Zacks Investment Research cut shares of Avnet (NYSE:AVT) from a buy rating to a hold rating in a report issued on Wednesday morning.
According to Zacks, “Avnet is benefiting from strong performance of its Electronics Components segment and Premier Farnell buyout. 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. Moreover, acquisitions such as Premier Farnell and Dragon Innovation are likely to bolster its portfolio and expand global operations. Shares outperformed the industry on a year-to-date basis. Estimates have been stable lately ahead of the company’s Q3 earnings release. The company has positive record of earnings surprises in recent quarters. 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 research firms have also recently commented on AVT. Bank of America raised Avnet from a neutral rating to a buy rating and raised their target price for the stock from $44.00 to $55.00 in a research note on Friday, August 10th. TheStreet raised Avnet from a c+ rating to a b rating in a research note on Thursday, August 9th. Citigroup raised their target price on Avnet from $37.00 to $39.00 and gave the stock a sell rating in a research note on Thursday, August 9th. Wells Fargo & Co assumed coverage on Avnet in a research note on Tuesday, July 17th. They set a market perform rating and a $47.00 target price for the company. Finally, Pivotal Research reaffirmed a buy rating and set a $50.00 target price on shares of Avnet in a research note on Friday, June 22nd. Two research analysts have rated the stock with a sell rating, five have given a hold rating and three have given a buy rating to the company. The company has a consensus rating of Hold and a consensus price target of $45.14.
Shares of AVT stock opened at $40.47 on Wednesday. Avnet has a 1-year low of $38.12 and a 1-year high of $49.40. The stock has a market capitalization of $4.63 billion, a PE ratio of 12.44, a P/E/G ratio of 1.08 and a beta of 0.99. The company has a quick ratio of 1.58, a current ratio of 2.75 and a debt-to-equity ratio of 0.30.
Avnet (NYSE:AVT) last released its earnings results on Wednesday, August 8th. The technology company reported $0.99 EPS for the quarter, topping the consensus estimate of $0.98 by $0.01. Avnet had a positive return on equity of 8.08% and a negative net margin of 0.72%. The business had revenue of $5.06 billion during the quarter, compared to analysts’ expectations of $4.85 billion. During the same quarter last year, the firm posted $0.84 earnings per share. The firm’s revenue was up 9.8% on a year-over-year basis. As a group, research analysts predict that Avnet will post 3.52 earnings per share for the current year.
The firm also recently announced a quarterly dividend, which was paid on Thursday, September 20th. Investors of record on Monday, September 10th were paid a dividend of $0.20 per share. The ex-dividend date was Friday, September 7th. This represents a $0.80 annualized dividend and a yield of 1.98%. This is a boost from Avnet’s previous quarterly dividend of $0.19. Avnet’s dividend payout ratio (DPR) is currently 24.69%.
Avnet declared that its Board of Directors has initiated a stock repurchase program on Wednesday, August 29th that permits the company to repurchase $500.00 million in outstanding shares. This repurchase authorization permits the technology company to buy up to 10.8% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s board believes its shares are undervalued.
In other Avnet news, insider Maryann G. Miller sold 15,024 shares of the stock in a transaction that occurred on Friday, September 14th. The stock was sold at an average price of $47.99, for a total value of $721,001.76. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 1.65% of the stock is currently owned by corporate insiders.
A number of large investors have recently made changes to their positions in the business. CHICAGO TRUST Co NA bought a new position in Avnet in the third quarter worth approximately $207,000. Fox Run Management L.L.C. bought a new position in Avnet in the third quarter worth approximately $475,000. Royal London Asset Management Ltd. bought a new position in Avnet in the second quarter worth approximately $2,221,000. FMR LLC boosted its holdings in Avnet by 9.6% in the second quarter. FMR LLC now owns 2,897,287 shares of the technology company’s stock worth $124,265,000 after acquiring an additional 254,220 shares in the last quarter. Finally, Jane Street Group LLC bought a new position in Avnet in the second quarter worth approximately $210,000. Institutional investors and hedge funds own 96.44% of the company’s stock.
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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