Taking a Fresh Look at Avnet, Inc. (AVT)

Avnet, Inc. (NYSE:AVT) is an interesting player in the Services space, with a focus on Electronics Wholesale. The stock has been active on the tape, currently trading at $46.79, up from yesterday’s close by -0.34%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Does this stock stack up well when compared to its peers in the space? Let’s take a look. Avnet, Inc. (AVT) currently trades with a market capitalization of $5.97B. That value represents a market adjusting for revenues that have been falling by -9.30% on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For AVT, the company currently has $1.20B of cash on the books, which is offset by $2.71B current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $-719.10M over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of 0.75 on a per share basis this quarter. Perhaps, that suggests something about why 96.80% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, Avnet, Inc. recorded a 52-week high of 51.50. It is now trading 4.55 off that level. The stock is trading 47.34 its 50-day moving average by 0.39. The stock carved out a 52-week low down at 37.10.

In recent action, Avnet, Inc. (AVT) has made a move of -3.92% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is outperforming the S&P 500 by 1.06, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 126.59M. That suggests something of the likelihood of a short squeeze in shares of AVT.

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