Broadcom Inc. $AVGO is Bahl & Gaynor Inc.’s Largest Position

Bahl & Gaynor trimmed its Broadcom position by 7.1% in Q2, selling 308,748 shares and retaining 4.03M shares (about $1.11bn), leaving Broadcom as its largest holding; institutional ownership of AVGO is roughly 76.4%. Operationally Broadcom slightly beat the quarter—$1.69 EPS vs. $1.66 est. and $15.95bn revenue, up 22% YoY—with a 31.6% net margin and ROE of 36.6%, and it pays a $0.59 quarterly dividend (≈0.7% yield, 60% payout ratio). However, significant insider selling (16,558 shares by Mark Brazeal and 665k shares sold over three months totaling ~$225m) contrasts with widespread analyst upgrades and higher price targets (consensus ~$374), suggesting continued bullish analyst sentiment amid watchfulness around insider flows and valuation.

Analysis

Bahl & Gaynor reduced its Broadcom stake by 7.1% in Q2, selling 308,748 shares and retaining 4,030,369 shares worth about $1.111 billion, with Broadcom remaining its largest holding and institutional ownership at roughly 76.43%. Concurrently, insiders have been net sellers: Mark David Brazeal sold 16,558 shares at an average $347.61 on Sept. 17 and filings show insiders sold 665,271 shares valued at ~$225.5 million over three months while buying only 3,550 shares.

Operationally Broadcom beat consensus in the most recent quarter with $1.69 EPS versus $1.66 and revenue of $15.95 billion versus $15.82 billion, representing 22% year‑over‑year revenue growth, a 31.6% net margin and 36.6% ROE. The company pays a $0.59 quarterly dividend (annualized $2.36, 0.7% yield) with a payout ratio around 60.2%, and management provided Q4 2025 EPS guidance; analysts have materially raised targets (consensus ~$374.21, range $370–$420).

The mix of strong fundamentals and elevated analyst targets supports a constructive medium‑term thesis, but meaningful insider selling and a large concentrated institutional base introduce short‑term liquidity and sentiment risk that could amplify price moves despite the recent beat.

Key Decisions for Investors

• Given the quarter beat, consider adding to positions on material pullbacks or if shares trade meaningfully below the consensus target of $374, size purchases incrementally to limit timing risk
• Monitor insider transactions and institutional flows closely—rising insider selling or further large fund trims should prompt re‑evaluation or tightening of stops
• If already long, contemplate modest profit‑taking or hedging (e.g., collars or put protection) to manage downside risk from sentiment shocks given concentrated ownership
• Income‑focused investors should not buy for yield alone: the 0.7% yield and ~60% payout ratio suggest limited income upside relative to growth exposure