Arrow Electronics (NYSE:ARW) Downgraded by Zacks Research to Hold

Key Points

• Zacks Research downgraded Arrow Electronics from “strong buy” to “hold.” Despite mixed analyst views, the stock has an average “hold” rating and a consensus price target of $222.
• Arrow reported strong quarterly results, with EPS of $5.22 versus estimates of $2.92 and revenue of $9.47 billion, up 39% year over year. Shares were trading near $227.95, up 5.1%.
• The board authorized a $1 billion share-repurchase program, allowing the company to buy back up to 9.7% of outstanding shares, while institutional investors own 99.34% of the stock.

Arrow Electronics (NYSE:ARW - Get Free Report) was downgraded by analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research note issued on Monday,Zacks.com reports.

A number of other equities research analysts also recently commented on the company. Raymond James Financial reaffirmed an "outperform" rating and set a $220.00 target price on shares of Arrow Electronics in a report on Friday, May 8th. Bank of America upgraded Arrow Electronics from an "underperform" rating to a "neutral" rating and lifted their price target for the company from $122.00 to $233.00 in a research note on Wednesday, May 13th. Wells Fargo & Company upped their target price on Arrow Electronics from $165.00 to $175.00 and gave the stock an "underweight" rating in a research note on Monday, July 20th. Wall Street Zen upgraded Arrow Electronics from a "buy" rating to a "strong-buy" rating in a research report on Saturday, July 25th. Finally, Weiss Ratings reissued a "buy (b-)" rating on shares of Arrow Electronics in a research note on Tuesday, May 26th. Three analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $222.00.

Arrow Electronics Trading Up 5.1%

Shares of NYSE ARW opened at $227.95 on Monday. The company has a quick ratio of 1.02, a current ratio of 1.24 and a debt-to-equity ratio of 0.35. The firm has a market cap of $11.65 billion, a PE ratio of 16.31 and a beta of 1.20. The business has a fifty day simple moving average of $215.65 and a two-hundred day simple moving average of $178.98. Arrow Electronics has a twelve month low of $101.79 and a twelve month 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 EPS for the quarter, topping analysts' consensus estimates of $2.92 by $2.30. Arrow Electronics had a net margin of 2.17% and a return on equity of 11.40%. The business had revenue of $9.47 billion during the quarter, compared to the consensus estimate of $8.39 billion. During the same period in the previous year, the company posted $1.80 earnings per share. The firm's revenue was up 39.0% on a year-over-year basis. Arrow Electronics has set its Q2 2026 guidance at 4.32-4.520 EPS. Analysts expect that Arrow Electronics will post 19.15 earnings per share for the current fiscal year.

Arrow Electronics declared that its Board of Directors has approved a share repurchase plan on Wednesday, May 13th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the technology company to repurchase up to 9.7% of its stock through open market purchases. Stock buyback plans are often a sign that the company's board of directors believes its stock is undervalued.

Insider Buying and Selling

In other news, insider Eric Nowak sold 3,473 shares of Arrow Electronics 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 sale, the insider directly owned 48,835 shares of the company's stock, valued at approximately $10,303,696.65. The trade was a 6.64% decrease in their position. The transaction was disclosed in a document filed 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 dated 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 transaction, the senior vice president owned 12,626 shares in the company, valued at approximately $2,727,216. The trade was a 19.20% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.80% of the stock is owned by insiders.

Institutional Investors Weigh In On Arrow Electronics

Several hedge funds have recently made changes to their positions in ARW. Private Advisor Group LLC increased its position in Arrow Electronics by 2.6% in the 1st quarter. Private Advisor Group LLC now owns 3,054 shares of the technology company's stock valued at $438,000 after acquiring an additional 78 shares during the period. Root Financial Partners LLC lifted its position in Arrow Electronics by 38.9% during the 1st quarter. Root Financial Partners LLC now owns 282 shares of the technology company's stock worth $40,000 after acquiring an additional 79 shares during the period. Krilogy Financial LLC grew its stake in shares of Arrow Electronics by 3.2% in the 1st quarter. Krilogy Financial LLC now owns 2,543 shares of the technology company's stock valued at $365,000 after purchasing an additional 80 shares during the last quarter. Gateway Investment Advisers LLC grew its stake in shares of Arrow Electronics by 3.8% in the 4th quarter. Gateway Investment Advisers LLC now owns 2,276 shares of the technology company's stock valued at $251,000 after purchasing an additional 84 shares during the last quarter. Finally, Oregon Public Employees Retirement Fund grew its stake in shares of Arrow Electronics by 0.8% in the 2nd quarter. Oregon Public Employees Retirement Fund now owns 10,567 shares of the technology company's stock valued at $2,255,000 after purchasing an additional 84 shares during the last quarter. Institutional investors and hedge funds 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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