI's holdings, making the stock its biggest holding. Arcadia Investment Management Corp MI's holdings in Broadcom were worth $47,229,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

A number of other hedge funds have also added to or reduced their stakes in the stock. Brighton Jones LLC increased its position in shares of Broadcom by 21.8% during the fourth quarter. Brighton Jones LLC now owns 29,683 shares of the semiconductor manufacturer's stock worth $6,882,000 after purchasing an additional 5,322 shares in the last quarter. Revolve Wealth Partners LLC lifted its stake in Broadcom by 10.4% during the 4th quarter. Revolve Wealth Partners LLC now owns 7,997 shares of the semiconductor manufacturer's stock valued at $1,854,000 after acquiring an additional 756 shares during the period. United Bank increased its holdings in shares of Broadcom by 76.5% during the 1st quarter. United Bank now owns 2,339 shares of the semiconductor manufacturer's stock valued at $392,000 after purchasing an additional 1,014 shares in the last quarter. Sivia Capital Partners LLC increased its holdings in shares of Broadcom by 10.1% during the 2nd quarter. Sivia Capital Partners LLC now owns 12,693 shares of the semiconductor manufacturer's stock valued at $3,499,000 after purchasing an additional 1,160 shares in the last quarter. Finally, Capital & Planning LLC increased its holdings in shares of Broadcom by 10.5% during the 2nd quarter. Capital & Planning LLC now owns 3,983 shares of the semiconductor manufacturer's stock valued at $1,098,000 after purchasing an additional 378 shares in the last quarter. 76.43% of the stock is currently owned by institutional investors.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom still delivered record second-quarter revenue of $22.19 billion, topped EPS estimates, and generated strong free cash flow, showing underlying business strength. Broadcom Inc. Announces Second Quarter Fiscal Year 2026 Financial Results and Quarterly Dividend
• Positive Sentiment: AI semiconductor revenue surged 143% year over year to $10.8 billion, and management signaled continued demand from hyperscale customers. Broadcom's sales and AI chip forecast comes in below expectations, shares tumble
• Positive Sentiment: Several analysts raised price targets after the report, including JPMorgan, Bank of America, Mizuho, and Benchmark, indicating Street optimism remains intact despite the selloff. Benzinga analyst target updates
• Neutral Sentiment: Broadcom declared a quarterly dividend of $0.65 per share, reinforcing its shareholder-return profile but not enough to offset the earnings-driven volatility.
• Negative Sentiment: The stock sold off because third-quarter AI revenue guidance came in below elevated expectations, raising concerns that AI growth may be normalizing faster than investors hoped. Broadcom: AI guidance gap reveals the cost of sky-high expectations
• Negative Sentiment: Broadcom’s disappointment sparked a broader semiconductor retreat, pressuring chip stocks and contributing to weakness in the Nasdaq. Micron, Marvell, and Broadcom lead chipmakers' premarket losses

Broadcom Stock Down 12.6%

Shares of AVGO opened at $418.91 on Friday. Broadcom Inc. has a 52-week low of $241.11 and a 52-week high of $495.00. The company has a market capitalization of $1.98 trillion, a PE ratio of 69.82, a price-to-earnings-growth ratio of 0.99 and a beta of 1.41. The stock has a fifty day simple moving average of $394.88 and a two-hundred day simple moving average of $361.73. The company has a quick ratio of 1.73, a current ratio of 1.90 and a debt-to-equity ratio of 0.80.

Broadcom (NASDAQ:AVGO - Get Free Report) last issued its earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.40 by $0.04. Broadcom had a return on equity of 42.88% and a net margin of 38.85%.The business had revenue of $22.19 billion during the quarter, compared to the consensus estimate of $22.13 billion. During the same period last year, the company earned $1.58 EPS. The company's revenue for the quarter was up 47.9% on a year-over-year basis. As a group, equities analysts forecast that Broadcom Inc. will post 9.89 EPS for the current year.

Broadcom Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, June 30th. Shareholders of record on Monday, June 22nd will be paid a $0.65 dividend. The ex-dividend date of this dividend is Monday, June 22nd. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.6%. Broadcom's dividend payout ratio (DPR) is 50.78%.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on AVGO shares. Morgan Stanley set a $502.00 price target on shares of Broadcom and gave the company an "overweight" rating in a research note on Thursday. Royal Bank Of Canada lifted their price target on shares of Broadcom from $360.00 to $400.00 and gave the company a "sector perform" rating in a research note on Thursday. Oppenheimer reissued an "outperform" rating and issued a $535.00 price target (up from $450.00) on shares of Broadcom in a research note on Thursday. Wall Street Zen cut shares of Broadcom from a "buy" rating to a "hold" rating in a research note on Saturday, May 30th. Finally, Cantor Fitzgerald restated an "overweight" rating and issued a $525.00 price objective on shares of Broadcom in a report on Thursday. One analyst has rated the stock with a Strong Buy rating, twenty-eight have given a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $490.13.

Insiders Place Their Bets

In other news, insider S. Ram Velaga sold 8,000 shares of the company's stock in a transaction on Friday, April 10th. The stock was sold at an average price of $370.52, for a total value of $2,964,160.00. Following the transaction, the insider owned 57,932 shares of the company's stock, valued at $21,464,964.64. This represents a 12.13% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Mark David Brazeal sold 50,488 shares of the firm's stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $321.60, for a total value of $16,236,940.80. Following the sale, the insider directly owned 278,141 shares of the company's stock, valued at $89,450,145.60. The trade was a 15.36% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 324,282 shares of company stock worth $106,425,249. 1.90% of the stock is currently owned by company insiders.

About Broadcom

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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