Arrow Electronics (NYSE:ARW) Stock Price Breaks Below 200-Day Moving Average - Time to Sell?

Key Points

• Arrow Electronics shares fell below their 200-day moving average, trading as low as $176.42 versus the average of $191.98.
• Fundamentals were strong: third-quarter EPS of $6.22 and revenue of $10.72 billion beat estimates, while fourth-quarter guidance also came in well above forecasts.
• Despite the results, the stock declined; analyst sentiment is mixed, with an average “Hold” rating and an average price target of $233.25.

Arrow Electronics, Inc. (NYSE:ARW - Get Free Report)'s stock price crossed below its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $191.98 and traded as low as $176.42. Arrow Electronics shares last traded at $176.91, with a volume of 1,103,502 shares changing hands.

Key Arrow Electronics News

Here are the key news stories impacting Arrow Electronics this week:

• Positive Sentiment: Third-quarter EPS was $6.22, beating the roughly $5.06 consensus, while revenue of $10.72 billion exceeded expectations of about $10.07 billion and rose 39% year over year. The company described both quarterly revenue and EPS as records. Arrow Electronics Reports Record Quarterly Revenue and EPS
• Positive Sentiment: Arrow’s fourth-quarter outlook was also substantially above forecasts: EPS guidance of $7.00–$7.20 versus consensus of $5.80, and revenue guidance of $11.6–$12.2 billion versus $10.5 billion. Arrow Electronics Q3 Profit Jumps, Issues Q4 Outlook
• Neutral Sentiment: Despite the earnings beat and strong outlook, ARW shares declined. The articles provided do not point to a specific negative development behind the move, so the market reaction appears at odds with the favorable reported results; a “sell-the-news” explanation is possible but not confirmed by this coverage. Arrow Electronics Stock Information

Wall Street Analysts Forecast Growth

ARW has been the topic of several research reports. Truist Financial reduced their price target on shares of Arrow Electronics from $260.00 to $250.00 and set a "buy" rating on the stock in a research report on Friday, August 7th. Raymond James Financial restated an "outperform" rating and issued a $250.00 price objective on shares of Arrow Electronics in a research report on Friday, August 7th. Weiss Ratings raised shares of Arrow Electronics from a "buy (b-)" rating to a "buy (b)" rating in a research note on Thursday, October 8th. Wall Street Zen lowered shares of Arrow Electronics from a "strong-buy" rating to a "buy" rating in a research report on Saturday, September 19th. Finally, Zacks Research cut shares of Arrow Electronics from a "strong-buy" rating to a "hold" rating in a research note on Monday, October 26th. Three equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $233.25.

Arrow Electronics Stock Down 12.7%

The company has a debt-to-equity ratio of 0.29, a current ratio of 1.22 and a quick ratio of 1.01. The stock has a market cap of $9.01 billion, a price-to-earnings ratio of 11.30, a price-to-earnings-growth ratio of 0.30 and a beta of 1.20. The firm has a 50 day simple moving average of $218.45 and a two-hundred day simple moving average of $191.98.

Arrow Electronics (NYSE:ARW - Get Free Report) last posted its earnings results on Thursday, November 5th. The technology company reported $6.22 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.06 by $1.16. The company had revenue of $10.72 billion during the quarter, compared to analyst estimates of $10.07 billion. Arrow Electronics had a return on equity of 13.41% and a net margin of 2.26%. The company's revenue for the quarter was up 39.0% compared to the same quarter last year. During the same period in the previous year, the company earned $2.41 EPS. Arrow Electronics has set its Q4 2026 guidance at 7.000-7.200 EPS. As a group, sell-side analysts expect that Arrow Electronics, Inc. will post 21.24 EPS for the current year.

Insider Buying and Selling at Arrow Electronics

In other news, SVP Carine Jean-Claude sold 1,000 shares of Arrow Electronics stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $209.85, for a total transaction of $209,850.00. Following the transaction, the senior vice president directly owned 11,626 shares of the company's stock, valued at $2,439,716.10. This trade represents a 7.92% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. 0.80% of the stock is currently owned by corporate insiders.

Institutional Trading of Arrow Electronics

Several hedge funds have recently added to or reduced their stakes in ARW. Keating Financial Advisory Services Inc. acquired a new stake in Arrow Electronics in the 2nd quarter valued at about $28,000. Fiduciary Financial Advisors bought a new position in Arrow Electronics during the second quarter worth about $33,000. Jones Financial Companies Lllp acquired a new position in Arrow Electronics during the second quarter worth approximately $37,000. BOK Financial Private Wealth Inc. bought a new stake in Arrow Electronics in the second quarter valued at approximately $47,000. Finally, Evergreen Advisors LLC acquired a new stake in shares of Arrow Electronics in the first quarter valued at approximately $36,000. Institutional investors and hedge funds own 99.34% of the company's stock.

Arrow Electronics Company Profile

Arrow Electronics, Inc is a global distributor of electronic components and enterprise computing solutions. The company connects manufacturers of technology products with customers, including original equipment manufacturers, contract manufacturers, commercial enterprises and government organizations.

Arrow's components business distributes products such as semiconductors, embedded systems, passive and electromechanical components, and related engineering services. Its enterprise computing solutions business provides technology products and services involving data center, cloud, security, networking and software solutions.

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