Avnet (NASDAQ:AVT) Sets New 52-Week High - Should You Buy?

Key Points

• Avnet shares reached a new 52-week high of $101.55 and were recently trading around $101.66, up 3.3%, despite the consensus price target of $93.25.
• The company reported strong quarterly results, with adjusted earnings of $2.28 per share versus the $1.80 estimate and revenue of $8.30 billion, up 47.7% year over year. Analysts’ consensus rating is “Moderate Buy,” with several firms recently raising their ratings or price targets.
• Avnet increased its quarterly dividend from $0.35 to $0.37 per share, implying a 1.5% annual yield. However, the CEO and a senior vice president recently sold substantial portions of their holdings, while institutional investors own 95.78% of the stock.

Avnet, Inc. (NASDAQ:AVT - Get Free Report) hit a new 52-week high on Wednesday . The stock traded as high as $101.55 and last traded at $101.66, with a volume of 297372 shares changing hands. The stock had previously closed at $98.25.

Wall Street Analysts Forecast Growth

Several research analysts recently commented on AVT shares. Zacks Research raised Avnet from a "hold" rating to a "strong-buy" rating in a research report on Friday, August 7th. Truist Financial upped their price objective on Avnet from $95.00 to $110.00 and gave the stock a "buy" rating in a research note on Thursday, August 6th. Wall Street Zen raised Avnet from a "buy" rating to a "strong-buy" rating in a report on Saturday, July 25th. Wells Fargo & Company boosted their target price on shares of Avnet from $70.00 to $72.00 and gave the stock an "underweight" rating in a report on Monday, July 20th. Finally, Weiss Ratings raised shares of Avnet from a "hold (c+)" rating to a "buy (b)" rating in a research report on Friday, August 14th. Two equities research analysts have rated the stock with a Strong Buy rating, two have issued a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus price target of $93.25.

Avnet Stock Up 3.3%

The stock has a market cap of $8.33 billion, a P/E ratio of 25.51, a price-to-earnings-growth ratio of 0.29 and a beta of 1.10. The firm has a 50 day simple moving average of $91.41 and a 200-day simple moving average of $82.47. The company has a quick ratio of 0.97, a current ratio of 1.78 and a debt-to-equity ratio of 0.49.

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

Avnet Increases Dividend

The company also recently declared 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 boost from Avnet's previous quarterly dividend of $0.35. The ex-dividend date is Wednesday, September 9th. This represents a $1.48 annualized dividend and a yield of 1.5%. Avnet's dividend payout ratio is presently 37.09%.

Insiders Place Their Bets

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

Institutional Investors Weigh In On Avnet

A number of hedge funds and other institutional investors have recently made changes to their positions in AVT. BlackRock Inc. acquired a new stake in Avnet during the second quarter worth approximately $916,146,000. Dimensional Fund Advisors LP grew its holdings in shares of Avnet by 0.4% during the 1st quarter. Dimensional Fund Advisors LP now owns 5,885,636 shares of the company's stock worth $362,655,000 after purchasing an additional 22,137 shares in the last quarter. Pzena Investment Management LLC acquired a new stake in shares of Avnet during the 2nd quarter worth $277,153,000. Norges Bank bought a new position in shares of Avnet in the fourth quarter worth $62,393,000. Finally, Bank of America Corp DE raised its stake in Avnet by 6.4% in the first quarter. Bank of America Corp DE now owns 1,166,847 shares of the company's stock valued at $71,901,000 after purchasing an additional 70,345 shares in the last quarter. 95.78% of the stock is currently owned by institutional investors and hedge funds.

About Avnet

Avnet, Inc is a global technology distributor that helps manufacturers, engineers and other customers source electronic components and develop products. The company connects semiconductor and electronic-component suppliers with original equipment manufacturers, electronic manufacturing services providers and independent design firms.

Its offerings include semiconductors, embedded processors and computing products, memory, interconnect solutions, passive and electromechanical components, and related hardware and software.

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