Bank of America Corp DE Acquires 26,193 Shares of Arrow Electronics, Inc. $ARW

Key Points

• Bank of America increased its Arrow Electronics stake by 2.6%, acquiring 26,193 additional shares and holding 1.02 million shares worth approximately $145.7 million. Institutional investors collectively own 99.34% of the company.
• Arrow Electronics reported quarterly EPS of $5.22, far exceeding the $2.92 analyst consensus, while revenue rose 39% year over year to $9.47 billion.
• The board authorized a $1 billion share-repurchase program, allowing buybacks of up to 9.7% of outstanding shares. Despite a range of analyst views, the stock carries a consensus “Hold” rating with an average price target of $222.

Bank of America Corp DE grew its holdings in shares of Arrow Electronics, Inc. (NYSE:ARW - Free Report) by 2.6% in the first quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The fund owned 1,015,730 shares of the technology company's stock after acquiring an additional 26,193 shares during the quarter. Bank of America Corp DE owned about 1.99% of Arrow Electronics worth $145,666,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its position in Arrow Electronics by 0.6% during the fourth quarter. Vanguard Group Inc. now owns 6,122,857 shares of the technology company's stock valued at $674,616,000 after acquiring an additional 37,417 shares during the last quarter. ACR Alpine Capital Research LLC boosted its holdings in shares of Arrow Electronics by 3.9% during the first quarter. ACR Alpine Capital Research LLC now owns 3,578,313 shares of the technology company's stock worth $513,166,000 after purchasing an additional 132,720 shares during the period. AQR Capital Management LLC lifted its holdings in Arrow Electronics by 37.7% in the 3rd quarter. AQR Capital Management LLC now owns 3,185,582 shares of the technology company's stock worth $384,818,000 after buying an additional 871,585 shares during the period. Dimensional Fund Advisors LP boosted its holdings in Arrow Electronics by 0.4% in the first quarter. Dimensional Fund Advisors LP now owns 3,007,509 shares of the technology company's stock valued at $431,280,000 after acquiring an additional 11,894 shares in the last quarter. Finally, FIL Ltd increased its position in shares of Arrow Electronics by 33.8% during the fourth quarter. FIL Ltd now owns 1,231,833 shares of the technology company's stock valued at $135,723,000 after buying an additional 310,936 shares during the period. 99.34% of the stock is currently owned by hedge funds and other institutional investors.

Arrow Electronics Stock Performance

ARW opened at $227.40 on Thursday. Arrow Electronics, Inc. has a fifty-two week low of $101.79 and a fifty-two week high of $237.33. The company has a debt-to-equity ratio of 0.35, a quick ratio of 1.02 and a current ratio of 1.24. The company has a fifty day moving average of $215.85 and a 200 day moving average of $179.75. The stock has a market capitalization of $11.63 billion, a price-to-earnings ratio of 16.27 and a beta of 1.20.

Arrow Electronics (NYSE:ARW - Get Free Report) last announced its quarterly earnings results on Thursday, May 7th. The technology company reported $5.22 EPS for the quarter, beating analysts' consensus estimates of $2.92 by $2.30. The company had revenue of $9.47 billion during the quarter, compared to analyst estimates of $8.39 billion. Arrow Electronics had a return on equity of 11.40% and a net margin of 2.17%.The firm's revenue was up 39.0% on a year-over-year basis. During the same period in the prior year, the company earned $1.80 earnings per share. As a group, sell-side analysts forecast that Arrow Electronics, Inc. will post 19.15 earnings per share for the current fiscal year.

Arrow Electronics announced that its board has authorized a stock buyback plan on Wednesday, May 13th that authorizes the company to buyback $1.00 billion in shares. This buyback authorization authorizes the technology company to buy up to 9.7% of its shares through open market purchases. Shares buyback plans are typically a sign that the company's board believes its stock is undervalued.

Insider Transactions at Arrow Electronics

In related news, insider Eric Nowak sold 3,473 shares of the company's stock in a transaction dated Wednesday, May 20th. The shares were sold at an average price of $210.99, for a total transaction of $732,768.27. Following the transaction, the insider directly owned 48,835 shares in the company, valued at approximately $10,303,696.65. This represents a 6.64% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, SVP Carine Lamercie Jean-Claude sold 3,000 shares of the company's stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $216.00, for a total value of $648,000.00. Following the transaction, the senior vice president directly owned 12,626 shares in the company, valued at approximately $2,727,216. This represents a 19.20% decrease in their position. The SEC filing for this sale provides additional information. 0.80% of the stock is currently owned by company insiders.

Wall Street Analysts Forecast Growth

ARW has been the subject of a number of research reports. Wells Fargo & Company increased their price objective on Arrow Electronics from $165.00 to $175.00 and gave the stock an "underweight" rating in a report on Monday, July 20th. Zacks Research lowered Arrow Electronics from a "strong-buy" rating to a "hold" rating in a report on Monday. Wall Street Zen raised shares of Arrow Electronics from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 25th. Bank of America raised Arrow Electronics from an "underperform" rating to a "neutral" rating and increased their target price for the company from $122.00 to $233.00 in a report on Wednesday, May 13th. Finally, Truist Financial lifted their price target on shares of Arrow Electronics from $240.00 to $260.00 and gave the stock a "buy" rating in a research note on Thursday, June 4th. 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 company. According to data from MarketBeat, the stock has a consensus rating of "Hold" and an average price target of $222.00.

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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