In a recent transaction, Tan Kwang Hooi, the Group President of Flex Ltd. (NASDAQ:FLEX), a company specializing in printed circuit boards, sold 8,028 ordinary shares at an average price of $31.7848. The total value of the shares sold amounts to approximately $255,168. This sale took place on July 29, 2024, as reported in the latest SEC filings.
The transaction's actual sale prices varied, ranging from $31.50 to $32.25 per share. Following this sale, Tan Kwang Hooi still holds a substantial number of shares in the company, with 175,468 shares remaining in his possession. This total includes various unvested restricted share units (RSUs) that are scheduled to vest between June 2025 and June 2026.
It is noteworthy that the RSUs mentioned in the report represent a contingent right to receive one unrestricted, fully transferable share for each vested RSU, provided they have not been forfeited. These RSUs are part of long-term incentive plans that are common in executive compensation packages, aligning leadership interests with those of shareholders by tying a portion of compensation to the company's performance.
Investors often monitor insider transactions, such as those conducted by Tan Kwang Hooi, for insights into executive sentiment regarding the company's future prospects. As Group President, his transactions are closely watched for indications of his confidence in Flex Ltd.'s trajectory.
Flex Ltd., formerly known as Flextronics International Ltd., is headquartered in Singapore and operates in the manufacturing sector, providing a range of design, engineering, and manufacturing services across various industries.
In other recent news, Flextronics International Ltd. has been the subject of notable developments. The company received an upgrade from a Craig-Hallum analyst, changing the stock's rating from Hold to Buy and raising the price target to $39.00. This revision follows the successful spin-off of Flextronics' Nextracker asset and the company's consistent efforts to deliver value to shareholders through share repurchases.
Flextronics also reported steady Q1 earnings for fiscal year 2025, with net sales of $6.3 billion and a GAAP operating income of $233 million. The company announced that CFO Paul Lundstrom will step down, with Jaime Martinez stepping in as the interim CFO.
In addition, Flextronics has made strategic acquisitions of FreeFlow, a specialist in asset disposition and digital circular economy tracking, and Ojjo, a renewable energy company. Furthermore, JPMorgan (NYSE:JPM) raised its price target for Flextronics to $40, maintaining an Overweight rating.
Finally, Nextracker, a solar tracker and software solutions provider, completed the acquisition of renewable energy company Ojjo for approximately $119 million. These recent developments highlight the company's strategic moves, financial performance, and future expectations as stated by analysts.
InvestingPro Insights
Amid the recent insider transaction by Tan Kwang Hooi, Group President of Flex Ltd. (NASDAQ:FLEX), investors are keen to understand the broader financial context of the company. According to InvestingPro data, Flex Ltd. boasts a market capitalization of $12.63 billion, reflecting its significant size within the Electronic Equipment, Instruments & Components industry, where it is recognized as a prominent player. The company's P/E ratio stands at 14.08, which, when compared to near-term earnings growth, suggests that it is trading at a low multiple, a potential signal of value as indicated by an InvestingPro Tip.
Despite a -7.88% decline in revenue over the last twelve months as of Q1 2025, Flex Ltd. has maintained a gross profit margin of 7.8%. The company's strong free cash flow yield is also highlighted by InvestingPro as a valuation metric that could be of interest to investors. This aligns with the management's strategy, which has been aggressively buying back shares, an action often interpreted as a sign of confidence in the company's financial health and prospects.
Moreover, Flex Ltd. has delivered a high shareholder yield, a metric that combines dividends and share buybacks, indicating the company's commitment to returning value to its shareholders. This is further supported by a high return over the last year, with a price total return of 62.09% as of the previous year's end, showcasing the company's strong market performance.
For investors seeking more comprehensive insights into Flex Ltd.'s financials and performance, there are additional InvestingPro Tips available. Utilize coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription, and gain access to a total of 14 InvestingPro Tips that can further inform investment decisions.
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