Board Member At Plexus Sells $417K Of Stock

It was reported on November 13, that Dean A Foate, Board Member at Plexus PLXS executed a significant insider sell, according to an SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, Foate sold 2,500 shares of Plexus. The total transaction value is $417,764.

The latest update on Thursday morning shows Plexus shares down by 0.65%, trading at $154.87.

Get to Know Plexus Better

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.

A Deep Dive into Plexus's Financials

Revenue Growth: Over the 3 months period, Plexus showcased positive performance, achieving a revenue growth rate of 9.35% as of 30 September, 2024. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.

Key Insights into Profitability Metrics:

  • Gross Margin: The company faces challenges with a low gross margin of 10.27%, suggesting potential difficulties in cost control and profitability compared to its peers.

  • Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 1.52, Plexus showcases strong earnings per share.

Debt Management: Plexus's debt-to-equity ratio is below the industry average at 0.21, reflecting a lower dependency on debt financing and a more conservative financial approach.

Exploring Valuation Metrics Landscape:

  • Price to Earnings (P/E) Ratio: Plexus's stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 38.87.

  • Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.1, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

  • EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Plexus's EV/EBITDA ratio of 26.38 exceeds industry averages, indicating a premium valuation in the market

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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

Unmasking the Significance of Insider Transactions

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

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

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Essential Transaction Codes Unveiled

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Plexus's Insider Trades.

Insider Buying Alert: Profit from C-Suite Moves

Benzinga Edge reveals every insider trade in real-time. Don't miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.

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

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: NewsInsider TradesTrading IdeasBZI-IT
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!