Arrow Electronics (ARW) Cut to Sell at Zacks Investment Research

Zacks Investment Research cut shares of Arrow Electronics (NYSE:ARW) from a hold rating to a sell rating in a research note released on Thursday morning, Zacks.com reports.

According to Zacks, “Arrow derives majority of its revenues from outside the United States, thus making it vulnerable to lower profitability due to currency volatility. Moreover, growing competition from Avnet and Ingram Micro makes us anxious. Further, the company’s highly leveraged balance sheet is a persistent concern. Also, Arrow is significantly dependent on sales of semiconductors for revenues. However, the U.S.-China trade war has been an overhang on chip stocks. This makes us concerned about the near-term prospects of the company. Nonetheless, Arrow’s core strength in providing best-in-class services and easy-to-acquire technologies is likely to drive growth in the long run. Estimates have been stable lately ahead of the company’s first-quarter earnings release. It has positive record of earnings surprises in the recent quarters.”

ARW has been the topic of a number of other research reports. Stifel Nicolaus lowered Arrow Electronics from a buy rating to a hold rating and set a $75.33 price objective on the stock. in a report on Friday, February 1st. SunTrust Banks increased their price objective on Arrow Electronics to $84.00 and gave the company a hold rating in a report on Friday, February 8th. One analyst has rated the stock with a sell rating, five have assigned a hold rating and two have given a buy rating to the stock. Arrow Electronics presently has a consensus rating of Hold and a consensus target price of $83.33.

ARW opened at $84.96 on Thursday. Arrow Electronics has a fifty-two week low of $62.69 and a fifty-two week high of $85.50. The company has a debt-to-equity ratio of 0.60, a current ratio of 1.55 and a quick ratio of 1.11. The stock has a market cap of $7.24 billion, a PE ratio of 9.62, a PEG ratio of 1.35 and a beta of 1.13.

Arrow Electronics (NYSE:ARW) last posted its quarterly earnings results on Thursday, February 7th. The technology company reported $2.57 earnings per share for the quarter, topping the Zacks’ consensus estimate of $2.56 by $0.01. Arrow Electronics had a return on equity of 14.88% and a net margin of 2.41%. The company had revenue of $7.92 billion during the quarter, compared to the consensus estimate of $7.94 billion. During the same period last year, the business earned $2.49 EPS. The business’s quarterly revenue was up 5.0% on a year-over-year basis. On average, research analysts forecast that Arrow Electronics will post 9.07 EPS for the current fiscal year.

In other news, CEO Michael J. Long sold 25,835 shares of the stock in a transaction dated Monday, February 25th. The stock was sold at an average price of $82.19, for a total transaction of $2,123,378.65. Following the transaction, the chief executive officer now owns 381,028 shares of the company’s stock, valued at approximately $31,316,691.32. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CEO Michael J. Long sold 53,984 shares of the stock in a transaction dated Tuesday, February 19th. The shares were sold at an average price of $80.70, for a total value of $4,356,508.80. Following the transaction, the chief executive officer now directly owns 366,253 shares in the company, valued at approximately $29,556,617.10. The disclosure for this sale can be found here. In the last three months, insiders have sold 102,351 shares of company stock worth $8,322,837. 1.40% of the stock is currently owned by insiders.

Several hedge funds and other institutional investors have recently modified their holdings of the company. Strs Ohio grew its holdings in Arrow Electronics by 6.1% in the 1st quarter. Strs Ohio now owns 7,497 shares of the technology company’s stock valued at $577,000 after buying an additional 429 shares during the last quarter. Oakbrook Investments LLC acquired a new stake in Arrow Electronics in the 1st quarter valued at approximately $231,000. Meeder Asset Management Inc. grew its holdings in Arrow Electronics by 14.9% in the 1st quarter. Meeder Asset Management Inc. now owns 8,720 shares of the technology company’s stock valued at $671,000 after buying an additional 1,128 shares during the last quarter. First Citizens Bank & Trust Co. grew its holdings in Arrow Electronics by 44.8% in the 1st quarter. First Citizens Bank & Trust Co. now owns 6,914 shares of the technology company’s stock valued at $533,000 after buying an additional 2,138 shares during the last quarter. Finally, DNB Asset Management AS grew its holdings in Arrow Electronics by 11.9% in the 1st quarter. DNB Asset Management AS now owns 746,215 shares of the technology company’s stock valued at $57,503,000 after buying an additional 79,166 shares during the last quarter. 94.54% of the stock is currently owned by institutional investors and hedge funds.

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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