Sell Alert: Todd P Kelsey Cashes Out $103K In Plexus Stock

Making a noteworthy insider sell on May 6, Todd P Kelsey, CEO at Plexus PLXS, is reported in the latest SEC filing.

What Happened: After conducting a thorough analysis, Kelsey sold 1,000 shares of Plexus. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The total transaction value is $103,500.

As of Tuesday morning, Plexus shares are down by 0.0%, currently priced at $105.99.

Get to Know Plexus Better

Plexus Corp is a U.S based Electronic Manufacturing Services company that provides a range of services, from conceptualization and design to fulfilling orders and providing sustaining solutions, such as replenishment and refurbishment. The company's segments comprise AMER, APAC,ge and EMEA.

Unraveling the Financial Story of Plexus

Negative Revenue Trend: Examining Plexus's financials over 3 months reveals challenges. As of 31 March, 2024, the company experienced a decline of approximately -9.71% in revenue growth, reflecting a decrease in top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Evaluating Earnings Performance:

• Gross Margin: The company shows a low gross margin of 9.11%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, Plexus exhibits below-average bottom-line performance with a current EPS of 0.59.

Debt Management: Plexus's debt-to-equity ratio is below the industry average at 0.37, reflecting a lower dependency on debt financing and a more conservative financial approach.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: The current Price to Earnings ratio of 29.2 is higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.74 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Plexus's EV/EBITDA ratio stands at 13.84, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Navigating the Impact of Insider Transactions on Investments

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Important Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies 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 Plexus's Insider Trades.

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