Group President Of Flex Makes $302K Sale

Making a noteworthy insider sell on June 7, Rebecca Sidelinger, Group President at Flex FLEX, is reported in the latest SEC filing.

What Happened: Sidelinger's decision to sell 9,285 shares of Flex was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Friday. The total value of the sale is $302,067.

As of Friday morning, Flex shares are up by 0.22%, currently priced at $32.33.

Delving into Flex's Background

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.

Flex: Delving into Financials

Decline in Revenue: Over the 3 months period, Flex faced challenges, resulting in a decline of approximately -20.02% in revenue growth as of 31 March, 2024. This signifies a reduction in the company's 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: 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 is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.967896.

Debt Management: With a high debt-to-equity ratio of 0.7, Flex faces challenges in effectively managing its debt levels, indicating potential financial strain.

Financial 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 P/S ratio of 0.54 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): The company's EV/EBITDA ratio 10.1 is below the industry average, indicating that it may be relatively undervalued compared to peers.

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

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Why Insider Transactions Are Key in Investment Decisions

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.

Unlocking the Meaning of Transaction Codes

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 Flex's Insider Trades.

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