Arrow Electronics Shares Surpass Analyst Price Targets, Prompting Investor Assessment
Recently, shares of Arrow Electronics, Inc. (Symbol: ARW) have moved above the average 12-month analyst target price of $112.50, trading at $112.97 per share. When a stock meets an analyst’s target, the analyst typically has two options: downgrade the valuation or adjust the target price upwards. Their decision may also hinge on business developments driving the stock price higher. If the company shows positive trends, it could justify a raised target price.
Within the Zacks coverage universe, there are four distinct analyst targets contributing to Arrow Electronics’ average. While the consensus stands at $112.50, it includes varied predictions. One analyst has a lower target of $98.00, while another is more optimistic, setting a target as high as $135.00. The standard deviation among these targets is $17.597.
The primary purpose of analyzing the average ARW target is to leverage the “wisdom of crowds.” This approach combines the insights from multiple analysts, rather than relying solely on one expert’s perspective. With ARW exceeding the $112.50 target, investors are prompted to reassess the company. They must consider whether this price is merely a stepping stone to higher valuations or if the current valuation has become too stretched, suggesting it might be wise to take some profits off the table.
| Recent ARW Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Month Ago | 3 Month Ago |
| Strong buy ratings: | 0 | 0 | 0 | 0 |
| Buy ratings: | 1 | 1 | 1 | 1 |
| Hold ratings: | 2 | 2 | 3 | 3 |
| Sell ratings: | 0 | 0 | 0 | 0 |
| Strong sell ratings: | 1 | 1 | 1 | 1 |
| Average rating: | 3.25 | 3.25 | 3.2 | 3.2 |
The average rating, presented in the last row, ranges from 1 (Strong Buy) to 5 (Strong Sell). This analysis utilized data provided by Zacks Investment Research via Quandl.com.
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The views and opinions expressed herein belong solely to the author and do not reflect those of Nasdaq, Inc.
