Avnet (AVT) Downgraded to Hold at Zacks Investment Research

Avnet (NYSE:AVT) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Wednesday, December 27th.

According to Zacks, “Electronic components distributor, Avnet has outperformed the industry to which it belongs to in the past six months. Going ahead, Avnet issued an optimistic guidance for the second quarter as well as raised the outlook for fiscal 2018. The divestment of the Technology Solution division has allowed Avnet to focus on high-growth areas such as marketing electronic components and related products in the supply chain. The company 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. Furthermore, acquisitions such as Premier Farnell and Dragon Innovation are likely to bolster Avnet’s portfolio and expand global operations. Nonetheless, intensifying competition from Arrow Electronics Inc. remains a headwind.”

A number of other research analysts also recently commented on the stock. ValuEngine raised shares of Avnet from a “hold” rating to a “buy” rating in a report on Friday, December 1st. TheStreet raised shares of Avnet from a “c” rating to a “b-” rating in a research note on Friday, November 10th. Cross Research raised shares of Avnet from a “sell” rating to a “hold” rating in a research note on Friday, October 27th. Citigroup raised their price objective on shares of Avnet from $31.00 to $34.00 and gave the stock a “sell” rating in a research note on Friday, October 27th. Finally, Stifel Nicolaus raised their price objective on shares of Avnet from $40.00 to $42.00 and gave the stock a “hold” rating in a research note on Thursday, October 26th. Three equities research analysts have rated the stock with a sell rating, seven have issued a hold rating and one has given a buy rating to the company. Avnet presently has a consensus rating of “Hold” and a consensus target price of $39.57.

Avnet (NYSE AVT) opened at $41.75 on Wednesday. The company has a debt-to-equity ratio of 0.29, a current ratio of 2.78 and a quick ratio of 1.63. Avnet has a 1-year low of $35.67 and a 1-year high of $48.20. The company has a market cap of $5,052.35, a PE ratio of 10.41, a P/E/G ratio of 1.37 and a beta of 1.09.

Avnet (NYSE:AVT) last announced its quarterly earnings results on Thursday, October 26th. The technology company reported $0.76 EPS for the quarter, beating the Zacks’ consensus estimate of $0.71 by $0.05. Avnet had a net margin of 2.86% and a return on equity of 8.20%. The firm had revenue of $4.66 billion during the quarter, compared to the consensus estimate of $4.34 billion. During the same quarter last year, the firm earned $0.91 EPS. The firm’s revenue for the quarter was up 13.2% compared to the same quarter last year. research analysts expect that Avnet will post 3.36 earnings per share for the current year.

Avnet announced that its Board of Directors has initiated a stock buyback program on Friday, November 10th that permits the company to repurchase $200.00 million in shares. This repurchase authorization permits the technology company to reacquire shares of its stock through open market purchases. Shares repurchase programs are typically an indication that the company’s board of directors believes its shares are undervalued.

In other news, CEO Amelio J. William acquired 3,000 shares of the firm’s stock in a transaction on Friday, December 8th. The stock was acquired at an average price of $39.16 per share, with a total value of $117,480.00. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. 1.65% of the stock is owned by company insiders.

Several large investors have recently modified their holdings of the company. DnB Asset Management AS increased its position in shares of Avnet by 15.1% during the fourth quarter. DnB Asset Management AS now owns 22,923 shares of the technology company’s stock worth $908,000 after acquiring an additional 3,000 shares during the period. Prudential Financial Inc. increased its position in shares of Avnet by 19.2% during the third quarter. Prudential Financial Inc. now owns 1,377,344 shares of the technology company’s stock worth $54,130,000 after acquiring an additional 222,109 shares during the period. Parametric Portfolio Associates LLC increased its position in shares of Avnet by 6.5% during the third quarter. Parametric Portfolio Associates LLC now owns 413,581 shares of the technology company’s stock worth $16,254,000 after acquiring an additional 25,156 shares during the period. Public Employees Retirement System of Ohio increased its position in shares of Avnet by 127.2% during the third quarter. Public Employees Retirement System of Ohio now owns 89,293 shares of the technology company’s stock worth $3,509,000 after acquiring an additional 50,000 shares during the period. Finally, GSA Capital Partners LLP purchased a new position in shares of Avnet during the third quarter worth approximately $435,000. 95.95% of the stock is currently owned by institutional investors and hedge funds.

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Avnet Company Profile

Avnet, Inc is a distributor of electronic components, enterprise computer, networking and storage products and software, and embedded subsystems. The Company operates through Electronics Marketing (EM) segment. The EM segment markets and sells semiconductors; interconnect, passive and electromechanical devices (IP&E), and embedded products to a customer base serving various end markets.

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