Avnet (NASDAQ:AVT) Sees Large Volume Increase - Still a Buy?

Key Points

• Avnet experienced an impressive 179% increase in trading volume, with approximately 2.3 million shares traded compared to 828,067 shares in the previous session.
• The company announced a quarterly dividend increase from $0.33 to $0.35, representing an annualized dividend of $1.40 and a yield of 2.7%.
• Avnet reported earnings of $0.81 per share, exceeding analysts' estimates, with quarterly revenue of $5.62 billion, marking a 1.0% year-over-year increase.

Shares of Avnet, Inc. (NASDAQ:AVT - Get Free Report) saw unusually-high trading volume on Wednesday . Approximately 2,306,747 shares changed hands during mid-day trading, an increase of 179% from the previous session's volume of 828,067 shares.The stock last traded at $52.34 and had previously closed at $52.05.

Wall Street Analysts Forecast Growth

AVT has been the subject of several recent research reports. Truist Financial lifted their price objective on Avnet from $50.00 to $54.00 and gave the company a "hold" rating in a report on Thursday, August 7th. Bank of America boosted their price target on Avnet from $48.00 to $50.00 and gave the stock an "underperform" rating in a research note on Monday, August 11th. One analyst has rated the stock with a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat, Avnet has an average rating of "Sell" and an average price target of $49.00.

Avnet Trading Up 0.4%

The company has a 50 day moving average of $54.13 and a 200 day moving average of $51.01. The company has a debt-to-equity ratio of 0.51, a quick ratio of 1.16 and a current ratio of 2.43. The stock has a market capitalization of $4.49 billion, a price-to-earnings ratio of 19.70, a P/E/G ratio of 0.40 and a beta of 1.08.

Avnet (NASDAQ:AVT - Get Free Report) last posted its quarterly earnings results on Wednesday, August 6th. The company reported $0.81 EPS for the quarter, topping the consensus estimate of $0.72 by $0.09. Avnet had a return on equity of 6.07% and a net margin of 1.08%.The business had revenue of $5.62 billion for the quarter, compared to analyst estimates of $5.36 billion. During the same quarter in the previous year, the firm earned $1.22 EPS. The company's quarterly revenue was up 1.0% compared to the same quarter last year. On average, research analysts predict that Avnet, Inc. will post 3.41 EPS for the current fiscal year.

Avnet Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Friday, September 26th. Stockholders of record on Wednesday, September 17th will be given a dividend of $0.35 per share. This is a boost from Avnet's previous quarterly dividend of $0.33. This represents a $1.40 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date of this dividend is Wednesday, September 17th. Avnet's dividend payout ratio is presently 51.28%.

Institutional Investors Weigh In On Avnet

Several institutional investors have recently added to or reduced their stakes in AVT. Hexagon Capital Partners LLC lifted its stake in Avnet by 12.9% in the first quarter. Hexagon Capital Partners LLC now owns 1,822 shares of the company's stock valued at $88,000 after buying an additional 208 shares during the last quarter. Public Employees Retirement System of Ohio raised its stake in shares of Avnet by 0.8% during the second quarter. Public Employees Retirement System of Ohio now owns 26,674 shares of the company's stock worth $1,416,000 after purchasing an additional 211 shares during the last quarter. TD Private Client Wealth LLC grew its holdings in Avnet by 43.0% during the first quarter. TD Private Client Wealth LLC now owns 818 shares of the company's stock worth $39,000 after acquiring an additional 246 shares during the period. DekaBank Deutsche Girozentrale grew its holdings in Avnet by 7.4% during the first quarter. DekaBank Deutsche Girozentrale now owns 3,972 shares of the company's stock worth $185,000 after acquiring an additional 275 shares during the period. Finally, MassMutual Private Wealth & Trust FSB grew its holdings in Avnet by 109.5% during the second quarter. MassMutual Private Wealth & Trust FSB now owns 528 shares of the company's stock worth $28,000 after acquiring an additional 276 shares during the period. Hedge funds and other institutional investors own 95.78% of the company's stock.

About Avnet

Avnet, Inc, distributes electronic component technology. The company operates through two segments, Electronic Components and Farnell. The Electronic Components segment markets, sells, and distributes semiconductors; interconnect, passive, and electromechanical components; and other integrated components from electronic component manufacturers.