Arrow Electronics CEO Boosts Stake with $991,693 Purchase

Arrow Electronics CEO Sean Kerins recently acquired 8,630 common shares at $114.91 each, totaling $991,693. The company operates in the technology sector, providing products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions. Arrow Electronics' revenue for the trailing twelve months stands at $28.5 billion, with a 3.4% growth rate over the past three years, but recent revenue growth has decelerated. The company's financial health is characterized by a mix of strengths and challenges, including a modest operating margin and a decline in earnings per share. Despite these figures, there are warning signs, such as a grey area Altman Z-Score and a trend of insider selling. The company's valuation metrics suggest a relatively attractive position with a price-to-earnings ratio of 13.13.

Arrow Electronics' President and CEO, Sean J. Kerins, recently purchased 8,630 shares of the company's common stock, valued at $114.91 each, totaling $991,693. This transaction, reported on August 1, 2025, was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission [1].

Arrow Electronics operates in the technology sector, providing products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions. The company's revenue for the trailing twelve months stands at $28.5 billion, with a 3.4% growth rate over the past three years. However, recent revenue growth has decelerated [3].

The company's financial health is characterized by a mix of strengths and challenges. Arrow Electronics maintains a gross margin of 11.54% and an operating margin of 3.06%, with net margins at 1.4% [3]. The company's balance sheet exhibits a current ratio of 1.43 and a quick ratio of 1.05, indicating a stable liquidity position. The debt-to-equity ratio stands at 0.48, reflecting a moderate level of leverage [3].

However, there are warning signs to consider. The Altman Z-Score of 2.38 is in the grey area, suggesting some financial stress [3]. Additionally, recent insider selling activity, with five transactions over the past three months, may raise concerns [3].

The company's valuation metrics suggest a relatively attractive position. The price-to-earnings (P/E) ratio is 13.13, which is below industry norms, indicating potential undervaluation and presenting an investment opportunity [4]. The price-to-sales (P/S) ratio is 0.22, which is lower than the industry average, suggesting a possible undervaluation based on sales performance [4].

Despite these figures, Arrow Electronics demonstrates a solid financial foundation and competitive positioning. The company's extensive product offerings and solutions enhance its competitiveness in the technology sector [3]. However, investors should remain vigilant of potential risks and market dynamics [3].

References:

[1] https://www.tradingview.com/news/tradingview:bbb9e98a3401b:0-arrow-electronics-ceo-sean-j-kerins-acquires-8-630-shares/
[2] https://www.marketscreener.com/news/earnings-flash-arw-arrow-electronics-inc-posts-q2-adjusted-eps-2-43-per-share-vs-factset-est-ce7c5fddda88f224
[3] https://www.gurufocus.com/news/3022205/arrow-electronics-arw-exceeds-revenue-expectations-in-q2
[4] https://www.benzinga.com/insights/news/25/08/46861263/arrow-electronics-president-and-ceo-makes-991k-stock-purchase