Healthy Upside Potential: Avnet Inc. (AVT)

Avnet Inc. (NASDAQ: AVT) stock jumped 4.24% on Thursday to $44.00 against a previous-day closing price of $42.21. With 0.64 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.55 million shares. During the session, the Electronics & Computer Distribution company that operates in wider Technology sector, reached to the highest price of $44.31 whereas the lowest price it dropped to was $42.42. The 52-week range on AVT shows that it touched its highest point at $50.19 and its lowest point at $35.45 during that stretch. It currently has a 1-year price target of $47.17. With its current market cap of 4.04 billion, AVT has annualized dividend of $1.16 while the current yield stands at 2.64%. Beta for the stock currently stands at 1.36.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of AVT was up-trending over the past week, with a rise of 3.21%, but this was up by 8.86% over a month. Three-month performance dropped to -3.53% while six-month performance fell -1.90%. The stock lost -3.06% in the past year, while it has gained 5.82% so far this year. A look at the trailing 12-month EPS for AVT yields 9.09 with Next year EPS estimates of 5.68. For the next quarter, that number is 1.65. This implies an EPS growth rate of 259.80% for this year and -25.78% for next year. EPS is expected to grow by 10.40% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 27.60%.

Float and Shares Shorts:

At present, 91.44 million AVT shares are outstanding with a float of 89.83 million shares on hand for trading. On Apr 27, 2023, short shares totaled 2.57 million, which was 2.81% higher than short shares on Mar 30, 2023. In addition to Mr. Philip R. Gallagher as the firm’s CEO, Member of Exec. Board & Director, Mr. Michael Ryan McCoy serves as its Sr. VP, Gen. Counsel, Chief Legal Officer & Member of Exec. Board.

Institutional Ownership:

Through their ownership of 101.20% of AVT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 56.92% of AVT, in contrast to 42.57% held by mutual funds. Shares owned by individuals account for 22.78%. As the largest shareholder in AVT with 10.99% of the stake, The Vanguard Group, Inc. holds 10,043,272 shares worth 10,043,272. A second-largest stockholder of AVT, Pzena Investment Management LLC, holds 9,149,810 shares, controlling over 10.01% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in AVT, holding 7,582,798 shares or 8.30% stake. With a 3.12% stake in AVT, the iShares Core S&P Mid Cap ETF is the largest stakeholder. A total of 2,851,502 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 3.10% of AVT stock, is the second-largest Mutual Fund holder. It holds 2,833,974 shares valued at 116.93 million. Vanguard Small Cap Index Fund holds 2.62% of the stake in AVT, owning 2,390,659 shares worth 98.64 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 31, 2023, AVT reported revenue of $6.37B and operating income of $284.69M. The EBITDA in the recently reported quarter was $315.68M and diluted EPS was $2.51.


Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AVT since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With AVT analysts setting a high price target of $57.00 and a low target of $37.00, the average target price over the next 12 months is $46.71. Based on these targets, AVT could surge 29.55% to reach the target high and fall by -15.91% to reach the target low. Reaching the average price target will result in a growth of 6.16% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.


Dividends & Yield:

In terms of dividends, AVT has a current ratio of $1.16, which is $1.16 over the trailing 12-months, while a dividend of $0.87 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and AVT currently yields $2.57. In the past year, AVT’s dividend yield has been $2.57, but when looking at the stock over the past five years, its yield has been $2.27. Accordingly, AVT has a current buyback yield of $7.88. This was $7.88 for the TTM, and it was $7.0 for the past five years.

Summary of Insider Activity:

Insiders traded AVT stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 18 while that of sell transactions has risen to 14 over the past year. The total number of shares bought during that period was 216,911 while 255,725 shares were sold.

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