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Cho Yun Sung, Vice President, Corporate Controller, and Chief Accounting Officer at Arrow Electronics , Inc. (NYSE:ARW), a prominent player in the Electronic Equipment industry with a market capitalization of $5.9 billion, recently sold shares of the company’s common stock. According to InvestingPro analysis, the stock currently trades below its Fair Value, showing potential upside despite recent insider selling. According to a filing with the Securities and Exchange Commission, Sung sold 353 shares on February 24, 2025, at a price of $112.11 each, totaling $39,574. Following this transaction, Sung holds 1,549 shares of Arrow Electronics. The sale was executed directly by Sung and did not involve any equity swaps. While this insider sale occurred, InvestingPro data reveals that management has been actively buying back shares, and the stock maintains relatively low price volatility. Discover 8 more exclusive InvestingPro Tips and comprehensive analysis in our Pro Research Report.
In other recent news, Arrow Electronics reported robust fourth-quarter results for fiscal 2024, with revenues reaching $7.28 billion and non-GAAP earnings per share (EPS) of $2.97, both exceeding market expectations. Despite these strong results, BofA Securities downgraded Arrow Electronics from Neutral to Underperform, citing a lower-than-anticipated forecast for the first quarter of fiscal 2025, with projected revenues and EPS falling short of previous estimates. BofA also significantly reduced its price target for Arrow Electronics to $99, down from $133, due to anticipated challenges in the company’s revenue and margins, particularly in the Enterprise Computing Solutions and Components segments.
Arrow Electronics experienced a 7% year-over-year decline in consolidated sales, although the Enterprise Computing Solutions segment showed a 12% increase, reflecting strength in this area. The company has been focusing on cost reduction and strategic investments in cloud and AI solutions, with a reported cash flow from operations of $326 million in the fourth quarter. Arrow Electronics repurchased $250 million of its stock in 2024 and provided cautious guidance for the first quarter of 2025, with sales expected between $5.98 billion and $6.58 billion and EPS ranging from $1.30 to $1.50.
The company’s management expressed cautious optimism about 2025, citing improving inventory levels and a potential stabilization in the semiconductor market. However, BofA anticipates several weak quarters ahead for Arrow Electronics, with a revised earnings estimate for calendar year 2025 significantly lowered from $13.65 to $10.25. Despite these challenges, Arrow Electronics continues to focus on managing inventory and expanding its supplier and customer base to navigate the uncertain market conditions.
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