Arrow Electronics (NYSE:ARW) has been downgraded from a “buy” to a “hold” rating by analysts at Wall Street Zen, according to a research report released on October 28, 2023. This latest assessment reflects a cautious outlook among equity analysts, as several firms have recently adjusted their ratings for the company.
In addition to Wall Street Zen’s downgrade, Weiss Ratings reaffirmed a “hold (c)” rating on Arrow Electronics shares on October 25, 2023. Meanwhile, Wells Fargo & Company reduced its price target from $98.00 to $94.00 while assigning an “underweight” rating. In contrast, Zacks Research has upgraded the stock from a “hold” to a “strong-buy” rating as of October 26, 2023. Currently, Arrow Electronics has received a mix of ratings: one analyst has assigned a strong buy, one a hold, and two analysts have issued sell ratings. The average rating stands at “hold” with a consensus target price of $102.00, as reported by MarketBeat.
Recent Earnings Performance
Arrow Electronics released its quarterly earnings data on October 30, 2023. The company reported earnings per share (EPS) of $2.41, exceeding analysts’ expectations of $2.28 by $0.13. The firm generated revenue of $7.71 billion for the quarter, surpassing forecasts of $7.67 billion. This performance marks a 13.0% increase in revenue compared to the same quarter last year, when the company posted an EPS of $2.38. Arrow Electronics has provided guidance for the fourth quarter of 2025, projecting an EPS range of $3.440 to $3.640. Analysts anticipate Arrow will achieve an EPS of $10.57 for the current fiscal year.
Institutional Investment Trends
The recent fluctuation in Arrow Electronics’ stock ratings coincides with increased activity from hedge funds and institutional investors. Several firms have adjusted their holdings in the company. Root Financial Partners LLC acquired a new position in Arrow Electronics valued at approximately $26,000 in the third quarter. Farther Finance Advisors LLC raised its stake by 84.2% in the second quarter, now owning 221 shares worth around $28,000 after acquiring an additional 101 shares. Operose Advisors LLC also purchased a new stake valued at $31,000 during the first quarter.
Additionally, True Wealth Design LLC increased its position in Arrow Electronics by an astounding 660.0% in the second quarter, owning 266 shares worth $34,000 following a purchase of an additional 231 shares. Hantz Financial Services Inc. similarly expanded its holdings by 1,547.1% in the same period, owning 280 shares valued at $36,000. Institutional investors currently hold 99.34% of the company’s stock, reflecting strong confidence in Arrow’s long-term prospects.
Arrow Electronics, headquartered in the United States, provides a range of products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions across the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates in two primary segments: Global Components and Global Enterprise Computing Solutions.
