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 report released 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.”

AVT has been the subject of a number of other research reports. ValuEngine raised shares of Avnet from a “hold” rating to a “buy” rating in a report on Friday, December 1st. TheStreet lowered shares of Avnet from a “b” rating to a “c” rating in a report on Thursday, October 26th. Cross Research raised shares of Avnet from a “sell” rating to a “hold” rating in a report on Friday, October 27th. Citigroup lifted their target price on shares of Avnet from $31.00 to $34.00 and gave the stock a “sell” rating in a report on Friday, October 27th. Finally, Stifel Nicolaus lifted their target price on shares of Avnet from $40.00 to $42.00 and gave the stock a “hold” rating in a report on Thursday, October 26th. Three research analysts have rated the stock with a sell rating, seven have given a hold rating and one has given a buy rating to the company’s stock. The company currently has an average rating of “Hold” and a consensus price target of $39.57.

Shares of Avnet (NYSE AVT) opened at $41.78 on Wednesday. The company has a quick ratio of 1.63, a current ratio of 2.78 and a debt-to-equity ratio of 0.29. The firm has a market cap of $5,070.00, a P/E ratio of 20.89, a P/E/G ratio of 1.37 and a beta of 1.09. Avnet has a fifty-two week low of $35.67 and a fifty-two week high of $48.20.

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

Avnet declared that its Board of Directors has authorized a share repurchase program on Friday, November 10th that permits the company to buyback $200.00 million in outstanding shares. This buyback authorization permits the technology company to repurchase shares of its stock through open market purchases. Shares buyback programs are usually an indication that the company’s leadership believes its stock is undervalued.

In other news, CEO Amelio J. William purchased 3,000 shares of Avnet stock in a transaction dated Friday, December 8th. The shares were bought at an average cost of $39.16 per share, with a total value of $117,480.00. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Company insiders own 1.65% of the company’s stock.

Several hedge funds and other institutional investors have recently made changes to their positions in AVT. Pacad Investment Ltd. bought a new position in shares of Avnet during the second quarter worth $113,000. Riverhead Capital Management LLC boosted its position in shares of Avnet by 50.3% during the second quarter. Riverhead Capital Management LLC now owns 4,659 shares of the technology company’s stock worth $181,000 after purchasing an additional 1,559 shares in the last quarter. Toronto Dominion Bank boosted its position in shares of Avnet by 233.3% during the third quarter. Toronto Dominion Bank now owns 5,279 shares of the technology company’s stock worth $207,000 after purchasing an additional 3,695 shares in the last quarter. M&T Bank Corp bought a new position in shares of Avnet during the second quarter worth $208,000. Finally, BB&T Securities LLC bought a new position in shares of Avnet during the second quarter worth $218,000. 95.95% of the stock is currently owned by institutional investors.

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About Avnet

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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