Chief Financial Officer Of Flex Makes $446K Sale

Paul Lundstrom, Chief Financial Officer at Flex FLEX, disclosed an insider sell on June 7, according to a recent SEC filing.

What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Friday outlined that Lundstrom executed a sale of 13,725 shares of Flex with a total value of $446,515.

The latest update on Friday morning shows Flex shares up by 0.22%, trading at $32.33.

All You Need to Know About Flex

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.

Understanding the Numbers: Flex's Finances

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. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Key Profitability Indicators:

• Gross Margin: With a low gross margin of -0.64%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry 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.

Analyzing Market Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 16.29 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.54, 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): With a below-average EV/EBITDA ratio of 10.1, Flex presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

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

Uncovering the Importance of Insider Activity

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to 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.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

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

The Insider's Guide to Important Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated 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.