Avnet Given Neutral Rating at Zacks (AVT)
Avnet (NYSE:AVT)‘s stock had its “neutral” rating reiterated by Zacks in a note issued to investors on Thursday. They currently have a $47.00 target price on the stock. Zacks‘s target price would suggest a potential upside of 5.29% from the company’s current price.
Zacks’ analyst wrote, “Avnet posted better-than-expected fourth-quarter results. The guidance, however, was less than encouraging due to tepid IT spending environment. Avnet’s leading position in electronics distribution, continuous cost cutting initiatives and acquisition synergies are encouraging. A significant portion of the company’s revenues comes from the sale of semiconductors, which is a cyclical industry characterized by changes in technology and manufacturing capacity and is subject to significant market upturns and downturns. Moreover, the company faces stiff competition in both domestic and foreign operations, especially from archrival Arrow Electronics. Thus, we reiterate our Neutral recommendation on Avnet.”
Shares of Avnet (NYSE:AVT) traded up 0.11% during mid-day trading on Thursday, hitting $44.5299. The stock had a trading volume of 312,933 shares. Avnet has a 1-year low of $38.23 and a 1-year high of $48.18. The stock’s 50-day moving average is $43.51 and its 200-day moving average is $43.80. The company has a market cap of $6.157 billion and a P/E ratio of 11.43. Avnet also was the target of a significant growth in short interest in August. As of August 15th, there was short interest totalling 1,919,524 shares, a growth of 53.1% from the July 31st total of 1,253,557 shares. Currently, 1.4% of the shares of the stock are short sold. Based on an average daily volume of 1,177,213 shares, the short-interest ratio is currently 1.6 days.
Avnet (NYSE:AVT) last issued its earnings data on Wednesday, August 6th. The company reported $1.14 EPS for the quarter, beating the Thomson Reuters consensus estimate of $1.10 by $0.04. The company had revenue of $7.05 billion for the quarter, compared to the consensus estimate of $6.94 billion. During the same quarter in the prior year, the company posted $0.98 earnings per share. The company’s quarterly revenue was up 6.9% on a year-over-year basis. On average, analysts predict that Avnet will post $4.64 earnings per share for the current fiscal year.
The company also recently declared a quarterly dividend, which is scheduled for Friday, September 19th. Shareholders of record on Monday, September 8th will be given a dividend of $0.16 per share. This represents a $0.64 dividend on an annualized basis and a yield of 1.43%. The ex-dividend date of this dividend is Thursday, September 4th. This is a positive change from Avnet’s previous quarterly dividend of $0.15.
AVT has been the subject of a number of other recent research reports. Analysts at Deutsche Bank reiterated a “hold” rating on shares of Avnet in a research note on Thursday, August 7th. They now have a $47.00 price target on the stock, up previously from $45.00. Analysts at Brean Capital cut their price target on shares of Avnet from $50.00 to $47.00 in a research note on Thursday, August 7th. They now have a “buy” rating on the stock. Two analysts have rated the stock with a hold rating and four have issued a buy rating to the stock. The company has a consensus rating of “Buy” and an average target price of $48.00.
Avnet, Inc, together with its subsidiaries, is a distributor of electronic components, enterprise computer and storage products, information technology (NYSE:AVT) services and embedded subsystems.
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