Arrow Electronics , Inc. (NYSE:ARW) reported a recent transaction involving a significant sale of shares by an executive of the company. Andrew Charles Kerin, a member of the board of directors, sold a total of 1,468.74 shares of common stock at a price of $130.705, resulting in a transaction value of over $191,971.
This sale, which took place on May 17, 2024, brought Kerin's ownership in the company's common stock down to zero. The transaction was disclosed in a filing with the Securities and Exchange Commission.
On the same day, Kerin also acquired 1,519.64 shares of Arrow Electronics common stock, valued at approximately $199,878, at a price of $131.53 per share. This transaction is associated with the vesting of Restricted Stock Units (RSUs) that were initially granted on May 17, 2023. The RSUs vested and were settled on a one-for-one basis for common stock a year later.
Following the vesting and conversion of the RSUs, the total number of shares owned by Kerin in derivative form is 13,284.68. It is important to note that the reported transactions do not necessarily indicate a change in the executive's view of the company's prospects but are part of the normal course of stock-based compensation for executives.
Investors and market watchers often look to insider transactions as a gauge of confidence in the company's future performance, as well as for indications of potential strategic shifts within the company's leadership. Arrow Electronics, Inc. is a global provider of products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions.
The reported transactions are part of the company's regular disclosure of executive dealings and provide transparency to the market regarding the financial activities of its senior leaders.
InvestingPro Insights
Amidst the recent insider transactions at Arrow Electronics, Inc. (NYSE:ARW), the company's financial health and market performance offer additional context for investors. Arrow Electronics has a market capitalization of approximately $7 billion, reflecting its standing in the Electronic Equipment, Instruments & Components industry where it is a prominent player. The company's P/E ratio stands at 10.26, with an adjusted P/E ratio for the last twelve months as of Q1 2024 at a lower 8.5, suggesting a potentially more attractive valuation for investors.
One of the notable InvestingPro Tips for ARW is that management has been aggressively buying back shares, which can be an indicator of the leadership's confidence in the company's value. Additionally, ARW has a high shareholder yield, which combines dividends and buybacks to measure the total payouts to shareholders. While ARW does not pay a dividend to shareholders, the buyback activity contributes to this yield.
From a performance standpoint, Arrow Electronics has experienced a decline in sales, with revenue growth for the last twelve months as of Q1 2024 decreasing by 14.93%. Analysts have also revised their earnings downwards for the upcoming period and anticipate a sales decline in the current year. However, the valuation implies a strong free cash flow yield, which may be of interest to value-oriented investors.
To gain further insights and access more InvestingPro Tips, such as the company's expected net income drop this year or its low price volatility, interested readers can explore the additional 12 tips listed on InvestingPro. Additionally, for those considering a deeper analysis, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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