Arrow Electronics (NYSE:ARW) Upgraded to Neutral at Bank of America

Key Points

• Bank of America upgraded Arrow Electronics from underperform to neutral and set a $233 price target, implying about 15.9% upside from the prior close.
• Arrow Electronics continues to receive mixed but mostly positive analyst sentiment, with several firms raising targets or ratings; the overall consensus is Moderate Buy with an average price target of $214.50.
• The company reported strong Q1 results, including $5.22 EPS versus $2.92 expected and $9.47 billion in revenue versus $8.39 billion estimated, alongside revenue growth of 39% year over year.

Arrow Electronics (NYSE:ARW - Get Free Report) was upgraded by analysts at Bank of America from an "underperform" rating to a "neutral" rating in a research report issued to clients and investors on Wednesday. The firm presently has a $233.00 price objective on the technology company's stock. Bank of America's price target indicates a potential upside of 15.87% from the company's previous close.

Several other brokerages also recently issued reports on ARW. Raymond James Financial reiterated an "outperform" rating and set a $220.00 price target on shares of Arrow Electronics in a report on Friday. Weiss Ratings upgraded shares of Arrow Electronics from a "hold (c+)" rating to a "buy (b-)" rating in a report on Thursday, February 26th. Truist Financial boosted their price target on shares of Arrow Electronics from $183.00 to $240.00 and gave the stock a "buy" rating in a report on Thursday, May 7th. Wells Fargo & Company upped their price objective on shares of Arrow Electronics from $140.00 to $165.00 and gave the stock an "underweight" rating in a research report on Friday. Finally, Zacks Research raised shares of Arrow Electronics from a "hold" rating to a "strong-buy" rating in a research report on Monday, February 9th. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average price target of $214.50.

Arrow Electronics Stock Down 0.7%

Shares of NYSE ARW opened at $201.09 on Wednesday. The company has a debt-to-equity ratio of 0.35, a current ratio of 1.24 and a quick ratio of 1.02. The company has a 50-day moving average price of $160.09 and a 200-day moving average price of $135.29. The stock has a market capitalization of $10.28 billion, a P/E ratio of 14.38, a P/E/G ratio of 0.88 and a beta of 1.16. Arrow Electronics has a 1 year low of $101.79 and a 1 year high of $206.07.

Arrow Electronics (NYSE:ARW - Get Free Report) last posted its earnings results on Thursday, May 7th. The technology company reported $5.22 earnings per share 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 company had revenue of $9.47 billion for the quarter, compared to analyst estimates of $8.39 billion. During the same quarter in the prior year, the business posted $1.80 EPS. The firm's revenue was up 39.0% compared to the same quarter last year. Arrow Electronics has set its Q2 2026 guidance at 4.32-4.520 EPS. On average, equities research analysts forecast that Arrow Electronics will post 15.11 EPS for the current fiscal year.

Insider Transactions at Arrow Electronics

In other news, insider Richard John Marano sold 2,500 shares of the stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $155.32, for a total transaction of $388,300.00. Following the completion of the transaction, the insider directly owned 24,096 shares of the company's stock, valued at $3,742,590.72. This represents a 9.40% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO William F. Austen purchased 3,960 shares of the firm's stock in a transaction dated Thursday, February 19th. The shares were bought at an average price of $151.87 per share, with a total value of $601,405.20. Following the purchase, the chief executive officer owned 44,722 shares in the company, valued at $6,791,930.14. The trade was a 9.71% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 0.80% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the company. ACR Alpine Capital Research LLC boosted its holdings 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 worth $379,635,000 after buying an additional 1,028,778 shares during the period. AQR Capital Management LLC boosted its holdings in shares of Arrow Electronics by 37.7% in the third 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 grew its position in shares of Arrow Electronics by 1,412.3% in the fourth quarter. Brandes Investment Partners LP now owns 409,461 shares of the technology company's stock valued at $45,115,000 after purchasing an additional 382,385 shares in the last quarter. FIL Ltd raised its stake in shares of Arrow Electronics by 33.8% during the 4th quarter. FIL Ltd now owns 1,231,833 shares of the technology company's stock valued at $135,723,000 after purchasing an additional 310,936 shares during the period. Finally, Envestnet Asset Management Inc. raised its stake in shares of Arrow Electronics by 197.2% during the 3rd quarter. Envestnet Asset Management Inc. now owns 458,036 shares of the technology company's stock valued at $55,422,000 after purchasing an additional 303,942 shares during the period. Institutional investors own 99.34% of the company's stock.

Arrow Electronics Company Profile

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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