Wedge Capital Management L L P NC Makes New Investment in Arrow Electronics, Inc. $ARW

Key Points

• Wedge Capital Management initiated a 338,823-share position in Arrow Electronics valued at approximately $72.3 million, representing about 1.2% of its portfolio and 0.66% of Arrow’s outstanding shares.
• Arrow Electronics reported strong quarterly results, with earnings of $5.45 per share versus the $4.45 consensus estimate and revenue of $9.99 billion, up 31.8% year over year.
• Analyst sentiment is mixed, with an overall “Hold” rating and an average price target of $233.25. The company also authorized a $1 billion share repurchase program, covering up to 9.7% of outstanding shares.

Wedge Capital Management L L P NC bought a new stake in Arrow Electronics, Inc. (NYSE:ARW - Free Report) during the second quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm bought 338,823 shares of the technology company's stock, valued at approximately $72,308,000. Arrow Electronics makes up approximately 1.2% of Wedge Capital Management L L P NC's investment portfolio, making the stock its 21st biggest position. Wedge Capital Management L L P NC owned approximately 0.66% of Arrow Electronics at the end of the most recent reporting period.

Several other hedge funds also recently modified their holdings of the stock. Bayban bought a new stake in Arrow Electronics during the first quarter worth $26,000. Northwestern Mutual Wealth Management Co. lifted its stake in Arrow Electronics by 112.0% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 248 shares of the technology company's stock valued at $27,000 after acquiring an additional 131 shares in the last quarter. Transamerica Financial Advisors LLC bought a new position in Arrow Electronics during the 4th quarter valued at $27,000. Advisory Services Network LLC purchased a new position in Arrow Electronics during the 3rd quarter worth $31,000. Finally, Quarry LP purchased a new position in Arrow Electronics during the 3rd quarter worth $33,000. Hedge funds and other institutional investors own 99.34% of the company's stock.

Wall Street Analyst Weigh In

A number of analysts recently commented on the company. Zacks Research downgraded Arrow Electronics from a "strong-buy" rating to a "hold" rating in a research report on Monday, August 3rd. Truist Financial decreased their target price on Arrow Electronics from $260.00 to $250.00 and set a "buy" rating for the company in a research report on Friday, August 7th. Raymond James Financial reissued an "outperform" rating and issued a $250.00 price target on shares of Arrow Electronics in a report on Friday. Weiss Ratings restated a "buy (b-)" rating on shares of Arrow Electronics in a research report on Tuesday, May 26th. Finally, Wells Fargo & Company lifted their price objective 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. Three analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Arrow Electronics has an average rating of "Hold" and an average target price of $233.25.

Arrow Electronics Stock Performance

NYSE:ARW opened at $206.41 on Wednesday. The company has a market capitalization of $10.55 billion, a P/E ratio of 13.19, a P/E/G ratio of 0.31 and a beta of 1.20. The business has a fifty day simple moving average of $215.03 and a two-hundred day simple moving average of $182.33. 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, Inc. has a 1 year low of $101.79 and a 1 year high of $237.33.

Arrow Electronics (NYSE:ARW - Get Free Report) last posted its quarterly earnings results on Thursday, August 6th. The technology company reported $5.45 earnings per share for the quarter, topping the consensus estimate of $4.45 by $1.00. Arrow Electronics had a return on equity of 13.41% and a net margin of 2.26%.The company had revenue of $9.99 billion during the quarter, compared to the consensus estimate of $9.67 billion. During the same quarter in the prior year, the company earned $2.43 EPS. 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, analysts expect that Arrow Electronics, Inc. will post 20.44 earnings per share for the current year.

Arrow Electronics announced that its board has initiated a share repurchase plan on Wednesday, May 13th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the technology company to repurchase up to 9.7% of its stock through open market purchases. Stock buyback plans are generally an indication 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 that occurred on Wednesday, May 20th. The shares were sold at an average price of $210.99, for a total transaction of $732,768.27. Following the sale, 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 filing with the SEC, which can be accessed through this hyperlink. Also, SVP Carine Lamercie Jean-Claude sold 3,000 shares of the firm's stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $216.00, for a total transaction of $648,000.00. Following the completion of the transaction, 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 owned by company insiders.

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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