Flex Board Member Trades $517K In Company Stock

It was reported on August 26, that William D Watkins, Board Member at Flex (NASDAQ:FLEX) executed a significant insider sell, according to an SEC filing.

What Happened: Watkins's recent Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday unveiled the sale of 10,000 shares of Flex. The total transaction value is $517,892.

As of Tuesday morning, Flex shares are up by 0.4%, currently priced at $53.19.

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.

Flex: Delving into Financials

Revenue Growth: Flex displayed positive results in 3 months. As of 30 June, 2025, the company achieved a solid revenue growth rate of approximately 4.13%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Insights into Profitability:

• Gross Margin: The company faces challenges with a low gross margin of 8.7%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, Flex exhibits below-average bottom-line performance with a current EPS of 0.51.

Debt Management: Flex's debt-to-equity ratio surpasses industry norms, standing at 0.84. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 23.34 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.79, 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 an EV/EBITDA ratio lower than industry averages at 11.84, Flex could be considered undervalued.

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

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Uncovering the Importance of Insider Activity

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Deciphering Transaction Codes in Insider Filings

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.

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