Plexus Corp (NASDAQ:PLXS) President and CEO Todd P. Kelsey has recently sold a significant number of shares in the company, according to the latest filings. Over two days, Kelsey sold a total of 5,000 shares, with the transactions amounting to over $640,000.
On July 31, Kelsey sold 3,000 shares at an average price of $128.40, netting a total of $385,200. The following day, an additional 2,000 shares were sold at a slightly lower average price of $127.80, totaling $255,600. The weighted average sale prices for these transactions ranged from $128.10 to $129.00 per share.
These sales were conducted under a prearranged trading plan known as Rule 10b5-1, which allows company insiders to establish predetermined trading arrangements for selling stocks at a time when they are not in possession of material non-public information. This plan had been adopted by Kelsey on May 11, 2023.
Following these transactions, Kelsey still retains 91,682 shares of Plexus Corp, indicating a continued investment in the company's future. Plexus Corp, headquartered in Neenah, Wisconsin, specializes in providing electronic manufacturing services and is known for its expertise in the printed circuit boards industry.
Investors often monitor insider buying and selling as it can provide insights into an executive's confidence in the company's prospects. However, it is important to note that such sales do not always indicate a change in company fundamentals and can be motivated by a variety of personal financial considerations.
Plexus Corp's stock performance and future growth are closely watched by investors, with the company's leadership actions under scrutiny for indications of strategic direction and confidence.
In other recent news, Plexus Corp. experienced a significant earnings beat in its third quarter, with revenues of $960.8 million, although this fell short of expectations. The company's gross margin of 9.8% exceeded forecasts due to a favorable product mix and effective execution. Notably, Plexus has set a target for 9-12% top-line growth by the fiscal year 2025, with a non-GAAP operating margin goal of 6% or higher.
Financial services company Stifel raised its price target for Plexus to $114, maintaining a hold rating on the stock. Similarly, Needham increased its price target to $144, reaffirming its buy rating, while Benchmark raised its price target to $120.
In recent developments, Plexus reported $255 million in new program wins in its fiscal second quarter, contributing to a forecasted 9% to 12% revenue compound annual growth rate. The company also generated $65 million in free cash flow during this period.
Furthermore, Plexus has made a commitment to sustainability, with an annual report due for release soon. Despite challenges in some sectors, the company has seen strong performance in the Healthcare/Life Sciences sector and robust demand in the Americas.
InvestingPro Insights
Plexus Corp (NASDAQ:PLXS) has been navigating a complex market landscape, and recent insider trading activity has put the company under the investor's microscope. The company's President and CEO, Todd P. Kelsey's sale of 5,000 shares has sparked discussions regarding Plexus' financial health and future outlook. To provide a clearer picture, let's delve into some key data and insights from InvestingPro.
InvestingPro Data reveals a market capitalization of approximately $3.22 billion, with a Price-to-Earnings (P/E) ratio of 28.97, reflecting investor sentiment about the company's earnings potential. Furthermore, the company's revenue for the last twelve months as of Q3 2024 stands at $3.934 billion, despite a revenue decline of 8.72% in the same period. This highlights potential challenges in revenue growth that Plexus is facing.
However, not all indicators are pointing downwards. Plexus has demonstrated a solid performance in the stock market over various time frames, with a 19.77% return over the last month and a 27.7% return over the last six months. These figures underscore a strong recent uptrend in the company's share price, which might reflect investor confidence in its long-term prospects.
InvestingPro Tips suggest a mixed bag of expert opinions. Analysts have revised their earnings upwards for the upcoming period, indicating a potential upside in Plexus' financial performance. Moreover, they predict the company will be profitable this year, which could be a reassuring sign for investors. On the flip side, Plexus suffers from weak gross profit margins, currently standing at 9.34%, and operates with a moderate level of debt, which could raise concerns about its financial leverage and profitability.
For those interested in a deeper analysis, InvestingPro offers additional tips on Plexus Corp, available at https://www.investing.com/pro/PLXS. These include insights on the company's profitability over the last twelve months, its strong return over the last three months, and a lack of dividend payments to shareholders. With a total of 9 InvestingPro Tips available, investors can gain a comprehensive understanding of Plexus' financial standing and what the future may hold for this electronic manufacturing services provider.
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