Explore Arrow Electronics's Fair Values from the Community and select yours

Arrow Electronics, Inc. (NYSE:ARW) shareholders (or potential shareholders) will be happy to see that the President, Sean Kerins, recently bought a whopping US$992k worth of stock, at a price of US$115. While that only increased their holding size by 7.6%, it is still a big swing by our standards.

The Last 12 Months Of Insider Transactions At Arrow Electronics

Notably, that recent purchase by Sean Kerins is the biggest insider purchase of Arrow Electronics shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is US$118. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Arrow Electronics share holders is that insiders were buying at near the current price.

In the last twelve months insiders purchased 10.53k shares for US$1.2m. But insiders sold 11.42k shares worth US$1.4m. In total, Arrow Electronics insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.6% of Arrow Electronics shares, worth about US$38m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Arrow Electronics Insiders?

The insider sales have outweighed the insider buying, at Arrow Electronics, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 2 warning signs (1 doesn't sit too well with us!) that you ought to be aware of before buying any shares in Arrow Electronics.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.