Plexus Chief Strategy Officer Trades $1.67M In Company Stock

It was reported on August 1, that Steven J Frisch, Chief Strategy Officer at Plexus PLXS executed a significant insider sell, according to an SEC filing.

What Happened: After conducting a thorough analysis, Frisch sold 13,190 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 $1,672,150.

In the Friday's morning session, Plexus's shares are currently trading at $119.75, experiencing a down of 3.84%.

About Plexus

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.

Key Indicators: Plexus's Financial Health

Revenue Growth: Plexus's revenue growth over a period of 3 months has faced challenges. As of 30 June, 2024, the company experienced a revenue decline of approximately -0.64%. This indicates a decrease in the company's top-line earnings. When compared to others in the Information Technology sector, the company excelled with a growth rate higher than the average among peers.

Holistic Profitability Examination:

• Gross Margin: The company faces challenges with a low gross margin of 9.83%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Plexus's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 0.92.

Debt Management: Plexus's debt-to-equity ratio is below the industry average. With a ratio of 0.3, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Market Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 31.36 is lower than the industry average, implying a discounted valuation for Plexus's stock.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.88 is lower than the industry average, implying a discounted valuation for Plexus's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Plexus's EV/EBITDA ratio stands at 21.74, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

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Exploring the Significance of Insider Trading

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

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

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Breaking Down the Significance of 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.