Avnet (NASDAQ:AVT) Trading Down 11.8% - Time to Sell?

Key Points

• Avnet's stock price dropped by 11.8%, trading as low as $46.60, with a significant decline in trading volume, down 45% from its average.
• Market analysts have lowered their price targets for Avnet, with Wells Fargo setting a new target of $43.00 and maintaining an "underweight" rating.
• Avnet recently announced a quarterly dividend of $0.33, which reflects an annualized yield of 2.7% and a payout ratio of 36.97%.

Shares of Avnet, Inc. (NASDAQ:AVT - Get Free Report) dropped 11.8% during mid-day trading on Wednesday . The company traded as low as $46.60 and last traded at $45.75. Approximately 449,699 shares changed hands during mid-day trading, a decline of 45% from the average daily volume of 820,829 shares. The stock had previously closed at $51.89.

Analysts Set New Price Targets

AVT has been the topic of a number of analyst reports. Wells Fargo & Company decreased their price objective on shares of Avnet from $45.00 to $43.00 and set an "underweight" rating on the stock in a research report on Thursday, May 1st. Truist Financial boosted their price objective on shares of Avnet from $50.00 to $54.00 and gave the company a "hold" rating in a research report on Thursday.

Avnet Price Performance

The company has a quick ratio of 1.16, a current ratio of 2.43 and a debt-to-equity ratio of 0.51. The firm's 50-day moving average is $53.14 and its 200-day moving average is $50.65. The company has a market cap of $4.36 billion, a PE ratio of 19.04, a PEG ratio of 1.22 and a beta of 1.06.

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

Avnet Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, June 18th. Investors of record on Wednesday, June 4th were paid a dividend of $0.33 per share. The ex-dividend date of this dividend was Wednesday, June 4th. This represents a $1.32 annualized dividend and a yield of 2.5%. Avnet's payout ratio is presently 48.35%.

Insider Buying and Selling

In related news, VP Elizabeth Mcmullen sold 4,000 shares of the business's stock in a transaction dated Tuesday, May 13th. The shares were sold at an average price of $52.80, for a total transaction of $211,200.00. Following the sale, the vice president owned 14,626 shares of the company's stock, valued at $772,252.80. The trade was a 21.48% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. 1.50% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in AVT. Legacy Advisors LLC bought a new position in Avnet during the first quarter valued at approximately $26,000. MassMutual Private Wealth & Trust FSB increased 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 valued at $28,000 after buying an additional 276 shares during the last quarter. GeoWealth Management LLC purchased a new stake in Avnet during the fourth quarter valued at approximately $31,000. Natixis increased its holdings in Avnet by 1,463.8% during the fourth quarter. Natixis now owns 735 shares of the company's stock valued at $38,000 after buying an additional 688 shares during the last quarter. Finally, TD Private Client Wealth LLC increased 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 valued at $39,000 after buying an additional 246 shares during the last quarter. Institutional investors own 95.78% of the company's stock.

Avnet Company Profile

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.