Flex Recent Insider Activity

Making a noteworthy insider sell on June 7, Revathi Advaithi, Chief Executive Officer at Flex FLEX, is reported in the latest SEC filing.

What Happened: After conducting a thorough analysis, Advaithi sold 61,042 shares of Flex. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Friday. The total transaction value is $1,985,879.

As of Friday morning, Flex shares are down by 3.19%, currently priced at $31.23.

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.

Flex: Financial Performance Dissected

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.

Interpreting Earnings Metrics:

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

• Earnings per Share (EPS): Flex's EPS is below the industry average. The company faced challenges with a current EPS of 0.967896. This suggests a potential decline in earnings.

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 P/E ratio of 16.29 is lower than the industry average, implying a discounted valuation for Flex's stock.

• Price to Sales (P/S) Ratio: With a P/S ratio of 0.54 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on 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: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

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Delving Into the Significance of Insider Transactions

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

A Deep Dive into Insider Transaction Codes

Investors prefer focusing on transactions that take place in the open market, indicated in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S indicates a sale. Transaction code C indicates the conversion of an option, and transaction code A indicates 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.