Investment firm Boston Partners is selling a fraction of Arrow Electronics’ shares, despite the company’s favorable performance

On June 11, 2021, Boston Partners, a leading investment management firm, announced that it reduced its position in Arrow Electronics, Inc. (NYSE:ARW) by 5.4% during the last quarter of the year previous. This development comes as no surprise to most market analysts who have closely monitored the company’s performance over the past several months.

In this recent move, Boston Partners sold a whopping 33,479 shares of ARW stock, which is approximately 0.95% of Arrow Electronics Inc’s total shares outstanding. As a result of this sale, Boston Partners now owns approximately 585,299 shares per a value of $61,247,000 at the end of the reporting period.

Arrow Electronics Inc is a technology company engaged in providing electronic components and business computing solutions to industrial and commercial users globally. The company operates in two main segments: Global Components Business and Global Enterprise Computing Solutions (Global ECS).

While Arrow Electronics suffered significant revenue losses due to the ongoing COVID-19 pandemic during the second and third quarters of last year as well as some regional distribution restrictions and supply chain challenges compared to this year’s comparisons; reported earnings above expectations starting in the fourth quarter of 2020 to date, culminating in their recent May 4 report, where they reported earnings per share $4.60 cents per share above market consensus estimates.

The tech titan’s net margin for the first quarter came in at 3.84%, while their return on equity was reported at an impressive 26.96%. Revenue during the first quarter came in at $8.74 billion versus analyst expectations of $8.61 billion, this time with performance down just 3.7% year over year. What’s more? Equity Experts Predict Arrow Electronics to Post Massive Earnings, Up to 15.8 EPS, for the Current Fiscal Year!

Bottom line, despite Boston Partners losing a minor percentage of Arrow Electronics’ shares, the data shows promising performance ratios for this tech giant. It’s imperative to expect more significant returns and spikes in company value sooner rather than later.

Institutional investors increase confidence in Arrow Electronics despite market turmoil due to COVID-19

Arrow Electronics Inc., a technology company, has seen an increase in shares being purchased by hedge funds and institutional investors. Lindbrook Capital LLC bought 94 more shares during the fourth quarter and added to its position by 31.9%. Similarly, Brown Brother Harriman & Co. bought a new stake in Arrow Electronics in the first quarter for an estimated $52,000. EverSource Wealth Advisors LLC increased its position by 30.9% and Covestor Ltd further increased its holding by an additional 55.6% over the same period. Finally, Rockefeller Capital Management LP purchased additional shares of Arrow Electronics up to 43.6% during the third quarter.

The company opened Friday at $119.17, with a high of $134.56 and a low of $89.38 in just the past year; results reflect Arrow’s above-average performance against the market turmoil caused by COVID-19 in the technology sector.

Arrow specializes in providing electronic components to industrial/commercial users and enterprise IT solutions, operating in two segments; Global Components Business and Global Enterprise Computing Solutions (Global ECS). The first segment focuses on the marketing/sales of electronic components enabled by value-added support capabilities/services.

In recent news, Chairman Michael J Long sold 884 of his shares at an average cost of $120 per share (for a total sum of $106k). This insider sale has done little to destroy overall market confidence amid strong reports from industry analysts such as Citigroup, Goldman Sachs Group, and StockNews.com.

Although Wells Fargo has labeled Arrow as “underweight,” giving it a bear rating as opposed to the “hold” rating of offshoots Truist Financial, among others; overall confidence remains high due to Arrow’s continued financial stability within volatile markets such as technology, where stagnation is the norm in many industries due to the challenging headwinds presented by COVID-19.

Arrow’s revenue growth and profitability remain strong despite many companies in similar industries experiencing revenue declines. This, coupled with growing institutional investor confidence, paints a hopeful picture for Arrow Electronics Inc’s future, one to watch by all accounts.