Arrow Electronics (NYSE:ARW) Trading Down 8.7% - Here's What Happened

Key Points

• Arrow Electronics shares dropped 8.7% to around $118.54, with trading volume declining by 45% compared to the average session.
• Despite the stock's current struggles, analysts have mixed ratings, including upgrades to a "buy" from Wall Street Zen, while others maintain a "hold" or "underperform" stance.
• Insider transactions revealed significant stock sales by company executives, with a total of 9,070 shares sold over the past three months.

Arrow Electronics, Inc. (NYSE:ARW - Get Free Report)'s share price fell 8.7% on Thursday . The company traded as low as $120.60 and last traded at $118.54. 300,194 shares were traded during trading, a decline of 45% from the average session volume of 543,022 shares. The stock had previously closed at $129.78.

Wall Street Analyst Weigh In

A number of brokerages recently weighed in on ARW. Wall Street Zen upgraded shares of Arrow Electronics from a "hold" rating to a "buy" rating in a research report on Saturday, July 26th. Bank of America increased their price objective on shares of Arrow Electronics from $105.00 to $110.00 and gave the company an "underperform" rating in a research report on Monday, June 9th. Two investment analysts have rated the stock with a sell rating, one has assigned a hold rating and two have assigned a buy rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $115.75.

Arrow Electronics Trading Up 0.1%

The firm has a market capitalization of $5.95 billion, a PE ratio of 12.97, a PEG ratio of 0.57 and a beta of 1.10. The company has a quick ratio of 1.07, a current ratio of 1.39 and a debt-to-equity ratio of 0.37. The stock's fifty day simple moving average is $126.06 and its 200 day simple moving average is $115.27.

Arrow Electronics (NYSE:ARW - Get Free Report) last announced its earnings results on Thursday, July 31st. The technology company reported $2.43 EPS for the quarter, beating analysts' consensus estimates of $2.03 by $0.40. Arrow Electronics had a net margin of 1.64% and a return on equity of 8.37%. The business had revenue of $7.58 billion during the quarter, compared to analysts' expectations of $7.12 billion. During the same period in the prior year, the company earned $2.78 earnings per share. The firm's revenue was up 10.0% on a year-over-year basis. On average, sell-side analysts predict that Arrow Electronics, Inc. will post 10.57 earnings per share for the current year.

Insider Transactions at Arrow Electronics

In other news, insider Eric Nowak sold 4,952 shares of the stock in a transaction on Monday, May 12th. The shares were sold at an average price of $122.39, for a total value of $606,075.28. Following the completion of the sale, the insider directly owned 43,895 shares of the company's stock, valued at $5,372,309.05. This represents a 10.14% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Gail Hamilton sold 1,458 shares of the stock in a transaction on Monday, May 12th. The stock was sold at an average price of $122.39, for a total transaction of $178,444.62. Following the completion of the sale, the director directly owned 101 shares of the company's stock, valued at approximately $12,361.39. This trade represents a 93.52% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 9,070 shares of company stock valued at $1,116,062 over the last three months. Corporate insiders own 1.00% of the company's stock.

Institutional Trading of Arrow Electronics

A number of hedge funds and other institutional investors have recently modified their holdings of ARW. Dimensional Fund Advisors LP boosted its position in shares of Arrow Electronics by 3.2% during the fourth quarter. Dimensional Fund Advisors LP now owns 2,930,459 shares of the technology company's stock worth $331,493,000 after acquiring an additional 91,310 shares during the last quarter. ACR Alpine Capital Research LLC boosted its position in shares of Arrow Electronics by 2,391.7% during the second quarter. ACR Alpine Capital Research LLC now owns 2,156,373 shares of the technology company's stock worth $274,787,000 after acquiring an additional 2,069,832 shares during the last quarter. Greenhaven Associates Inc. boosted its position in shares of Arrow Electronics by 0.5% during the first quarter. Greenhaven Associates Inc. now owns 1,913,757 shares of the technology company's stock worth $198,705,000 after acquiring an additional 8,900 shares during the last quarter. Fiduciary Management Inc. WI boosted its position in shares of Arrow Electronics by 44.1% during the fourth quarter. Fiduciary Management Inc. WI now owns 1,548,925 shares of the technology company's stock worth $175,214,000 after acquiring an additional 473,909 shares during the last quarter. Finally, Earnest Partners LLC boosted its position in shares of Arrow Electronics by 5.5% during the fourth quarter. Earnest Partners LLC now owns 1,486,157 shares of the technology company's stock worth $168,114,000 after acquiring an additional 77,396 shares during the last quarter. 99.34% of the stock is owned by hedge funds and other institutional investors.

Arrow Electronics Company Profile

Arrow Electronics, Inc provides products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates in two segments, Global Components and Global Enterprise Computing Solutions.