Lakewood Capital Management LP Purchases New Position in Avnet, Inc. $AVT

Key Points

• Lakewood Capital Management purchased 72,000 Avnet shares worth approximately $6.4 million, giving it a 0.09% stake. Institutional investors collectively own 95.78% of the company.
• Avnet reported quarterly earnings of $2.28 per share, beating estimates of $1.80, while revenue rose 47.7% year over year to $8.30 billion. Analysts maintain a “Moderate Buy” consensus rating with a $93.25 target price.
• Avnet increased its quarterly dividend to $0.37 per share, equivalent to a 1.7% annual yield. Meanwhile, CEO Philip Gallagher and SVP Michael McCoy sold shares, reducing their respective holdings by 23.5% and 29.48%.

Lakewood Capital Management LP purchased a new stake in Avnet, Inc. (NASDAQ:AVT - Free Report) during the 2nd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor purchased 72,000 shares of the company's stock, valued at approximately $6,395,000. Lakewood Capital Management LP owned about 0.09% of Avnet as of its most recent SEC filing.

Several other institutional investors have also modified their holdings of AVT. Royal Bank of Canada raised its stake in Avnet by 3.0% during the 1st quarter. Royal Bank of Canada now owns 71,697 shares of the company's stock worth $3,447,000 after acquiring an additional 2,101 shares in the last quarter. Goldman Sachs Group Inc. lifted its position in Avnet by 16.0% in the first quarter. Goldman Sachs Group Inc. now owns 231,814 shares of the company's stock valued at $11,148,000 after acquiring an additional 31,919 shares during the last quarter. United Services Automobile Association acquired a new position in Avnet in the first quarter valued at $267,000. Empowered Funds LLC boosted its stake in Avnet by 9.3% in the first quarter. Empowered Funds LLC now owns 8,142 shares of the company's stock valued at $392,000 after acquiring an additional 696 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in shares of Avnet by 4.9% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 353,757 shares of the company's stock worth $17,012,000 after purchasing an additional 16,443 shares during the last quarter. Hedge funds and other institutional investors own 95.78% of the company's stock.

Avnet Trading Down 2.7%

NASDAQ AVT opened at $86.26 on Tuesday. The firm's fifty day moving average is $89.24 and its two-hundred day moving average is $78.53. Avnet, Inc. has a one year low of $44.25 and a one year high of $100.00. The company has a debt-to-equity ratio of 0.49, a quick ratio of 0.97 and a current ratio of 1.78. The firm has a market cap of $7.08 billion, a PE ratio of 21.62, a P/E/G ratio of 0.27 and a beta of 1.09.

Avnet (NASDAQ:AVT - Get Free Report) last announced its earnings results on Wednesday, August 5th. The company reported $2.28 earnings per share for the quarter, topping the consensus estimate of $1.80 by $0.48. Avnet had a net margin of 1.21% and a return on equity of 9.57%. The business had revenue of $8.30 billion during the quarter, compared to the consensus estimate of $7.56 billion. During the same quarter in the prior year, the firm earned $0.81 earnings per share. The business's quarterly revenue was up 47.7% compared to the same quarter last year. Avnet has set its Q1 2027 guidance at 2.800-2.900 EPS. Analysts expect that Avnet, Inc. will post 10.45 earnings per share for the current year.

Avnet Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 23rd. Shareholders of record on Wednesday, September 9th will be given a dividend of $0.37 per share. This represents a $1.48 dividend on an annualized basis and a yield of 1.7%. The ex-dividend date of this dividend is Wednesday, September 9th. This is a positive change from Avnet's previous quarterly dividend of $0.35. Avnet's payout ratio is 35.09%.

Wall Street Analyst Weigh In

A number of analysts have recently commented on the company. Zacks Research upgraded Avnet from a "hold" rating to a "strong-buy" rating in a research report on Friday, August 7th. Wall Street Zen raised Avnet from a "buy" rating to a "strong-buy" rating in a research report on Saturday, July 25th. Truist Financial raised their price target on Avnet from $95.00 to $110.00 and gave the stock a "buy" rating in a research note on Thursday, August 6th. Weiss Ratings raised Avnet from a "hold (c+)" rating to a "buy (b)" rating in a research report on Friday, August 14th. Finally, Bank of America upgraded Avnet from an "underperform" rating to a "neutral" rating and boosted their price objective for the company from $66.00 to $96.00 in a research note on Wednesday, May 13th. Two analysts have rated the stock with a Strong Buy rating, two have issued a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $93.25.

Insider Buying and Selling

In related news, CEO Philip R. Gallagher sold 51,900 shares of Avnet stock in a transaction on Wednesday, August 12th. The shares were sold at an average price of $98.46, for a total value of $5,110,074.00. Following the transaction, the chief executive officer directly owned 168,923 shares in the company, valued at $16,632,158.58. This trade represents a 23.50% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, SVP Michael Ryan Mccoy sold 32,052 shares of the business's stock in a transaction on Wednesday, August 19th. The shares were sold at an average price of $91.10, for a total transaction of $2,919,937.20. Following the completion of the transaction, the senior vice president directly owned 76,674 shares in the company, valued at $6,985,001.40. This represents a 29.48% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 1.90% of the stock is currently owned by company insiders.

Avnet Profile

Avnet, Inc NASDAQ: AVT is a global technology distributor and solutions provider specializing in the sourcing, design, and supply chain management of electronic components and embedded systems. The company offers a broad portfolio of semiconductors, interconnect, passive and electromechanical components, as well as embedded hardware and software, cloud solutions, and Internet of Things (IoT) services. Avnet's offerings aim to support customers through every stage of the product lifecycle, from initial prototype and design to production and end-of-life management.

Founded in 1921 by Charles Avnet, the company has evolved from a regional radio parts supplier into a multinational enterprise.

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