Arrow Electronics (NYSE:ARW) Shares Gap Down After Analyst Downgrade

Key Points

• Arrow Electronics shares dropped sharply: The stock opened at $209.60 after closing at $222.29 and later traded near $202 following Truist Financial’s price-target reduction from $260 to $250, though Truist maintained its buy rating.
• Recent results and guidance were strong: Second-quarter adjusted EPS of $5.45 and revenue of $9.99 billion exceeded consensus estimates, while third-quarter EPS and revenue guidance also came in above expectations.
• Analyst sentiment remains mixed: Arrow has a consensus “Hold” rating and average price target of $219.50. The company also authorized a $1 billion share-repurchase program, equivalent to up to 9.7% of its shares.

Arrow Electronics, Inc. (NYSE:ARW - Get Free Report)'s stock price gapped down prior to trading on Friday after Truist Financial lowered their price target on the stock from $260.00 to $250.00. The stock had previously closed at $222.29, but opened at $209.60. Truist Financial currently has a buy rating on the stock. Arrow Electronics shares last traded at $202.0850, with a volume of 102,434 shares trading hands.

Other equities research analysts also recently issued research reports about the company. Raymond James Financial reissued an "outperform" rating and set a $220.00 price objective on shares of Arrow Electronics in a report on Friday, May 8th. Weiss Ratings reissued a "buy (b-)" rating on shares of Arrow Electronics in a research note on Tuesday, May 26th. Wall Street Zen upgraded Arrow Electronics from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 25th. Bank of America raised Arrow Electronics from an "underperform" rating to a "neutral" rating and upped their price objective for the company from $122.00 to $233.00 in a research note on Wednesday, May 13th. Finally, Wells Fargo & Company lifted their target price on shares of Arrow Electronics from $165.00 to $175.00 and gave the stock an "underweight" rating in a research report on Monday, July 20th. Three equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $219.50.

Insider Transactions at Arrow Electronics

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

Key Stories Impacting Arrow Electronics

Here are the key news stories impacting Arrow Electronics this week:

• Positive Sentiment: Second-quarter results beat expectations: Arrow Electronics reported adjusted earnings of $5.45 per share, well above the $4.45 consensus estimate and up from $2.43 a year ago. Revenue increased 31.8% year over year to $9.99 billion, exceeding analysts’ $9.67 billion forecast. Arrow Electronics Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Above-consensus third-quarter guidance: Management forecast adjusted EPS of $4.83 to $5.03, compared with the $4.50 analyst consensus, and revenue of $9.6 billion to $10.2 billion versus expectations of $9.5 billion. The outlook signals continued demand and operating momentum. Arrow Electronics Earnings Report
• Neutral Sentiment: Leadership change announced: Arrow appointed Deidra C. Merriwether as president and chief operating officer. Investors may look for additional details on her responsibilities and strategic priorities. Arrow Electronics Appoints Deidra C. Merriwether
• Negative Sentiment: Price target was trimmed: Truist Financial lowered its target for ARW from $260 to $250, although it maintained a “buy” rating. The lower target may be weighing on sentiment, despite implying substantial potential upside from recent trading levels. Benzinga Arrow Electronics Price Target Update

Institutional Trading of Arrow Electronics

A number of large investors have recently bought and sold shares of the business. Private Advisor Group LLC boosted its position in shares of Arrow Electronics by 2.6% during the first quarter. Private Advisor Group LLC now owns 3,054 shares of the technology company's stock valued at $438,000 after buying an additional 78 shares during the last quarter. Root Financial Partners LLC raised its position in Arrow Electronics by 38.9% in the 1st quarter. Root Financial Partners LLC now owns 282 shares of the technology company's stock worth $40,000 after buying an additional 79 shares during the last quarter. Krilogy Financial LLC lifted its stake in Arrow Electronics by 3.2% during the 1st quarter. Krilogy Financial LLC now owns 2,543 shares of the technology company's stock valued at $365,000 after acquiring an additional 80 shares during the period. Gateway Investment Advisers LLC lifted its stake in Arrow Electronics by 3.8% during the 4th quarter. Gateway Investment Advisers LLC now owns 2,276 shares of the technology company's stock valued at $251,000 after acquiring an additional 84 shares during the period. Finally, Oregon Public Employees Retirement Fund boosted its holdings in shares of Arrow Electronics by 0.8% during 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 acquiring an additional 84 shares during the last quarter. 99.34% of the stock is currently owned by institutional investors and hedge funds.

Arrow Electronics Price Performance

The business's 50 day moving average price is $215.99 and its 200 day moving average price is $180.49. The stock has a market capitalization of $10.22 billion, a P/E ratio of 14.30 and a beta of 1.20. The company has a debt-to-equity ratio of 0.35, a current ratio of 1.24 and a quick ratio of 1.02.

Arrow Electronics (NYSE:ARW - Get Free Report) last issued its quarterly earnings data on Thursday, August 6th. The technology company reported $5.45 earnings per share for the quarter, beating analysts' consensus estimates of $4.45 by $1.00. Arrow Electronics had a net margin of 2.17% and a return on equity of 11.40%. The company had revenue of $9.99 billion for the quarter, compared to the consensus estimate of $9.67 billion. During the same quarter in the prior year, the firm earned $2.43 earnings per share. The firm's revenue for the quarter was up 31.8% compared to the same quarter last year. Arrow Electronics has set its Q3 2026 guidance at 4.830-5.030 EPS. Sell-side analysts forecast that Arrow Electronics, Inc. will post 19.15 EPS for the current year.

Arrow Electronics announced that its Board of Directors has authorized a share repurchase plan on Wednesday, May 13th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the technology company to purchase up to 9.7% of its stock through open market purchases. Stock buyback plans are often an indication that the company's management believes its shares are undervalued.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source