Arrow Electronics (ARW) Rating Increased to Buy at Zacks Investment Research

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Zacks Investment Research upgraded shares of Arrow Electronics (NYSE:ARW) from a hold rating to a buy rating in a research report sent to investors on Monday morning. The brokerage currently has $89.00 target price on the technology company’s stock.

According to Zacks, “Arrow Electronics' core strength in providing best-in-class services and easy-to-acquire technologies should drive growth in the long run. Moreover, the company has secured a significant market share through a broad portfolio of products and services, and continued efforts to maximize consumer satisfaction. Additionally, incremental sales from strategic acquisitions and partnerships are expected to boost the top line. Notably, the stock has outperformed the industry in the last one year. However, an uncertain economic environment, high debt burden and competition remain the concerns.”

ARW has been the topic of several other reports. Deutsche Bank cut their price objective on shares of Arrow Electronics from $81.00 to $77.00 and set a hold rating on the stock in a research report on Friday, May 4th. ValuEngine downgraded shares of Arrow Electronics from a buy rating to a hold rating in a research report on Monday, April 2nd. Stifel Nicolaus cut their price objective on shares of Arrow Electronics from $92.00 to $85.00 and set a buy rating on the stock in a research report on Friday, May 4th. Finally, Pivotal Research set a $98.00 price objective on shares of Arrow Electronics and gave the company a buy rating in a research report on Monday, May 28th. One analyst has rated the stock with a sell rating, two have issued a hold rating, three have issued a buy rating and one has assigned a strong buy rating to the company’s stock. The stock currently has a consensus rating of Buy and an average price target of $88.40.

NYSE:ARW opened at $77.89 on Monday. The stock has a market capitalization of $6.91 billion, a PE ratio of 10.30, a price-to-earnings-growth ratio of 0.76 and a beta of 1.17. The company has a current ratio of 1.69, a quick ratio of 1.18 and a debt-to-equity ratio of 0.69. Arrow Electronics has a 1-year low of $72.31 and a 1-year high of $87.26.

Arrow Electronics (NYSE:ARW) last released its earnings results on Thursday, May 3rd. The technology company reported $1.88 earnings per share for the quarter, topping the Zacks’ consensus estimate of $1.82 by $0.06. Arrow Electronics had a net margin of 1.53% and a return on equity of 14.41%. The firm had revenue of $6.88 billion for the quarter, compared to the consensus estimate of $6.66 billion. During the same period in the prior year, the firm earned $1.46 EPS. The company’s revenue was up 19.9% compared to the same quarter last year. analysts forecast that Arrow Electronics will post 8.78 EPS for the current fiscal year.

In related news, SVP Matthew R. Anderson sold 1,785 shares of the stock in a transaction dated Tuesday, May 29th. The shares were sold at an average price of $74.16, for a total transaction of $132,375.60. Following the sale, the senior vice president now directly owns 13,050 shares of the company’s stock, valued at approximately $967,788. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Corporate insiders own 1.30% of the company’s stock.

A number of hedge funds have recently made changes to their positions in the stock. Dynamic Technology Lab Private Ltd purchased a new stake in shares of Arrow Electronics during the 1st quarter valued at about $335,000. Financial Gravity Wealth Inc. purchased a new stake in shares of Arrow Electronics during the 1st quarter valued at about $181,000. Principal Financial Group Inc. boosted its holdings in shares of Arrow Electronics by 10.5% during the 1st quarter. Principal Financial Group Inc. now owns 613,919 shares of the technology company’s stock valued at $47,284,000 after acquiring an additional 58,345 shares during the last quarter. CIBC World Markets Inc. purchased a new stake in shares of Arrow Electronics during the 1st quarter valued at about $483,000. Finally, Her Majesty the Queen in Right of the Province of Alberta as represented by Alberta Investment Management Corp boosted its holdings in shares of Arrow Electronics by 78.7% during the 1st quarter. Her Majesty the Queen in Right of the Province of Alberta as represented by Alberta Investment Management Corp now owns 134,200 shares of the technology company’s stock valued at $10,336,000 after acquiring an additional 59,100 shares during the last quarter. 92.74% of the stock is currently owned by institutional investors.

Arrow Electronics Company Profile

Arrow Electronics, Inc provides products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions worldwide. The company operates in two segments, Global Components and Global Enterprise Computing Solutions. The Global Components segment markets and distributes semiconductor products and related services; passive, electro-mechanical, and interconnect products consisting primarily of capacitors, resistors, potentiometers, power supplies, relays, switches, and connectors; and computing and memory products, as well as other products and services.

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