Steven J Frisch Implements A Sell Strategy: Offloads $749K In Plexus Stock

A substantial insider sell was reported on August 20, by Steven J Frisch, Chief Strategy Officer at Plexus PLXS, based on the recent SEC filing.

What Happened: Frisch's recent move involves selling 6,048 shares of Plexus. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value is $749,896.

Tracking the Wednesday's morning session, Plexus shares are trading at $125.39, showing a up of 2.33%.

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.

Plexus's Economic Impact: An Analysis

Revenue Challenges: Plexus's revenue growth over 3 months faced difficulties. As of 30 June, 2024, the company experienced a decline of approximately -5.96%. This indicates a decrease in top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Key Insights into Profitability 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 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 at 0.3, reflecting a lower dependency on debt financing and a more conservative financial approach.

Valuation Overview:

• 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 lower-than-average P/S ratio of 0.87, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Plexus's EV/EBITDA ratio stands at 14.45, 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

Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

Understanding Crucial Transaction Codes

When it comes to transactions, investors tend to focus on those in the open market, detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S indicates 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.