Flex Ltd (NASDAQ:FLEX) has reported a significant transaction by one of its top executives in a recent filing. David Scott Offer, the company's Executive Vice President and General Counsel, has sold a total of 11,354 ordinary shares at an average price of $32.53 per share, totaling over $369,000.
The transaction occurred on June 4, 2024, and was disclosed in a Form 4 filing with the Securities and Exchange Commission on June 6, 2024. According to the filing, the shares were sold to cover tax withholding obligations related to the vesting of restricted share units (RSUs).
Investors might note that the actual sale prices ranged from $32.32 to $33.03, with the weighted average sale price coming in at $32.5297 per share. The filing included a footnote indicating that Offer is willing to provide full information regarding the number of shares sold at each price upon request.
Following the transaction, Offer continues to have a significant stake in the company. The remaining holdings include both vested and unvested RSUs, with a total of 134,338 shares owned directly after the sale. Additionally, Offer holds an indirect ownership of 87,094 shares through a trust.
Flex Ltd., with its headquarters in Singapore, operates in the printed circuit boards industry and is known for its manufacturing services. As with all transactions of this nature, they provide insights into the actions of company insiders, potentially reflecting their views on the company's current valuation and future prospects.
In other recent news, Flex has made significant strides in its operations, despite facing challenges in revenue generation. The company recently announced the acquisition of FreeFlow, a specialist in asset disposition and digital circular economy tracking. This acquisition is set to bolster Flex's product lifecycle services and promote sustainability by enabling the sale of surplus and returned inventory through FreeFlow's B2B digital marketplace.
Flex's Q4 and fiscal year 2024 results revealed a resilient growth despite a dip in revenue. The company's Q4 revenue was $6.2 billion, a 12% year-over-year decrease, while the full-year revenue was $26.4 billion, marking a 7% drop. However, despite the revenue decline, profitability metrics such as gross profit, operating income, and earnings per share (EPS) showed an increase. The gross profit for the quarter improved to $532 million, and for the year, it reached $2.1 billion.
These recent developments come in the wake of Flex's strategic focus on digitization, regionalization, and sustainability. The company's outlook for fiscal 2025 includes a prediction of flat to 3% decline in revenue, with adjusted operating margins between 5.2% and 5.4%, and an adjusted EPS between $2.30 and $2.50. The company's CEO, Revathi Advaithi, discussed the Flex Forward strategy, aiming for mid-single-digit revenue growth and 20% EPS growth.
InvestingPro Insights
Amidst the recent insider trading activity at Flex Ltd (NASDAQ:FLEX), investors looking deeper into the company's performance find a mixed landscape of metrics and analyst sentiments. With a market capitalization of $12.96 billion and a trailing P/E ratio of 13.94, Flex appears to be trading at a low multiple relative to near-term earnings growth, which could signal a potential undervaluation in the eyes of value investors. The company's PEG ratio, last recorded at 0.63, further underscores this point, suggesting that the stock may be priced attractively relative to its earnings growth rate.
Despite a dip in revenue growth by -7.32% over the last twelve months as of Q4 2024, Flex has managed to maintain a gross profit margin of 7.65%. This indicates some level of resilience in its profitability, even though it suffers from weak gross profit margins as per one of the InvestingPro Tips. Moreover, the company has been recognized as a prominent player in the Electronic Equipment, Instruments & Components industry, which may provide it with a competitive edge.
From an investment perspective, Flex has delivered a high return over the last year, with a 67.04% price total return. Additionally, the stock is trading near its 52-week high, at 94.55% of that peak, reflecting a large price uptick over the last six months. This performance is consistent with another InvestingPro Tip which highlights the company's high return over the last decade and strong return over the last five years.
For those considering an investment in Flex Ltd, it's worth noting that while the company does not pay a dividend, it has been aggressively buying back shares and boasts a high shareholder yield. These factors, combined with the company's profitability over the last twelve months and analysts' predictions of continued profitability this year, may present a compelling case for potential investors.
For a deeper dive into Flex Ltd's financials and to uncover additional insights, visit InvestingPro. There, you'll find a total of 14 additional InvestingPro Tips that could help inform your investment decisions. And don't forget, you can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing even more value to your investment research.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.