Avnet (NASDAQ:AVT) Stock Breaks Below 200 Day Moving Average - Time to Sell?

Key Points

• Avnet shares fell below their 200-day moving average, trading as low as $76.57 versus the $81.42 average; the article also reports the stock was down 10.6%.
• The company delivered a strong quarter, with EPS of $3.63 versus $2.86 expected and revenue of $10.72 billion versus $9.22 billion expected, up 81.7% year over year. Management cited continued demand and margin gains and gave upbeat revenue guidance for the next quarter.
• Despite strong demand, tightening supply and rising working-capital needs may constrain growth. Analyst views are mixed, though the consensus rating is “Moderate Buy” with an average price target of $100.25.

Shares of Avnet, Inc. (NASDAQ:AVT - Get Free Report) crossed below its 200-day moving average during trading on Thursday. The stock has a 200-day moving average of $81.42 and traded as low as $76.57. Avnet shares last traded at $76.63, with a volume of 2,207,596 shares.

Key Avnet News

Here are the key news stories impacting Avnet this week:

• Positive Sentiment: Avnet reported EPS of $3.63, beating the $2.86 consensus, and revenue of $10.72 billion versus expectations of $9.22 billion. Revenue rose 81.7% year over year, supported by broad-based demand and higher memory pricing. Avnet Q1 earnings beat estimates on record sales and strong demand
• Positive Sentiment: Management pointed to continued demand strength and margin gains, and issued upbeat fiscal Q2 revenue guidance, signaling momentum into the next quarter. Q1 earnings call highlights
• Positive Sentiment: Truist raised its price target to $125 from $110 and maintained a Buy rating. Wells Fargo also raised its target, to $85 from $80, but kept an Underweight rating. Truist analyst recommendations Wells Fargo price-target report
• Negative Sentiment: Despite the earnings beat, Avnet faces tightening supply and rising working-capital requirements as it meets strong demand. Those constraints could temper the benefit of rapid sales growth and may help explain the negative market reaction. Q3 CY2026 business deep dive

Analysts Set New Price Targets

Several brokerages recently issued reports on AVT. Wall Street Zen raised shares of Avnet from a "buy" rating to a "strong-buy" rating in a report on Saturday, October 17th. Truist Financial upped their price objective on shares of Avnet from $110.00 to $125.00 and gave the stock a "buy" rating in a research report on Thursday. Weiss Ratings raised shares of Avnet from a "buy (b-)" rating to a "buy (b)" rating in a research note on Friday, October 9th. Zacks Research lowered shares of Avnet from a "strong-buy" rating to a "hold" rating in a research report on Monday, October 19th. Finally, Wells Fargo & Company raised their target price on shares of Avnet from $80.00 to $85.00 and gave the company an "underweight" rating in a research report on Thursday. One research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $100.25.

Avnet Stock Down 10.6%

The company has a debt-to-equity ratio of 0.63, a quick ratio of 0.97 and a current ratio of 1.73. The stock has a market capitalization of $6.30 billion, a P/E ratio of 11.51, a price-to-earnings-growth ratio of 0.26 and a beta of 1.11. The stock's fifty day simple moving average is $94.48 and its two-hundred day simple moving average is $81.42.

Avnet (NASDAQ:AVT - Get Free Report) last released its quarterly earnings results on Wednesday, November 4th. The company reported $3.63 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.86 by $0.77. The firm had revenue of $10.72 billion during the quarter, compared to the consensus estimate of $9.22 billion. Avnet had a net margin of 1.74% and a return on equity of 14.15%. The company's revenue for the quarter was up 81.7% on a year-over-year basis. During the same quarter last year, the firm earned $0.84 earnings per share. As a group, research analysts expect that Avnet, Inc. will post 10.45 EPS for the current fiscal year.

Avnet Increases Dividend

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 23rd. Shareholders of record on Wednesday, September 9th were given a $0.37 dividend. This is a boost from Avnet's previous quarterly dividend of $0.35. The ex-dividend date was Wednesday, September 9th. This represents a $1.48 dividend on an annualized basis and a dividend yield of 1.9%. Avnet's dividend payout ratio is presently 22.22%.

Insider Activity

In related news, SVP Michael Ryan Mccoy sold 32,052 shares of the company's 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 sale, 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 sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, CEO Philip Gallagher sold 51,900 shares of the stock in a transaction that occurred on 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 sale, the chief executive officer directly owned 168,923 shares of the company's stock, valued at $16,632,158.58. This represents a 23.50% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 2.00% of the company's stock.

Hedge Funds Weigh In On Avnet

A number of hedge funds have recently bought and sold shares of AVT. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in shares of Avnet during the 2nd quarter worth $25,000. Provenance Wealth Advisors LLC bought a new stake in Avnet in the 3rd quarter valued at about $40,000. State of Wyoming bought a new stake in Avnet in the 2nd quarter valued at about $37,000. Elevation Wealth Partners LLC lifted its holdings in Avnet by 38.5% during the second quarter. Elevation Wealth Partners LLC now owns 666 shares of the company's stock valued at $59,000 after purchasing an additional 185 shares during the last quarter. Finally, Reyes Financial Architecture Inc. purchased a new stake in Avnet during the third quarter valued at about $69,000. Institutional investors own 95.78% of the company's stock.

About Avnet

Avnet, Inc is a global technology distributor that helps manufacturers and design engineers source electronic components and develop products. The company supplies semiconductors, embedded processors, memory, connectivity products, sensors, power-management components and other electronic parts used in industrial, automotive, communications, computing, aerospace and defense applications.

In addition to component distribution, Avnet provides engineering and design services, supply-chain management, product customization, logistics, and technical support.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.