Arrow Electronics (NYSE:ARW) Sets New 1-Year High - Here's What Happened

Key Points

• Arrow Electronics hit a new 52-week high, trading as high as $236.57 after recently closing at $232.70, reflecting strong momentum in the stock.
• The company reported a much better-than-expected quarterly earnings result, with EPS of $5.22 versus $2.92 expected and revenue of $9.47 billion versus $8.39 billion estimated.
• Analyst sentiment remains constructive overall, with several firms raising price targets and the stock carrying a Moderate Buy consensus rating; Arrow also authorized a $1 billion share buyback.

Arrow Electronics, Inc. (NYSE:ARW - Get Free Report)'s share price reached a new 52-week high during mid-day trading on Monday . The stock traded as high as $236.57 and last traded at $234.73, with a volume of 52563 shares traded. The stock had previously closed at $232.70.

Wall Street Analysts Forecast Growth

Several research firms recently commented on ARW. Truist Financial increased their target price on Arrow Electronics from $240.00 to $260.00 and gave the company a "buy" rating in a report on Thursday, June 4th. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Arrow Electronics in a report on Tuesday, May 26th. Bank of America raised Arrow Electronics from an "underperform" rating to a "neutral" rating and upped their price objective for the stock from $122.00 to $233.00 in a research report on Wednesday, May 13th. Wells Fargo & Company increased their price objective on Arrow Electronics from $140.00 to $165.00 and gave the company an "underweight" rating in a report on Friday, May 8th. Finally, Raymond James Financial reissued an "outperform" rating and set a $220.00 target price on shares of Arrow Electronics in a research report on Friday, May 8th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $219.50.

Arrow Electronics Price Performance

The company has a debt-to-equity ratio of 0.35, a quick ratio of 1.02 and a current ratio of 1.24. The stock's 50-day moving average is $203.08 and its 200 day moving average is $156.82. The stock has a market capitalization of $12.04 billion, a PE ratio of 16.81 and a beta of 1.19.

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

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

Insider Transactions at Arrow Electronics

In related news, insider Eric Nowak sold 3,473 shares of the firm's stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $210.99, for a total transaction of $732,768.27. Following the transaction, the insider owned 48,835 shares in the company, valued at $10,303,696.65. This trade represents a 6.64% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, SVP Carine Lamercie Jean-Claude sold 3,000 shares of the business's stock in a transaction that occurred 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 approximately $2,727,216. This represents a 19.20% decrease in their position. The SEC filing for this sale provides additional information. 0.80% of the stock is owned by corporate insiders.

Institutional Trading of Arrow Electronics

A number of large investors have recently bought and sold shares of ARW. ACR Alpine Capital Research LLC increased its stake in Arrow Electronics by 42.6% in the 4th quarter. ACR Alpine Capital Research LLC now owns 3,445,593 shares of the technology company's stock valued at $379,635,000 after buying an additional 1,028,778 shares during the period. AQR Capital Management LLC lifted 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 worth $384,818,000 after acquiring an additional 871,585 shares during the period. Brandes Investment Partners LP lifted 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 worth $45,115,000 after acquiring an additional 382,385 shares during the period. FIL Ltd boosted its holdings in shares of Arrow Electronics by 33.8% in the fourth quarter. FIL Ltd now owns 1,231,833 shares of the technology company's stock valued at $135,723,000 after acquiring an additional 310,936 shares in the last quarter. Finally, Alyeska Investment Group L.P. purchased a new stake in shares of Arrow Electronics in the fourth quarter valued at about $29,255,000. 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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