Royal Bank of Canada Sells 40,791 Shares of Avnet, Inc. $AVT

Key Points

• Royal Bank of Canada cut its Avnet stake by 77.8%, selling 40,791 shares and retaining 11,648 shares worth approximately $717,000. Institutional investors still own 95.78% of the company, with several major funds increasing their positions.
• 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 have also raised forward earnings forecasts, and Zacks maintains a “Strong Buy” rating.
• Avnet raised its quarterly dividend 5.7% to $0.37 per share, implying an annualized yield of about 1.7%. Analyst sentiment is generally positive, with the stock carrying a “Moderate Buy” consensus rating and an average price target of $93.25.

Royal Bank of Canada lessened its stake in shares of Avnet, Inc. (NASDAQ:AVT - Free Report) by 77.8% during the 1st quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 11,648 shares of the company's stock after selling 40,791 shares during the period. Royal Bank of Canada's holdings in Avnet were worth $717,000 as of its most recent SEC filing.

Several other large investors have also modified their holdings of AVT. Dimensional Fund Advisors LP raised its holdings in Avnet by 0.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 5,885,636 shares of the company's stock worth $362,655,000 after acquiring an additional 22,137 shares during the period. AQR Capital Management LLC increased its stake in shares of Avnet by 30.7% in the fourth quarter. AQR Capital Management LLC now owns 2,961,608 shares of the company's stock worth $142,394,000 after purchasing an additional 695,929 shares during the period. LSV Asset Management increased its stake in shares of Avnet by 7.6% in the fourth quarter. LSV Asset Management now owns 2,811,171 shares of the company's stock worth $135,161,000 after purchasing an additional 197,400 shares during the period. Hotchkis & Wiley Capital Management LLC lifted its position in shares of Avnet by 5.3% during the 3rd quarter. Hotchkis & Wiley Capital Management LLC now owns 2,011,676 shares of the company's stock worth $105,170,000 after purchasing an additional 101,873 shares during the last quarter. Finally, Morgan Stanley lifted its position in shares of Avnet by 16.2% during the 4th quarter. Morgan Stanley now owns 1,524,945 shares of the company's stock worth $73,319,000 after purchasing an additional 212,573 shares during the last quarter. 95.78% of the stock is owned by institutional investors.

Avnet News Roundup

Here are the key news stories impacting Avnet this week:

• Positive Sentiment: Broad-based earnings estimate increases: Zacks Research raised its EPS forecasts across multiple periods, including Q1 2027 to $2.85 from $1.53, Q2 2027 to $2.16 from $1.74, Q3 2027 to $1.96 from $1.55, and FY2027 to $9.00 from $6.65. The firm also lifted FY2028 estimates to $9.79 from $7.19 and projects FY2029 EPS of $10.15. Zacks maintains a “Strong-Buy” rating. Zacks Research earnings estimates
• Positive Sentiment: Higher forward-quarter expectations: The firm increased its Q1 2028 forecast to $3.14 from $1.85, Q2 2028 to $2.35 from $1.89, Q3 2028 to $2.06 from $1.66, and Q4 2028 to $2.23 from $1.79. These revisions point to stronger anticipated earnings momentum than previously expected. Avnet forward earnings revisions
• Positive Sentiment: Dividend increase: Avnet declared a quarterly dividend of $0.37 per share, up from $0.35, representing a 5.7% increase. The dividend is payable September 23 to shareholders of record September 9, with an indicated annual yield of approximately 1.7%. Avnet increases quarterly dividend
• Neutral Sentiment: Valuation remains a focus: Zacks is examining whether Avnet is undervalued based on value, growth, momentum, and earnings-estimate trends. The discussion could attract value-oriented investors, although the article details provided do not include a specific valuation conclusion. Are Investors Undervaluing Avnet

Avnet Price Performance

AVT stock opened at $88.64 on Monday. The firm has a 50-day moving average price of $89.35 and a 200-day moving average price of $78.37. The stock has a market capitalization of $7.27 billion, a P/E ratio of 22.22, a price-to-earnings-growth ratio of 0.27 and a beta of 1.09. Avnet, Inc. has a 12 month low of $44.25 and a 12 month high of $100.00. The company has a current ratio of 1.78, a quick ratio of 0.97 and a debt-to-equity ratio of 0.49.

Avnet (NASDAQ:AVT - Get Free Report) last released its quarterly 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. The company had revenue of $8.30 billion for the quarter, compared to analysts' expectations of $7.56 billion. Avnet had a return on equity of 9.57% and a net margin of 1.21%.The business's quarterly revenue was up 47.7% compared to the same quarter last year. During the same period in the previous year, the business posted $0.81 earnings per share. Avnet has set its Q1 2027 guidance at 2.800-2.900 EPS. As a group, equities research analysts anticipate that Avnet, Inc. will post 10.45 EPS for the current fiscal year.

Avnet Increases Dividend

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

Insiders Place Their Bets

In other news, CEO Philip R. Gallagher sold 51,900 shares of the firm's stock in a transaction dated Wednesday, August 12th. The stock was sold at an average price of $98.46, for a total transaction of $5,110,074.00. Following the completion of 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 ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, SVP Michael Ryan Mccoy sold 32,052 shares of Avnet stock in a transaction that occurred on Wednesday, August 19th. The stock was sold at an average price of $91.10, for a total value 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 approximately $6,985,001.40. This represents a 29.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Corporate insiders own 1.90% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on the company. Wells Fargo & Company increased their price objective on Avnet from $70.00 to $72.00 and gave the company an "underweight" rating in a research report on Monday, July 20th. Weiss Ratings upgraded shares of Avnet from a "hold (c+)" rating to a "buy (b)" rating in a research report on Friday, August 14th. Bank of America raised shares of Avnet from an "underperform" rating to a "neutral" rating and increased their price objective for the stock from $66.00 to $96.00 in a report on Wednesday, May 13th. Wall Street Zen raised shares of Avnet from a "buy" rating to a "strong-buy" rating in a research note on Saturday, July 25th. Finally, Truist Financial upped their target price on shares of Avnet from $95.00 to $110.00 and gave the company a "buy" rating in a research note on Thursday, August 6th. Two equities research analysts have rated the stock with a Strong Buy rating, two have given a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $93.25.

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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