SAN JOSE, CA – Flex Ltd. (NASDAQ:FLEX), a global leader in the printed circuit boards industry, has recently seen significant stock transactions by Group President Michael P. Hartung. According to the latest SEC filings, Hartung sold a portion of his holdings, totaling over $820,000.
On June 12, 2024, Hartung sold 25,525 ordinary shares of Flex Ltd. at a weighted average price of $32.13, with individual sale prices ranging between $31.79 and $32.70. This sale was conducted primarily to cover tax withholding obligations connected to the vesting of performance-based restricted share units (PSUs). Following this sale, Hartung's ownership in the company was adjusted to 188,844 shares.
In addition to the sale, Hartung also acquired additional shares through the vesting of PSUs and restricted share units (RSUs). On June 11, 2024, he received 50,346 shares as the company certified the achievement of a performance criterion for the three-year period ending on that date. Furthermore, on June 12, Hartung was awarded 28,151 unvested RSUs set to vest in three equal annual installments starting from June 12, 2025. These transactions did not involve any monetary exchange and were related to previously set agreements as part of his compensation package.
After these transactions, Hartung's total reported ownership includes 216,995 shares, with a portion of these being unvested RSUs. These unvested shares are scheduled to vest on various dates, providing Hartung with a contingent right to receive additional unrestricted, fully transferable shares if not previously forfeited.
Investors closely monitor insider transactions like these as they can provide insights into executives' perspectives on the company's performance and future prospects. Flex Ltd. continues to be transparent with its filings, offering stakeholders a clear view of the financial dealings within its executive team.
In other recent news, Flex has made significant strides in its business operations. The global manufacturing partner recently acquired FreeFlow, a specialist in asset disposition and digital circular economy tracking. This strategic move is expected to enhance Flex's product lifecycle services and promote sustainability. The integration of FreeFlow's platform with Flex's existing services will provide customers with opportunities to generate additional revenue and support environmental commitments by extending the life of their products.
In terms of financial performance, Flex reported its Q4 and fiscal year 2024 results, revealing growth in profitability metrics despite a decrease in revenue. The company's Q4 revenue was $6.2 billion, marking a 12% year-over-year decrease, while the full-year revenue was $26.4 billion, a 7% drop. However, the gross profit for the quarter improved to $532 million, and for the year, it reached $2.1 billion. Operating income rose by 3% to $1.3 billion, and earnings per share saw an 11% increase to $2.15.
Flex'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 also reported significant share buybacks in fiscal year 2024, totaling $1.3 billion. These developments are part of Flex's strategic focus on digitization, regionalization, and sustainability, as well as its differentiation in power and compute.
InvestingPro Insights
As Flex Ltd. (NASDAQ:FLEX) navigates the dynamic landscape of the printed circuit boards industry, recent insider transactions by Group President Michael P. Hartung have drawn attention. To provide additional context to these moves, InvestingPro data and tips offer a deeper dive into the company's financial health and market position.
An InvestingPro Tip highlights that management has been actively engaged in share repurchases, indicating a strong belief in the company's intrinsic value. Additionally, Flex Ltd. is recognized for its high shareholder yield, which combines dividend payments and share buybacks to give a sense of the company's ability to return capital to shareholders.
From a financial perspective, Flex Ltd. boasts a market capitalization of $12.85 billion, underscoring its significant presence in the industry. The company's P/E ratio stands at 13.84, suggesting a potentially attractive valuation relative to near-term earnings growth. Moreover, Flex Ltd. is trading near its 52-week high with a price at 93.85% of this peak, reflecting a strong performance in the stock market over the past year.
While the company does not pay dividends, as indicated by another InvestingPro Tip, the substantial return over the last year, with a 65.24% one-year price total return, compensates for this. Investors may find additional insights and tips on Flex Ltd. by exploring the comprehensive list of 14 InvestingPro Tips available at: https://www.investing.com/pro/FLEX. For those seeking to delve further into the company's prospects, using the coupon code PRONEWS24 can secure an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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