Fairbanks Capital Management Inc. Sells 12,908 Shares of Broadcom Inc. $AVGO

Key Points

• Fairbanks Capital Management cut its Broadcom stake by 45.7% in the first quarter, selling 12,908 shares and leaving it with 15,361 shares valued at about $4.75 million.
• Broadcom’s latest earnings beat expectations, with quarterly EPS of $2.44 versus $2.40 expected and revenue of $22.19 billion, up 47.9% year over year.
• Analysts remain mostly bullish on AVGO, with a consensus rating of Moderate Buy and an average price target of $493.24, even as some recent insider selling and mixed sentiment around the semiconductor sector continue.

Fairbanks Capital Management Inc. decreased its position in Broadcom Inc. (NASDAQ:AVGO - Free Report) by 45.7% in the first quarter, according to its most recent Form 13F filing with the SEC. The firm owned 15,361 shares of the semiconductor manufacturer's stock after selling 12,908 shares during the period. Broadcom accounts for about 2.9% of Fairbanks Capital Management Inc.'s investment portfolio, making the stock its 14th biggest position. Fairbanks Capital Management Inc.'s holdings in Broadcom were worth $4,754,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. Norges Bank purchased a new stake in shares of Broadcom in the 4th quarter worth $24,252,196,000. Cardano Risk Management B.V. grew its position in shares of Broadcom by 895.2% during the 4th quarter. Cardano Risk Management B.V. now owns 12,689,800 shares of the semiconductor manufacturer's stock worth $4,391,940,000 after buying an additional 11,414,701 shares in the last quarter. State Street Corp increased its stake in shares of Broadcom by 2.7% during the fourth quarter. State Street Corp now owns 190,084,351 shares of the semiconductor manufacturer's stock valued at $65,788,194,000 after buying an additional 5,040,801 shares during the period. Vanguard Group Inc. increased its stake in shares of Broadcom by 0.8% during the fourth quarter. Vanguard Group Inc. now owns 482,707,302 shares of the semiconductor manufacturer's stock valued at $167,064,997,000 after buying an additional 3,919,715 shares during the period. Finally, Arrowstreet Capital Limited Partnership raised its holdings in shares of Broadcom by 52.5% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 8,593,629 shares of the semiconductor manufacturer's stock valued at $2,974,255,000 after acquiring an additional 2,959,397 shares in the last quarter. Institutional investors own 76.43% of the company's stock.

Insider Activity

In other news, Director Justine Page sold 1,602 shares of the company's stock in a transaction on Monday, June 29th. The stock was sold at an average price of $373.86, for a total transaction of $598,923.72. Following the transaction, the director directly owned 17,426 shares of the company's stock, valued at approximately $6,514,884.36. This represents a 8.42% 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 25,000 shares of the stock in a transaction on Friday, July 10th. The shares were sold at an average price of $401.33, for a total value of $10,033,250.00. Following the sale, the insider owned 194,989 shares of the company's stock, valued at approximately $78,254,935.37. This represents a 11.36% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders sold 61,644 shares of company stock worth $24,016,214. 1.90% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

A number of analysts recently weighed in on the stock. Oppenheimer reaffirmed an "outperform" rating and issued a $535.00 price objective (up from $450.00) on shares of Broadcom in a research note on Thursday, June 4th. Wall Street Zen downgraded shares of Broadcom from a "strong-buy" rating to a "buy" rating in a research report on Saturday, July 18th. Zacks Research lowered shares of Broadcom from a "strong-buy" rating to a "hold" rating in a report on Thursday, May 21st. Bank of America upped their price target on shares of Broadcom from $450.00 to $530.00 and gave the stock a "buy" rating in a research report on Thursday, June 4th. Finally, Rosenblatt Securities reissued a "buy" rating and set a $500.00 price objective on shares of Broadcom in a report on Thursday, June 4th. One investment analyst has rated the stock with a Strong Buy rating, twenty-eight have issued a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $493.24.

Broadcom Price Performance

AVGO opened at $381.92 on Friday. The firm has a market capitalization of $1.82 trillion, a PE ratio of 63.65, a price-to-earnings-growth ratio of 0.73 and a beta of 1.45. The company has a debt-to-equity ratio of 0.71, a current ratio of 2.24 and a quick ratio of 2.01. The business's 50-day moving average is $397.42 and its two-hundred day moving average is $366.68. Broadcom Inc. has a 1 year low of $281.61 and a 1 year high of $495.00.

Broadcom (NASDAQ:AVGO - Get Free Report) last released its quarterly earnings results on Wednesday, June 3rd. The semiconductor manufacturer reported $2.44 EPS for the quarter, beating the consensus estimate of $2.40 by $0.04. Broadcom had a net margin of 38.85% and a return on equity of 41.61%. The business had revenue of $22.19 billion during the quarter, compared to analyst estimates of $22.13 billion. During the same period in the prior year, the firm posted $1.58 earnings per share. The company's quarterly revenue was up 47.9% on a year-over-year basis. Research analysts anticipate that Broadcom Inc. will post 10.24 earnings per share for the current fiscal year.

Broadcom Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Monday, June 22nd were paid a dividend of $0.65 per share. This represents a $2.60 annualized dividend and a dividend yield of 0.7%. The ex-dividend date was Monday, June 22nd. Broadcom's payout ratio is 43.33%.

Trending Headlines about Broadcom

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: Broadcom continues to be viewed as one of the strongest AI infrastructure names, with articles highlighting durable AI bookings, customer commitments through 2028, and the company’s importance in data center networking. Article Title
• Positive Sentiment: Several bullish commentary pieces argue the recent AI pullback is a buying opportunity, with analysts and market writers saying Broadcom still has room to grow and should benefit from continued AI spending. Article Title
• Positive Sentiment: TSMC’s planned price increases could reinforce pricing power for leading AI chip suppliers like Broadcom, which may support margins and investor confidence if demand remains strong. Article Title
• Positive Sentiment: Institutional buying also offered a constructive signal, as Alecta Pensionsförsäkring reportedly boosted its Broadcom stake by 99,200 shares. Article Title
• Neutral Sentiment: Broadcom was mentioned in a broader semiconductor sector piece saying the group is consolidating after a strong 2026 rally, with concerns around valuation and leveraged positioning contributing to July weakness across the chip space. Article Title
• Neutral Sentiment: Broadcom was also included in general “high ROE” and dividend-focused articles, reinforcing its quality profile but not adding a major new catalyst. Article Title
• Negative Sentiment: One headline noted a “large increase” in short interest in Broadcom during July, but the reported figures showed zero shares short, so this appears to be a data anomaly rather than a meaningful bearish signal. Article Title

Broadcom 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.

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