Avnet Target of Unusually High Options Trading (NYSE:AVT)

Avnet (NYSE:AVT) was the recipient of some unusual options trading on Tuesday. Investors bought 1,694 put options on the company. This represents an increase of 1,386% compared to the typical daily volume of 114 put options.

Several equities analysts recently issued reports on AVT shares. TheStreet cut Avnet from a “b” rating to a “c+” rating in a report on Thursday, August 8th. Longbow Research cut Avnet from a “buy” rating to a “neutral” rating in a report on Friday, October 4th. Bank of America downgraded shares of Avnet from a “buy” rating to a “neutral” rating and set a $44.00 target price on the stock. in a research report on Friday, October 25th. Raymond James set a $45.00 target price on shares of Avnet and gave the company a “buy” rating in a research report on Friday, October 25th. Finally, SunTrust Banks lowered shares of Avnet from a “hold” rating to a “sell” rating and reduced their target price for the company from $39.00 to $35.00 in a research note on Friday, October 25th. One equities research analyst has rated the stock with a sell rating, five have given a hold rating and one has assigned a buy rating to the company’s stock. The stock has an average rating of “Hold” and an average target price of $43.50.

AVT opened at $39.50 on Wednesday. The company has a fifty day moving average price of $40.73 and a two-hundred day moving average price of $42.44. Avnet has a 52 week low of $33.55 and a 52 week high of $49.03.

Avnet (NYSE:AVT) last issued its earnings results on Thursday, October 24th. The technology company reported $0.60 EPS for the quarter, missing the consensus estimate of $0.65 by ($0.05). The business had revenue of $4.63 billion for the quarter, compared to the consensus estimate of $4.56 billion. The business’s revenue was down 9.0% on a year-over-year basis. During the same period last year, the firm earned $1.03 EPS.

Avnet announced that its board has approved a share repurchase plan on Monday, August 19th that authorizes the company to repurchase $500.00 million in shares. This repurchase authorization authorizes the technology company to buy up to 11% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s management believes its stock is undervalued.

The business also recently disclosed a quarterly dividend, which will be paid on Friday, December 20th. Investors of record on Wednesday, December 4th will be paid a dividend of $0.21 per share. The ex-dividend date is Tuesday, December 3rd. This represents a $0.84 dividend on an annualized basis and a dividend yield of 2.13%.

In other news, President Philip R. Gallagher sold 24,184 shares of the business’s stock in a transaction on Monday, September 9th. The stock was sold at an average price of $43.94, for a total transaction of $1,062,644.96. Following the completion of the sale, the president now owns 51,878 shares in the company, valued at $2,279,519.32. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director William H. Schumann sold 13,288 shares of the company’s stock in a transaction on Wednesday, September 11th. The shares were sold at an average price of $44.78, for a total value of $595,036.64. The disclosure for this sale can be found here. 1.65% of the stock is currently owned by company insiders.

A number of large investors have recently added to or reduced their stakes in AVT. Millennium Management LLC lifted its holdings in shares of Avnet by 773.7% during the 3rd quarter. Millennium Management LLC now owns 739,702 shares of the technology company’s stock worth $32,905,000 after acquiring an additional 849,502 shares during the period. Man Group plc lifted its stake in Avnet by 2,657.0% in the third quarter. Man Group plc now owns 192,851 shares of the technology company’s stock worth $8,579,000 after acquiring an additional 185,856 shares during the period. Voloridge Investment Management LLC purchased a new position in Avnet during the 3rd quarter valued at $846,000. Public Employees Retirement System of Ohio increased its position in Avnet by 14.7% during the 3rd quarter. Public Employees Retirement System of Ohio now owns 99,075 shares of the technology company’s stock valued at $4,407,000 after purchasing an additional 12,731 shares during the period. Finally, Polaris Capital Management LLC increased its position in Avnet by 2.6% during the 3rd quarter. Polaris Capital Management LLC now owns 1,043,360 shares of the technology company’s stock valued at $46,414,000 after purchasing an additional 26,500 shares during the period. 96.44% of the stock is currently owned by hedge funds and other institutional investors.

About Avnet

Avnet, Inc, together with its subsidiaries, distributes electronic components worldwide. The company operates through two segments, Electronic Components and Premier Farnell. The Electronic Components segment markets and sells semiconductors; electronic components, including interconnect, passive and electromechanical devices; and other integrated components from electronic component manufacturers.

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