MFG Wealth Management Inc. Sells 2,422 Shares of Broadcom Inc. $AVGO

Key Points

• MFG Wealth Management cut its Broadcom stake by 42.4% in the second quarter, selling 2,422 shares and retaining 3,286 shares valued at approximately $1.24 million. Institutional investors own 76.43% of Broadcom.
• Broadcom reported strong quarterly results, including $22.19 billion in revenue, 47.9% year-over-year growth, and $2.44 in adjusted EPS. AI demand remains a key growth driver, with AI semiconductor revenue up 143% to $10.8 billion and bookings exceeding $30 billion.
• Analysts maintain a favorable outlook, with 28 Buy ratings and a consensus price target of $493.24 versus a recent price of $427.76. However, insider selling and Broadcom’s elevated valuation—including a P/E ratio above 71—highlight potential risks.

MFG Wealth Management Inc. lowered its holdings in shares of Broadcom Inc. (NASDAQ:AVGO - Free Report) by 42.4% in the second quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 3,286 shares of the semiconductor manufacturer's stock after selling 2,422 shares during the period. MFG Wealth Management Inc.'s holdings in Broadcom were worth $1,241,000 as of its most recent filing with the SEC.

Other institutional investors and hedge funds have also modified their holdings of the company. ROSS JOHNSON & Associates LLC lifted its stake in shares of Broadcom by 1,320.0% in the 4th quarter. ROSS JOHNSON & Associates LLC now owns 71 shares of the semiconductor manufacturer's stock valued at $25,000 after acquiring an additional 66 shares during the last quarter. SWAN Capital LLC boosted its holdings in shares of Broadcom by 261.9% during the 4th quarter. SWAN Capital LLC now owns 76 shares of the semiconductor manufacturer's stock valued at $26,000 after acquiring an additional 55 shares in the last quarter. Networth Advisors LLC grew its position in Broadcom by 546.2% during the 1st quarter. Networth Advisors LLC now owns 84 shares of the semiconductor manufacturer's stock worth $26,000 after acquiring an additional 71 shares during the last quarter. Nvest Wealth Strategies Inc. bought a new stake in Broadcom during the 4th quarter worth $33,000. Finally, Family CFO Inc acquired a new position in Broadcom in the 4th quarter worth about $35,000. 76.43% of the stock is currently owned by institutional investors.

Key Broadcom News

Here are the key news stories impacting Broadcom this week:

• Positive Sentiment: AI demand remains the primary catalyst. Analysts highlighted Broadcom’s record quarterly revenue of approximately $22.2 billion, 79% growth in semiconductor revenue, 143% growth in AI semiconductor revenue to $10.8 billion and more than $30 billion in AI bookings. The figures support the view that hyperscaler spending on custom chips, networking and connectivity is still expanding. Is the AI Selloff a Buying Opportunity? The Data Says Yes
• Positive Sentiment: Broadcom is being positioned as a beneficiary of AI infrastructure bottlenecks. Commentary identified networking equipment, optical interconnects and power delivery as supply-constrained areas, with Broadcom named among companies that could benefit as data-center construction accelerates. Other reports described the company as a leading AI infrastructure stock and a potentially attractive long-term chip investment. Beyond NVIDIA and GPUs: The Next AI and Quantum Winners Leading 2026 3 AI Infrastructure Stocks That Could Make You Rich in August
• Positive Sentiment: Product updates add support for Broadcom’s software business. New capabilities for VMware vDefend and Avi Load Balancer are intended to improve cybersecurity, performance and operational efficiency in private-cloud environments, potentially strengthening Broadcom’s infrastructure-software offering as enterprises prepare for AI workloads. Broadcom Enables Enterprises to Strengthen Multi-Layer Cyber Defense and Operational Efficiency
• Neutral Sentiment: Broadcom was included in stock screens favoring companies with high returns on equity and strong earnings growth. The favorable fundamental profile supports investor interest, but the articles offered no new company-specific financial data. 5 High ROE Stocks to Buy as Oil Price Surge Hits Short-Term Rally
• Negative Sentiment: Risks include stretched valuation and broader-market concerns. Coverage warned that AI stocks may face a normal pullback after a strong rally, while oil-price increases could revive inflation concerns. One investment firm also disclosed that it sold 3,867 Broadcom shares, though the transaction appears minor relative to the company’s overall market value. SCS Capital Trims Broadcom Stake

Insider Activity

In other Broadcom news, Director Gayla J. Delly sold 1,890 shares of the company's stock in a transaction on Wednesday, July 8th. The shares were sold at an average price of $385.38, for a total transaction of $728,368.20. Following the sale, the director owned 31,326 shares of the company's stock, valued at approximately $12,072,413.88. This represents a 5.69% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Mark David Brazeal sold 25,000 shares of the stock in a transaction dated Friday, July 10th. The stock was 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. The trade was a 11.36% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 61,644 shares of company stock valued at $24,016,214. 1.90% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

Several research firms have commented on AVGO. DA Davidson increased their target price on Broadcom from $375.00 to $400.00 and gave the company a "neutral" rating in a research report on Thursday, June 4th. Oppenheimer restated an "outperform" rating and set a $535.00 price target (up from $450.00) on shares of Broadcom in a report on Thursday, June 4th. Truist Financial upped their price objective on Broadcom from $545.00 to $550.00 and gave the company a "buy" rating in a research note on Thursday, June 4th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a $515.00 price objective (up from $430.00) on shares of Broadcom in a report on Thursday, June 4th. Finally, TD Cowen reiterated a "buy" rating and set a $500.00 target price on shares of Broadcom in a research report on Thursday, June 4th. Twenty-eight research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, Broadcom presently has a consensus rating of "Moderate Buy" and a consensus price target of $493.24.

Broadcom Stock Up 1.7%

Shares of AVGO opened at $427.76 on Friday. Broadcom Inc. has a 12 month low of $281.87 and a 12 month high of $495.00. The company has a current ratio of 2.24, a quick ratio of 2.01 and a debt-to-equity ratio of 0.71. The company has a market capitalization of $2.04 trillion, a PE ratio of 71.29, a PEG ratio of 0.80 and a beta of 1.45. The stock's 50-day moving average price is $392.99 and its two-hundred day moving average price is $370.45.

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

Broadcom Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Monday, June 22nd were given a $0.65 dividend. The ex-dividend date was Monday, June 22nd. This represents a $2.60 dividend on an annualized basis and a dividend yield of 0.6%. Broadcom's payout ratio is 43.33%.

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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