Arrow Electronics, Inc. (NYSE:ARW) Receives Average Rating of "Moderate Buy" from Brokerages

Key Points

• Arrow Electronics has a consensus analyst rating of “Moderate Buy” from six firms, with an average 12-month price target of $219.50.
• The company posted strong Q1 results, earning $5.22 per share versus the $2.92 estimate and generating $9.47 billion in revenue, well above expectations.
• Arrow Electronics also authorized a $1 billion stock buyback, while recent insider sales and heavy institutional ownership highlight ongoing investor activity around the stock.

Shares of Arrow Electronics, Inc. (NYSE:ARW - Get Free Report) have received an average rating of "Moderate Buy" from the six ratings firms that are presently covering the company, Marketbeat reports. One equities research analyst has rated the stock with a sell recommendation, one has issued a hold recommendation, three have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 12-month price target among brokerages that have updated their coverage on the stock in the last year is $219.50.

A number of equities analysts have commented on ARW shares. Weiss Ratings restated a "buy (b-)" rating on shares of Arrow Electronics in a research note on Tuesday, May 26th. Wells Fargo & Company raised their price target on Arrow Electronics from $140.00 to $165.00 and gave the stock an "underweight" rating in a research report on Friday, May 8th. Raymond James Financial reaffirmed an "outperform" rating and set a $220.00 price objective on shares of Arrow Electronics in a research report on Friday, May 8th. Bank of America raised shares of Arrow Electronics from an "underperform" rating to a "neutral" rating and raised their target price for the company from $122.00 to $233.00 in a report on Wednesday, May 13th. Finally, Truist Financial boosted their target price on shares of Arrow Electronics from $240.00 to $260.00 and gave the company a "buy" rating in a research report on Thursday, June 4th.

Arrow Electronics Stock Performance

ARW opened at $198.03 on Monday. The company has a debt-to-equity ratio of 0.35, a current ratio of 1.24 and a quick ratio of 1.02. The company has a market capitalization of $10.13 billion, a PE ratio of 14.17 and a beta of 1.20. The business has a fifty day simple moving average of $212.05 and a 200 day simple moving average of $164.10. Arrow Electronics has a 1 year low of $101.79 and a 1 year high of $237.33.

Arrow Electronics (NYSE:ARW - Get Free Report) last announced its earnings results on Thursday, May 7th. The technology company reported $5.22 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.92 by $2.30. The company had revenue of $9.47 billion during the quarter, compared to analysts' expectations of $8.39 billion. Arrow Electronics had a net margin of 2.17% and a return on equity of 11.40%. Arrow Electronics's quarterly revenue was up 39.0% on a year-over-year basis. During the same quarter in the previous year, the business posted $1.80 earnings per share. Arrow Electronics has set its Q2 2026 guidance at 4.32-4.520 EPS. Research analysts expect that Arrow Electronics will post 19.15 EPS for the current year.

Arrow Electronics announced that its board has authorized a stock repurchase program on Wednesday, May 13th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the technology company to repurchase up to 9.7% of its stock through open market purchases. Stock buyback programs are typically a sign that the company's board of directors believes its shares are undervalued.

Insiders Place Their Bets

In other news, insider Eric Nowak sold 3,473 shares of the company's stock in a transaction on Wednesday, May 20th. The shares were sold at an average price of $210.99, for a total transaction of $732,768.27. Following the completion of the transaction, the insider directly owned 48,835 shares in the company, valued at approximately $10,303,696.65. This represents a 6.64% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP Carine Lamercie Jean-Claude sold 3,000 shares of the stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $216.00, for a total value of $648,000.00. Following the completion of the sale, the senior vice president owned 12,626 shares of the company's stock, valued at $2,727,216. The trade was a 19.20% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 0.80% of the company's stock.

Institutional Trading of Arrow Electronics

Hedge funds have recently modified their holdings of the stock. ACR Alpine Capital Research LLC increased its stake in Arrow Electronics by 42.6% in the fourth quarter. ACR Alpine Capital Research LLC now owns 3,445,593 shares of the technology company's stock valued at $379,635,000 after purchasing an additional 1,028,778 shares in the last quarter. AQR Capital Management LLC grew its stake in shares of Arrow Electronics by 37.7% in the 3rd quarter. AQR Capital Management LLC now owns 3,185,582 shares of the technology company's stock valued at $384,818,000 after buying an additional 871,585 shares during the period. Brandes Investment Partners LP grew its stake in shares of Arrow Electronics by 1,412.3% in the 4th quarter. Brandes Investment Partners LP now owns 409,461 shares of the technology company's stock valued at $45,115,000 after buying an additional 382,385 shares during the period. FIL Ltd increased its position in Arrow Electronics by 33.8% in the 4th quarter. FIL Ltd now owns 1,231,833 shares of the technology company's stock valued at $135,723,000 after buying an additional 310,936 shares in the last quarter. Finally, Alyeska Investment Group L.P. acquired a new position in Arrow Electronics during the 4th quarter worth approximately $29,255,000. Institutional investors own 99.34% of the company's stock.

About Arrow Electronics

Arrow Electronics NYSE: ARW is a global provider of products, services and solutions to industrial and commercial users of electronic components and enterprise computing solutions. The company offers a broad portfolio of semiconductors, passives, connectors, electromechanical devices and embedded solutions, serving customers across diverse end markets including automotive, communications, computing, aerospace, defense and healthcare. Through its extensive supplier relationships, Arrow enables design engineers to identify and procure components required for the development of new electronic systems and devices.

In addition to component distribution, Arrow delivers value-added services such as design engineering support, supply chain management, global logistics and technical training.

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