Insider Decision: Dean A Foate Offloads $1.64M Worth Of Plexus Stock

Revealing a significant insider sell on November 26, Dean A Foate, Director at Plexus PLXS, as per the latest SEC filing.

What Happened: Foate's recent move involves selling 10,000 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 $1,638,384.

Monitoring the market, Plexus's shares down by 1.12% at $162.7 during Wednesday's morning.

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: A Financial Overview

Positive Revenue Trend: Examining Plexus's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 2.6% as of 30 September, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Exploring Profitability:

• 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): Plexus's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 1.52.

Debt Management: Plexus's debt-to-equity ratio is below the industry average. With a ratio of 0.21, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 41.03 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.16, 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, surpassing industry averages at 18.59, positions it with an above-average valuation in the market.

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

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Uncovering the Importance of Insider Activity

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

The Insider's Guide to Important Transaction Codes

Examining transactions, investors often concentrate on those unfolding 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 Plexus's Insider Trades.

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