In a recent transaction, Philip R. Gallagher, the Chief Executive Officer of Avnet Inc . (NYSE:NASDAQ:AVT), sold shares of the company's common stock for a total value exceeding $1 million. The sale, which took place on May 10, 2024, involved 19,532 shares at a weighted average price of $51.63, ranging from $51.51 to $51.88 per share. The transaction resulted in a total sale amount of $1,008,437.
On the same day, Gallagher also acquired 19,532 shares of Avnet common stock through the exercise of options at a price of $40.88 per share, amounting to a total transaction value of $798,468. It is important to note that this acquisition was not a purchase in the open market but rather an option exercise, which is a common practice for company executives to convert their options into shares.
After these transactions, Gallagher's direct holdings in Avnet decreased, as reflected in the post-transaction amount. However, it should be noted that the reported shares owned following the sale do not include additional shares underlying Restricted Stock Units (RSUs) and Performance Stock Units (PSUs) that have been allocated or earned but are not yet vested or delivered, as indicated in the footnotes of the filing.
The transactions were disclosed in a Form 4 filing with the Securities and Exchange Commission, which provides transparency into the trading activities of the company's insiders. Avnet investors and the market often scrutinize such filings to gain insight into executives' perspectives on the company's stock value.
Avnet, headquartered in Phoenix, Arizona, is a global distributor of electronic components and embedded solutions. The company's stock trades on the New York Stock Exchange under the ticker symbol AVT.
InvestingPro Insights
Following the recent insider transactions by Avnet Inc.'s CEO, Philip R. Gallagher, InvestingPro data and tips provide additional context for investors considering the company's financial health and market position. Avnet, with a market capitalization of $4.75 billion, trades at a price-to-earnings (P/E) ratio of 8.36, reflecting a valuation that may appeal to value-oriented investors. The company's revenue for the last twelve months as of Q3 2024 stands at $24.75 billion, although it has experienced a decline of 6.09% during this period.
One of the InvestingPro Tips highlights Avnet's track record of raising its dividend for 11 consecutive years, which may be of particular interest to income-focused investors. The company's dividend yield as of the latest data is 2.4%, with a growth of 6.9% in the last twelve months as of Q3 2024. This consistent return to shareholders underscores the company’s commitment to delivering value, even during challenging market conditions.
Additionally, Avnet's stock is noted for typically exhibiting low price volatility, which could be a reassuring factor for risk-averse investors. This stability, combined with a strong free cash flow yield implied by its valuation, suggests that Avnet could be a solid addition to portfolios seeking steady performance.
For investors seeking a more comprehensive analysis, there are 15 more InvestingPro Tips available for Avnet at https://www.investing.com/pro/AVT. To deepen your investment research on Avnet, consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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