ARGA Investment Management LP Decreases Stake in Arrow Electronics, Inc. $ARW

Key Points

• ARGA Investment Management trimmed its Arrow Electronics stake by 3.0% in the first quarter, though the fund still held 333,265 shares valued at about $47.8 million, making ARW its 13th-largest position.
• Arrow Electronics reported better-than-expected Q1 earnings, with EPS of $5.22 versus estimates of $2.92 and revenue of $9.47 billion versus $8.39 billion expected, while revenue rose 39% year over year.
• The company also authorized a $1 billion share buyback, and analysts remain generally constructive on the stock with a consensus rating of Moderate Buy and an average price target of $219.50.

ARGA Investment Management LP cut its stake in shares of Arrow Electronics, Inc. (NYSE:ARW - Free Report) by 3.0% in the first quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 333,265 shares of the technology company's stock after selling 10,402 shares during the quarter. Arrow Electronics makes up approximately 1.6% of ARGA Investment Management LP's portfolio, making the stock its 13th biggest position. ARGA Investment Management LP owned 0.65% of Arrow Electronics worth $47,794,000 at the end of the most recent reporting period.

A number of other large investors have also recently made changes to their positions in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its holdings in Arrow Electronics by 45.9% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 20,748 shares of the technology company's stock worth $2,154,000 after buying an additional 6,523 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Arrow Electronics by 8.0% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 199,971 shares of the technology company's stock worth $20,763,000 after acquiring an additional 14,886 shares in the last quarter. Geneos Wealth Management Inc. raised its position in shares of Arrow Electronics by 68.1% during the 1st quarter. Geneos Wealth Management Inc. now owns 353 shares of the technology company's stock worth $37,000 after acquiring an additional 143 shares in the last quarter. Sivia Capital Partners LLC purchased a new stake in Arrow Electronics during the second quarter worth approximately $492,000. Finally, Walleye Capital LLC acquired a new position in Arrow Electronics in the second quarter valued at approximately $475,000. 99.34% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several equities analysts have commented on the stock. Wells Fargo & Company increased their price target on shares of Arrow Electronics from $140.00 to $165.00 and gave the company an "underweight" rating in a research note on Friday, May 8th. Bank of America upgraded shares of Arrow Electronics from an "underperform" rating to a "neutral" rating and upped their target price for the company from $122.00 to $233.00 in a report on Wednesday, May 13th. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Arrow Electronics in a research report on Tuesday, May 26th. Raymond James Financial reiterated an "outperform" rating and set a $220.00 price target on shares of Arrow Electronics in a research note on Friday, May 8th. Finally, Truist Financial boosted their price target on shares of Arrow Electronics from $240.00 to $260.00 and gave the company a "buy" rating in a research report on Thursday, June 4th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $219.50.

Arrow Electronics Trading Up 0.7%

ARW opened at $206.64 on Friday. The company has a quick ratio of 1.02, a current ratio of 1.24 and a debt-to-equity ratio of 0.35. Arrow Electronics, Inc. has a 52 week low of $101.79 and a 52 week high of $237.33. The business's 50 day moving average is $213.47 and its two-hundred day moving average is $166.82. The firm has a market cap of $10.57 billion, a price-to-earnings ratio of 14.78 and a beta of 1.20.

Arrow Electronics (NYSE:ARW - Get Free Report) last announced its earnings results on Thursday, May 7th. The technology company reported $5.22 earnings per share (EPS) 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 business had revenue of $9.47 billion for the quarter, compared to analyst estimates of $8.39 billion. During the same period last year, the firm posted $1.80 earnings per share. The company's revenue for the quarter 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, research analysts predict that Arrow Electronics, Inc. will post 19.15 EPS for the current year.

Arrow Electronics announced that its board has approved a stock buyback program on Wednesday, May 13th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the technology company to buy up to 9.7% of its stock through open market purchases. Stock repurchase programs are often a sign that the company's board believes its shares are undervalued.

Insider Activity

In related 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 transaction, the senior vice president owned 12,626 shares of the company's stock, valued at $2,727,216. This trade represents a 19.20% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, insider Eric Nowak sold 3,473 shares of the company's stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $210.99, for a total value of $732,768.27. Following the sale, the insider directly owned 48,835 shares of the company's stock, valued at approximately $10,303,696.65. This represents a 6.64% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.80% of the stock is currently owned by corporate insiders.

Arrow Electronics 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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