Arrow Electronics, Inc. (ARW) Upgraded to Buy at Zacks Investment Research
Arrow Electronics, Inc. (NYSE:ARW) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a note issued to investors on Monday. The brokerage currently has a $90.00 price target on the technology company’s stock. Zacks Investment Research‘s target price points to a potential upside of 12.16% from the company’s current price.
According to Zacks, “Estimates for Electronic component distributor, Arrow Electronics have moved north of late. Shares of the company have also outperformed the industry over the last one year. Original equipment manufacturers, contract manufacturers and commercial customers are selecting Arrow’s strong distribution channels for marketing their products, which is driving its revenues. We believe that the company’s core strength in providing best-in-class services and easy-to-acquire technologies should drive growth in the long run. Moreover, the company has secured a significant market share through a broad portfolio of products and services, and continued efforts to maximize consumer satisfaction. Additionally, incremental sales from strategic acquisitions are expected to boost the top line. However, an uncertain economic environment, high debt burden and competition remain the concerns.”
ARW has been the subject of a number of other research reports. BidaskClub lowered Arrow Electronics from a “strong-buy” rating to a “buy” rating in a report on Wednesday, August 2nd. Stifel Nicolaus reaffirmed a “buy” rating and issued a $86.00 price target on shares of Arrow Electronics in a research note on Tuesday, September 12th. Finally, Deutsche Bank AG reaffirmed a “hold” rating and issued a $81.00 price target (up from $76.00) on shares of Arrow Electronics in a research note on Wednesday, August 9th. One analyst has rated the stock with a sell rating, two have issued a hold rating and four have assigned a buy rating to the stock. Arrow Electronics presently has an average rating of “Hold” and an average price target of $80.20.
Arrow Electronics (NYSE:ARW) last released its earnings results on Thursday, August 3rd. The technology company reported $1.78 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.77 by $0.01. The company had revenue of $6.47 billion during the quarter, compared to analyst estimates of $6.23 billion. Arrow Electronics had a return on equity of 13.52% and a net margin of 2.01%. The company’s revenue for the quarter was up 8.3% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.65 earnings per share.
In other news, insider Sean J. Kerins sold 4,477 shares of the company’s stock in a transaction on Friday, August 25th. The shares were sold at an average price of $77.16, for a total value of $345,445.32. Following the transaction, the insider now directly owns 26,213 shares of the company’s stock, valued at $2,022,595.08. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, Chairman Michael J. Long sold 20,910 shares of the company’s stock in a transaction on Monday, August 14th. The stock was sold at an average price of $76.01, for a total transaction of $1,589,369.10. Following the completion of the transaction, the chairman now directly owns 346,486 shares in the company, valued at $26,336,400.86. The disclosure for this sale can be found here. Corporate insiders own 1.20% of the company’s stock.
Hedge funds and other institutional investors have recently bought and sold shares of the company. Legal & General Group Plc increased its stake in shares of Arrow Electronics by 5.1% in the second quarter. Legal & General Group Plc now owns 544,809 shares of the technology company’s stock worth $42,725,000 after acquiring an additional 26,591 shares during the last quarter. Pacer Advisors Inc. increased its position in Arrow Electronics by 14.8% during the second quarter. Pacer Advisors Inc. now owns 12,812 shares of the technology company’s stock worth $1,005,000 after buying an additional 1,650 shares during the last quarter. Morgan Stanley increased its position in Arrow Electronics by 97.5% during the first quarter. Morgan Stanley now owns 441,079 shares of the technology company’s stock worth $32,380,000 after buying an additional 217,695 shares during the last quarter. Bank of Nova Scotia acquired a new position in Arrow Electronics during the first quarter worth $2,423,000. Finally, Stifel Financial Corp increased its position in Arrow Electronics by 100.8% during the first quarter. Stifel Financial Corp now owns 9,078 shares of the technology company’s stock worth $661,000 after buying an additional 4,556 shares during the last quarter. 93.15% of the stock is currently owned by institutional investors and hedge funds.
About Arrow Electronics
Arrow Electronics, Inc is a provider of products, services and solutions to industrial and commercial users of electronic components and enterprise computing solutions. The Company has a portfolio of product offerings available from various electronic components and enterprise computing solutions suppliers.
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