Avnet (AVT) Upgraded at Zacks Investment Research

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Zacks Investment Research upgraded shares of Avnet (NYSE:AVT) from a sell rating to a hold rating in a report released on Monday morning.

According to Zacks, “Avnet reported healthy first-quarter results driven by strong performance of Electronics Components and Premier Farnell segments. Notably, supplier lines continue to increase in both the segments. Avnet intends to use its resources to make investments in embedded solutions, IoT and critical digital platforms as well as expand its footprint in newer markets. Strength in its e-commerce revenues makes management optimistic about its aim to hit $1 billion of e-commerce revenue in fiscal 2019. Shares outperformed the industry on a year-to-date basis. However, a significant portion of Avnet’s revenues comes from the sale of semiconductors, which is a cyclical industry, characterized by changes in technology and manufacturing capacity. Moreover, unfavorable currency fluctuations and an uncertain macroeconomic environment remain concerns.”

Several other equities research analysts have also commented on AVT. Wells Fargo & Co assumed coverage on shares of Avnet in a research note on Tuesday, July 17th. They issued a market perform rating and a $47.00 price objective for the company. TheStreet lowered shares of Avnet from a b rating to a c rating in a research note on Wednesday, October 10th. Citigroup increased their price objective on shares of Avnet from $37.00 to $39.00 and gave the company a sell rating in a research note on Thursday, August 9th. Finally, Bank of America upgraded shares of Avnet from a neutral rating to a buy rating and increased their price objective for the company from $44.00 to $55.00 in a research note on Friday, August 10th. One equities research analyst has rated the stock with a sell rating, four have issued a hold rating and three have issued a buy rating to the stock. Avnet presently has a consensus rating of Hold and an average price target of $45.67.

NYSE:AVT opened at $40.07 on Monday. The company has a quick ratio of 1.58, a current ratio of 2.75 and a debt-to-equity ratio of 0.30. The stock has a market capitalization of $4.63 billion, a price-to-earnings ratio of 12.37, a PEG ratio of 1.08 and a beta of 0.99. Avnet has a 52 week low of $37.11 and a 52 week high of $49.40.

Avnet (NYSE:AVT) last posted its quarterly earnings data on Thursday, October 25th. The technology company reported $1.03 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $1.01 by $0.02. The firm had revenue of $5.09 billion during the quarter, compared to analyst estimates of $5.03 billion. Avnet had a negative net margin of 0.72% and a positive return on equity of 8.08%. Equities analysts forecast that Avnet will post 3.52 earnings per share for the current year.

Avnet announced that its board has approved a stock buyback plan on Wednesday, August 29th that permits the company to repurchase $500.00 million in shares. This repurchase authorization permits the technology company to reacquire up to 10.8% of its stock through open market purchases. Stock repurchase plans are generally an indication that the company’s board believes its stock is undervalued.

In other Avnet news, insider Maryann G. Miller sold 15,024 shares of the stock in a transaction dated Friday, September 14th. The shares were sold at an average price of $47.99, for a total value of $721,001.76. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Company insiders own 1.65% of the company’s stock.

Several hedge funds have recently modified their holdings of the company. Foster & Motley Inc. increased its stake in shares of Avnet by 89.1% during the 3rd quarter. Foster & Motley Inc. now owns 9,958 shares of the technology company’s stock worth $446,000 after purchasing an additional 4,692 shares during the last quarter. Speece Thorson Capital Group Inc. increased its stake in shares of Avnet by 9.7% during the 3rd quarter. Speece Thorson Capital Group Inc. now owns 227,550 shares of the technology company’s stock worth $10,187,000 after purchasing an additional 20,113 shares during the last quarter. Robeco Institutional Asset Management B.V. increased its stake in shares of Avnet by 142.5% during the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 156,723 shares of the technology company’s stock worth $7,017,000 after purchasing an additional 92,096 shares during the last quarter. Acadian Asset Management LLC increased its stake in shares of Avnet by 1,885.3% during the 3rd quarter. Acadian Asset Management LLC now owns 15,267 shares of the technology company’s stock worth $683,000 after purchasing an additional 14,498 shares during the last quarter. Finally, W.E. Donoghue & Co. LLC increased its stake in shares of Avnet by 78.2% during the 3rd quarter. W.E. Donoghue & Co. LLC now owns 21,094 shares of the technology company’s stock worth $944,000 after purchasing an additional 9,254 shares during the last quarter. Institutional investors own 96.44% of the company’s stock.

About Avnet

Avnet, Inc, together with its subsidiaries, distributes electronic components worldwide. The company operates through two segments, Electronic Components and Premier Farnell. The Electronic Components segment markets and sells semiconductors; electronic components, including interconnect, passive and electromechanical devices; and other integrated components from electronic component manufacturers.

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