Plexus Corp (NASDAQ:PLXS) President and CEO Todd P. Kelsey sold 2,000 shares of company stock on July 1, according to a recent SEC filing. The shares were sold at an average price ranging from $102.02 to $102.89, with the total transaction amounting to over $205,000.
The transaction was conducted under a Rule 10b5-1 trading plan, which was previously adopted on May 11, 2023. Such plans allow company insiders to set up a predetermined schedule for selling stocks at a time when they are not in possession of material non-public information, providing a defense against claims of insider trading.
Following the sale, Kelsey still owns a substantial number of Plexus shares, with the SEC filing indicating a remaining total of 98,338 shares in his possession. The sale represents a minor fraction of his holdings, suggesting a routine financial move rather than a loss of confidence in the company's prospects.
Plexus Corp, headquartered in Neenah, Wisconsin, specializes in the manufacture of printed circuit boards and is a key player in the electronics manufacturing services industry. The company's stock performance and insider transactions are closely watched by investors, as they can provide insights into the company's financial health and leadership's view of the company's future.
Investors and analysts often monitor insider sales for hints about a company's performance, although it's important to note that selling shares does not necessarily indicate a negative outlook. Executives may have various reasons for selling stock, including diversifying their investment portfolio or meeting personal financial objectives.
The detailed transaction data is available in the public SEC filing, which provides transparency into the actions of Plexus Corp's executives and allows shareholders to stay informed about significant changes in insider ownership.
In other recent news, Plexus Corp. has been the subject of positive developments. Benchmark, after a site visit to Plexus' Wisconsin operations, raised the price target for Plexus Corp shares from $110 to $120, maintaining a "Buy" rating. The firm's confidence in Plexus' financial trajectory was bolstered by operational strengths, including the complexity of their products, technological innovation, and a corporate culture focused on quality, customer success, and sustainability.
Plexus Corp. reported a prosperous fiscal second quarter for 2024, marked by significant new program wins and a promising revenue growth forecast. The company announced $255 million in new program wins, contributing to an anticipated 9% to 12% revenue compound annual growth rate (CAGR) in the upcoming years. Moreover, Plexus Corp. expects to reach a 5.5% GAAP operating margin by fiscal 2025 and generated $65 million in free cash flow in the second quarter.
For the third quarter, Plexus Corp. anticipates revenues of $960 million to $1 billion and a non-GAAP operating margin between 5.2% and 5.6%. Alongside these financial developments, Plexus Corp. has also emphasized its commitment to sustainability, with an annual sustainability report set to be released soon. These are the recent developments for Plexus Corp., as reported in past articles.
InvestingPro Insights
In light of the recent insider transaction at Plexus Corp, a deeper look into the company's financial metrics and analyst sentiment may provide a broader context for investors. According to InvestingPro, Plexus has a market capitalization of $2.85 billion and is currently trading with a P/E ratio of 28.24, which adjusts to 21.75 when looking at the last twelve months as of Q2 2024. This valuation comes in the context of a revenue decrease of 6.44% over the same period, indicating potential headwinds in the company's income stream.
InvestingPro Tips highlight that analysts have recently revised their earnings estimates upwards for Plexus, suggesting a positive outlook on the company's profitability in the upcoming period. This is further supported by the prediction that Plexus will remain profitable this year. Additionally, the stock is noted for its low price volatility, which might appeal to investors seeking stability in their portfolio.
On the other hand, Plexus does not pay a dividend, which could be a consideration for income-focused investors. Moreover, the company's gross profit margins are described as weak, standing at 9.18% over the last twelve months as of Q2 2024, which may raise concerns about the company's efficiency in converting sales into gross profit.
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