Arrow Electronics President and CEO Makes $991K Stock Purchase

On August 4, Sean Kerins, President and CEO at Arrow Electronics (NYSE:ARW) executed a significant insider buy, as disclosed in the latest SEC filing.

What Happened: Kerins demonstrated confidence in Arrow Electronics by purchasing 8,630 shares, as reported in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total value of the transaction is $991,693.

The latest market snapshot at Tuesday morning reveals Arrow Electronics shares up by 2.06%, trading at $118.5.

Delving into Arrow Electronics's Background

Arrow Electronics Inc. is a provider of products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions. It has one of the world's broadest portfolios of product offerings available from electronic components and enterprise computing solutions suppliers, coupled with a range of services, solutions, and software, the company helps industrial and commercial customers introduce products, reduce their time to market, and enhance their overall competitiveness. The company has two business segments, the components business and the enterprise computing solutions.

Arrow Electronics's Financial Performance

Positive Revenue Trend: Examining Arrow Electronics's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 9.97% as of 30 June, 2025, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Evaluating Earnings Performance:

• Gross Margin: With a low gross margin of 11.2%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Arrow Electronics's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 3.62.

Debt Management: Arrow Electronics's debt-to-equity ratio is below the industry average. With a ratio of 0.45, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 13.12 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.22, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio of 8.83 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

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Why Pay Attention to Insider Transactions

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Breaking Down the Significance of Transaction Codes

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Arrow Electronics's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.