ARGA Investment Management LP Reduces Position in Arrow Electronics, Inc. $ARW

Key Points

• ARGA Investment Management cut its Arrow Electronics stake by 66.2% in the second quarter, selling 220,680 shares and retaining 112,585 shares worth about $24 million. Institutional investors and hedge funds still own 99.34% of the company.
• Arrow Electronics reported strong quarterly results, with EPS of $5.45 versus the $4.45 consensus and revenue of $9.99 billion, up 31.8% year over year. The board also authorized a $1 billion share-repurchase program covering up to 9.7% of shares.
• Analyst sentiment is mixed, with ratings ranging from buy to sell and a consensus “Hold” rating; the average price target is $233.25 compared with the stock’s reported price of $213.78.

ARGA Investment Management LP decreased its holdings in Arrow Electronics, Inc. (NYSE:ARW - Free Report) by 66.2% in the second quarter, according to its most recent filing with the Securities and Exchange Commission. The firm owned 112,585 shares of the technology company's stock after selling 220,680 shares during the quarter. ARGA Investment Management LP owned 0.22% of Arrow Electronics worth $24,027,000 at the end of the most recent reporting period.

Several other institutional investors also recently bought and sold shares of the company. Bayban acquired a new position in shares of Arrow Electronics during the 1st quarter worth approximately $26,000. Northwestern Mutual Wealth Management Co. increased its position in Arrow Electronics by 112.0% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 248 shares of the technology company's stock worth $27,000 after purchasing an additional 131 shares during the last quarter. Transamerica Financial Advisors LLC purchased a new stake in shares of Arrow Electronics in the 4th quarter valued at approximately $27,000. Advisory Services Network LLC purchased a new stake in Arrow Electronics in the third quarter valued at $31,000. Finally, Quarry LP purchased a new stake in shares of Arrow Electronics in the 3rd quarter valued at approximately $33,000. 99.34% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

ARW has been the subject of several recent research reports. Bank of America upgraded Arrow Electronics from an "underperform" rating to a "neutral" rating and lifted their price objective for the company from $122.00 to $233.00 in a research note on Wednesday, May 13th. Wells Fargo & Company boosted their target price on shares of Arrow Electronics from $175.00 to $200.00 and gave the stock an "underweight" rating in a research report on Friday, August 7th. Raymond James Financial reaffirmed an "outperform" rating and set a $250.00 price target on shares of Arrow Electronics in a research report on Friday, August 7th. Truist Financial reduced their price target on Arrow Electronics from $260.00 to $250.00 and set a "buy" rating on the stock in a research report on Friday, August 7th. Finally, Zacks Research lowered shares of Arrow Electronics from a "strong-buy" rating to a "hold" rating in a report on Monday, August 3rd. Three analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Arrow Electronics presently has an average rating of "Hold" and a consensus price target of $233.25.

Insiders Place Their Bets

In other Arrow Electronics news, insider Eric Nowak sold 3,473 shares of the stock in a transaction dated Wednesday, May 20th. The stock was sold at an average price of $210.99, for a total transaction of $732,768.27. Following the completion of the sale, the insider directly owned 48,835 shares in the company, valued at approximately $10,303,696.65. This trade represents a 6.64% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, SVP Carine Lamercie Jean-Claude sold 3,000 shares of Arrow Electronics stock in a transaction on Friday, May 22nd. The shares were sold at an average price of $216.00, for a total transaction of $648,000.00. Following the completion of the sale, the senior vice president directly owned 12,626 shares of the company's stock, valued at approximately $2,727,216. This trade represents a 19.20% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.80% of the stock is currently owned by company insiders.

Arrow Electronics Stock Up 2.2%

Shares of NYSE:ARW opened at $213.78 on Friday. The company has a 50 day moving average of $214.23 and a 200-day moving average of $183.84. Arrow Electronics, Inc. has a one year low of $101.79 and a one year high of $237.33. The stock has a market cap of $10.88 billion, a price-to-earnings ratio of 13.66, a P/E/G ratio of 0.32 and a beta of 1.20. The company has a debt-to-equity ratio of 0.29, a current ratio of 1.22 and a quick ratio of 1.01.

Arrow Electronics (NYSE:ARW - Get Free Report) last announced its quarterly earnings data on Thursday, August 6th. The technology company reported $5.45 EPS for the quarter, topping analysts' consensus estimates of $4.45 by $1.00. Arrow Electronics had a return on equity of 13.41% and a net margin of 2.26%.The business had revenue of $9.99 billion during the quarter, compared to analysts' expectations of $9.67 billion. During the same period in the previous year, the firm earned $2.43 earnings per share. The firm's quarterly revenue was up 31.8% compared to the same quarter last year. Arrow Electronics has set its Q3 2026 guidance at 4.830-5.030 EPS. On average, sell-side analysts forecast that Arrow Electronics, Inc. will post 20.44 earnings per share for the current year.

Arrow Electronics declared that its board has approved a stock buyback program on Wednesday, May 13th that allows the company to repurchase $1.00 billion in shares. This repurchase authorization allows the technology company to purchase up to 9.7% of its shares through open market purchases. Shares repurchase programs are often an indication that the company's management believes its shares are undervalued.

About Arrow Electronics

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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