Arrow Electronics (NYSE:ARW) Shares Gap Down Following Analyst Downgrade

Arrow Electronics, Inc. (NYSE:ARW) shares gapped down prior to trading on Friday after Truist Financial lowered their price target on the stock from $260.00 to $250.00. The stock had previously closed at $222.29, but opened at $209.60. Truist Financial currently has a buy rating on the stock. Arrow Electronics shares last traded at $202.0850, with a volume of 102,434 shares.

ARW has been the subject of a number of other reports. Wells Fargo & Company boosted their price target on Arrow Electronics from $165.00 to $175.00 and gave the company an “underweight” rating in a research note on Monday, July 20th. Wall Street Zen upgraded shares of Arrow Electronics from a “buy” rating to a “strong-buy” rating in a research note on Saturday, July 25th. Weiss Ratings reissued a “buy (b-)” rating on shares of Arrow Electronics in a report on Tuesday, May 26th. Raymond James Financial restated an “outperform” rating and set a $220.00 target price on shares of Arrow Electronics in a research report on Friday, May 8th. Finally, Zacks Research cut shares of Arrow Electronics from a “strong-buy” rating to a “hold” rating in a report on Monday. Three analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat, Arrow Electronics presently has a consensus rating of “Hold” and an average price target of $219.50.

Insider Activity

In other news, SVP Carine Lamercie Jean-Claude sold 3,000 shares of Arrow Electronics stock in a transaction dated Friday, May 22nd. The stock was sold at an average price of $216.00, for a total transaction of $648,000.00. Following the transaction, the senior vice president directly owned 12,626 shares of the company’s stock, valued at $2,727,216. The trade was a 19.20% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Eric Nowak sold 3,473 shares of the business’s stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $210.99, for a total value of $732,768.27. Following the transaction, the insider owned 48,835 shares of the company’s stock, valued at approximately $10,303,696.65. This trade represents a 6.64% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.80% of the stock is owned by company insiders.

More Arrow Electronics News

Here are the key news stories impacting Arrow Electronics this week:

• Positive Sentiment: Second-quarter results beat expectations: Arrow Electronics reported adjusted earnings of $5.45 per share, well above the $4.45 consensus estimate and up from $2.43 a year ago. Revenue increased 31.8% year over year to $9.99 billion, exceeding analysts’ $9.67 billion forecast. Arrow Electronics Q2 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Above-consensus third-quarter guidance: Management forecast adjusted EPS of $4.83 to $5.03, compared with the $4.50 analyst consensus, and revenue of $9.6 billion to $10.2 billion versus expectations of $9.5 billion. The outlook signals continued demand and operating momentum. Arrow Electronics Earnings Report
• Neutral Sentiment: Leadership change announced: Arrow appointed Deidra C. Merriwether as president and chief operating officer. Investors may look for additional details on her responsibilities and strategic priorities. Arrow Electronics Appoints Deidra C. Merriwether
• Negative Sentiment: Price target was trimmed: Truist Financial lowered its target for ARW from $260 to $250, although it maintained a “buy” rating. The lower target may be weighing on sentiment, despite implying substantial potential upside from recent trading levels. Benzinga Arrow Electronics Price Target Update

Institutional Trading of Arrow Electronics

Several institutional investors and hedge funds have recently modified their holdings of ARW. Bayban purchased a new stake in Arrow Electronics in the 1st quarter worth $26,000. Northwestern Mutual Wealth Management Co. lifted its position in shares of Arrow Electronics by 112.0% in the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 248 shares of the technology company’s stock valued at $27,000 after acquiring an additional 131 shares in the last quarter. Transamerica Financial Advisors LLC purchased a new position in shares of Arrow Electronics in the fourth quarter valued at about $27,000. Advisory Services Network LLC bought a new position in shares of Arrow Electronics in the third quarter worth about $31,000. Finally, Quarry LP bought a new position in shares of Arrow Electronics in the third quarter worth about $33,000. 99.34% of the stock is currently owned by institutional investors.

Arrow Electronics Price Performance

The company has a debt-to-equity ratio of 0.35, a current ratio of 1.24 and a quick ratio of 1.02. The firm has a 50-day moving average of $215.99 and a 200-day moving average of $180.49. The stock has a market cap of $10.22 billion, a PE ratio of 14.30 and a beta of 1.20.

Arrow Electronics (NYSE:ARW) last posted its quarterly earnings results on Thursday, August 6th. The technology company reported $5.45 EPS for the quarter, topping analysts’ consensus estimates of $4.45 by $1.00. Arrow Electronics had a return on equity of 11.40% and a net margin of 2.17%.The company had revenue of $9.99 billion for the quarter, compared to analysts’ expectations of $9.67 billion. During the same period in the previous year, the firm earned $2.43 EPS. The firm’s revenue was up 31.8% compared to the same quarter last year. Arrow Electronics has set its Q3 2026 guidance at 4.830-5.030 EPS. Research analysts predict that Arrow Electronics, Inc. will post 19.15 EPS for the current year.

Arrow Electronics announced that its board has initiated a stock repurchase plan on Wednesday, May 13th that authorizes the company to buyback $1.00 billion in outstanding shares. This buyback authorization authorizes the technology company to buy up to 9.7% of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s board of directors believes its stock is undervalued.

Arrow Electronics Company Profile

Arrow Electronics (NYSE: ARW) is a global provider of products, services and solutions to industrial and commercial users of electronic components and enterprise computing solutions. The company offers a broad portfolio of semiconductors, passives, connectors, electromechanical devices and embedded solutions, serving customers across diverse end markets including automotive, communications, computing, aerospace, defense and healthcare. Through its extensive supplier relationships, Arrow enables design engineers to identify and procure components required for the development of new electronic systems and devices.

In addition to component distribution, Arrow delivers value-added services such as design engineering support, supply chain management, global logistics and technical training.