Flex Director Trades Company's Stock

Disclosed on May 31, Michael D Capellas, Director at Flex FLEX, executed a substantial insider sell as per the latest SEC filing.

What Happened: Capellas opted to sell 78,872 shares of Flex, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Friday. The transaction's total worth stands at $2,653,064.

During Friday's morning session, Flex shares up by 0.83%, currently priced at $34.06.

Discovering Flex: A Closer Look

Flex Ltd is a contract manufacturing company providing comprehensive electronics design, manufacturing, and product management services to electronics and technology companies. The company's operating segments include Flex Agility Solutions (FAS) and Flex Reliability Solutions (FRS). Flex Agility Solutions segment includes markets such as Communications, Enterprise and Cloud; Lifestyle; and Consumer Devices. Flex Reliability Solutions segment includes markets such as Automotive, Health Solutions, and Industrial.

Financial Insights: Flex

Revenue Challenges: Flex's revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -20.02%. 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.

Profitability Metrics:

• Gross Margin: The company shows a low gross margin of -0.64%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Flex's EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.967896.

Debt Management: Flex's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.7, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Valuation Overview:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 17.06, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.56 is lower than the industry average, implying a discounted valuation for Flex's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry averages at 10.53, Flex could be considered undervalued.

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

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Why Insider Activity Matters in Finance

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

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.

Exploring Key Transaction Codes

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 Flex's Insider Trades.

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