Revathi Advaithi Takes Money Off The Table, Sells $4.20M In Flex Stock

Revealing a significant insider sell on June 14, Revathi Advaithi, Chief Executive Officer at Flex FLEX, as per the latest SEC filing.

What Happened: Advaithi's decision to sell 130,604 shares of Flex was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Friday. The total value of the sale is $4,196,241.

The latest market snapshot at Friday morning reveals Flex shares down by 2.06%, trading at $31.36.

All You Need to Know About Flex

Flex Ltd is a contract manufacturing company providing comprehensive electronics design, manufacturing, and product management services to electronics and technology companies. The company's operating segments include Flex Agility Solutions (FAS) and Flex Reliability Solutions (FRS). Flex Agility Solutions segment includes markets such as Communications, Enterprise and Cloud; Lifestyle; and Consumer Devices. Flex Reliability Solutions segment includes markets such as Automotive, Health Solutions, and Industrial.

Flex's Financial Performance

Negative Revenue Trend: Examining Flex's financials over 3 months reveals challenges. As of 31 March, 2024, the company experienced a decline of approximately -20.02% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Insights into Profitability:

• Gross Margin: The company shows a low gross margin of -0.64%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, Flex exhibits below-average bottom-line performance with a current EPS of 0.967896.

Debt Management: Flex's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.7, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: Flex's P/E ratio of 16.17 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: With a P/S ratio of 0.53 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 10.03 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

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Understanding the Significance of Insider Transactions

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Unlocking the Meaning of Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates 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 Flex's Insider Trades.

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