Arrow Electronics (NYSE:ARW) Shares Gap Down - Here's Why

Key Points

• Arrow Electronics shares fell from $127.00 to open at $120.83, continuing to trade around $120.06 with a volume of 65,428 shares.
• Recent analyst ratings include a buy upgrade from Wall Street Zen, while Bank of America set a price target of $110.00, indicating mixed investor sentiment.
• CEO Sean J. Kerins increased his stake in the company by purchasing 8,630 shares for around $991,673, reflecting confidence in the company's future performance.

Arrow Electronics, Inc. (NYSE:ARW - Get Free Report) shares gapped down prior to trading on Wednesday . The stock had previously closed at $127.00, but opened at $120.83. Arrow Electronics shares last traded at $120.06, with a volume of 65,428 shares changing hands.

Wall Street Analyst Weigh In

A number of equities research analysts recently issued reports on ARW shares. Bank of America upped their price objective on shares of Arrow Electronics from $105.00 to $110.00 and gave the company an "underperform" rating in a report on Monday, June 9th. Wall Street Zen raised shares of Arrow Electronics from a "hold" rating to a "buy" rating in a report on Saturday, July 26th. One equities research analyst has rated the stock with a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Reduce" and a consensus price target of $115.75.

Arrow Electronics Stock Performance

The stock has a market cap of $6.27 billion, a PE ratio of 13.77, a PEG ratio of 0.58 and a beta of 1.09. The stock has a fifty day simple moving average of $125.60 and a two-hundred day simple moving average of $118.26. The company has a debt-to-equity ratio of 0.37, a quick ratio of 1.07 and a current ratio of 1.39.

Arrow Electronics (NYSE:ARW - Get Free Report) last announced its earnings results on Thursday, July 31st. The technology company reported $2.43 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.03 by $0.40. The company had revenue of $7.58 billion for the quarter, compared to analyst estimates of $7.12 billion. Arrow Electronics had a return on equity of 8.37% and a net margin of 1.64%.Arrow Electronics's quarterly revenue was up 10.0% on a year-over-year basis. During the same period in the prior year, the company posted $2.78 EPS. Arrow Electronics has set its Q3 2025 guidance at 2.160-2.360 EPS. Equities analysts anticipate that Arrow Electronics, Inc. will post 10.57 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CEO Sean J. Kerins acquired 8,630 shares of the stock in a transaction that occurred on Friday, August 1st. The stock was purchased at an average cost of $114.91 per share, for a total transaction of $991,673.30. Following the purchase, the chief executive officer directly owned 122,408 shares in the company, valued at $14,065,903.28. This represents a 7.58% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is accessible through this link. 1.00% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Wealth Enhancement Advisory Services LLC raised its position in Arrow Electronics by 33.6% in the first quarter. Wealth Enhancement Advisory Services LLC now owns 11,864 shares of the technology company's stock worth $1,232,000 after acquiring an additional 2,982 shares in the last quarter. Caxton Associates LLP acquired a new position in shares of Arrow Electronics in the 1st quarter valued at $501,000. Golden State Wealth Management LLC boosted its position in shares of Arrow Electronics by 111.7% in the 1st quarter. Golden State Wealth Management LLC now owns 379 shares of the technology company's stock valued at $39,000 after purchasing an additional 200 shares during the period. SG Americas Securities LLC acquired a new position in shares of Arrow Electronics in the 1st quarter valued at $356,000. Finally, OMNI 360 Wealth Inc. acquired a new stake in Arrow Electronics during the 2nd quarter worth about $263,000. Institutional investors own 99.34% of the company's stock.

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.