Plexus Recent Insider Activity

A substantial insider sell was reported on August 20, by Todd P Kelsey, President & CEO at Plexus PLXS, based on the recent SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday outlined that Kelsey executed a sale of 3,000 shares of Plexus with a total value of $373,750.

Plexus shares are trading down 0.0% at $122.54 at the time of this writing on Wednesday morning.

Discovering Plexus: A Closer Look

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.

Financial Milestones: Plexus's Journey

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 -5.96%. This indicates a decrease 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.

Interpreting Earnings Metrics:

• Gross Margin: The company shows a low gross margin of 9.83%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Plexus's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 0.92.

Debt Management: With a below-average debt-to-equity ratio of 0.3, Plexus adopts a prudent financial strategy, indicating a balanced approach to debt management.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 30.87, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: With a P/S ratio of 0.87 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): At 14.45, the company's EV/EBITDA ratio outperforms industry norms, reflecting positive market perception. This positioning indicates optimistic expectations for the company's future performance.

Market Capitalization Analysis: Positioned below industry benchmarks, the company's market capitalization faces constraints in size. This could be influenced by factors such as growth expectations or operational capacity.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

Navigating the Impact of Insider Transactions on Investments

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

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

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Transaction Codes To Focus On

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely 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 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.