Zacks Investment Research lowered shares of Avnet (NYSE:AVT) from a buy rating to a hold rating in a report published on Wednesday.
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.”
Other equities analysts have also recently issued reports about the stock. Citigroup lifted their price target 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. Cross Research raised shares of Avnet from a sell rating to a hold rating in a research note on Friday, October 27th. ValuEngine raised shares of Avnet from a hold rating to a buy rating in a research note on Friday, December 1st. Stifel Nicolaus lifted their price target 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. Finally, TheStreet raised shares of Avnet from a c rating to a b- rating in a research note on Friday, November 10th. Four investment analysts have rated the stock with a sell rating, seven have assigned a hold rating and one has assigned a buy rating to the company. The stock presently has an average rating of Hold and an average target price of $40.29.
Avnet (NYSE:AVT) last released its quarterly earnings results on Thursday, October 26th. The technology company reported $0.76 EPS for the quarter, topping analysts’ consensus estimates 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 analysts’ expectations of $4.34 billion. During the same period in the previous year, the company earned $0.91 EPS. The firm’s revenue for the quarter was up 13.2% compared to the same quarter last year. analysts predict that Avnet will post 3.36 earnings per share for the current year.
The business also recently disclosed a quarterly dividend, which was paid on Tuesday, December 19th. Shareholders of record on Wednesday, December 6th were given a $0.18 dividend. The ex-dividend date of this dividend was Tuesday, December 5th. This represents a $0.72 annualized dividend and a yield of 1.82%. Avnet’s dividend payout ratio (DPR) is 17.96%.
Avnet announced that its board has initiated a stock repurchase plan on Friday, November 10th that authorizes the company to repurchase $200.00 million in shares. This repurchase authorization authorizes the technology company to repurchase shares of its stock through open market purchases. Shares repurchase plans are often an indication that the company’s board of directors believes its shares are undervalued.
In related news, CEO Amelio J. William acquired 3,000 shares of the stock in a transaction on Friday, December 8th. The stock was bought at an average cost of $39.16 per share, with a total value of $117,480.00. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. 1.65% of the stock is owned by insiders.
A number of institutional investors have recently added to or reduced their stakes in AVT. Pacad Investment Ltd. purchased a new stake in Avnet in the 2nd quarter valued at about $113,000. Riverhead Capital Management LLC boosted its position in Avnet by 50.3% in the 2nd quarter. Riverhead Capital Management LLC now owns 4,659 shares of the technology company’s stock valued at $181,000 after buying an additional 1,559 shares during the period. Toronto Dominion Bank boosted its position in Avnet by 233.3% in the 3rd quarter. Toronto Dominion Bank now owns 5,279 shares of the technology company’s stock valued at $207,000 after buying an additional 3,695 shares during the period. M&T Bank Corp purchased a new stake in Avnet in the 2nd quarter valued at about $208,000. Finally, BB&T Securities LLC purchased a new stake in Avnet in the 2nd quarter valued at about $218,000. 95.95% of the stock is owned by institutional investors.
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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