Massive Insider Trade At Plexus

A substantial insider sell was reported on May 30, by Todd P Kelsey, CEO at Plexus PLXS, based on the recent 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 Thursday. The total transaction value is $113,400.

Tracking the Friday's morning session, Plexus shares are trading at $110.49, showing a down of 0.0%.

Delving into Plexus's Background

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

Decline in Revenue: Over the 3 months period, Plexus faced challenges, resulting in a decline of approximately -9.71% in revenue growth as of 31 March, 2024. This signifies a reduction in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Analyzing Profitability Metrics:

• 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: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.37.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 30.44 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.77 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 of 14.39 exceeds industry averages, indicating a premium valuation in the market

Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.

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The Impact of Insider Transactions on Investments

It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

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.

Navigating the World of Insider Transaction Codes

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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.