In a recent transaction, Plexus Corp 's (NASDAQ:PLXS) Executive Vice President and Chief Financial Officer, Patrick John Jermain, sold shares of the company's stock. The transaction, which took place on May 7, 2024, involved the sale of 2,000 shares at a price of $107 per share, amounting to a total value of $214,000.
This sale was conducted under a Rule 10b5-1 trading plan, which was adopted on January 31, 2024. Rule 10b5-1 plans allow corporate insiders to set up a predetermined plan to sell company stocks, which helps to avoid accusations of insider trading. The shares sold by Jermain were held directly by him, and following the transaction, he still owned a total of 39,182 shares of Plexus Corp.
Plexus Corp, with its headquarters located at One Plexus Way in Neenah, Wisconsin, operates within the printed circuit boards industry. The company's fiscal year ends on September 28, and it's incorporated in the state of Wisconsin. Investors often monitor the buying and selling activities of top executives as these transactions can provide insights into their perspective on the company's future performance.
It is also noted that some of the shares owned by Jermain are held in the Plexus Corp. 401(k) Retirement Plan, as per the latest report from the plan's trustee. However, the recent transaction did not involve those particular shares.
As of the last filing, Patrick John Jermain continues to maintain a significant holding in the company, demonstrating ongoing vested interest in the company's success. Investors and analysts often look at insider transactions as a gauge of confidence in the company's prospects, making this sale a point of interest for those following Plexus Corp's financial trajectory.
InvestingPro Insights
The recent insider selling at Plexus Corp (NASDAQ:PLXS) by Executive Vice President and CFO Patrick John Jermain may raise questions among investors about the stock's valuation and future performance. To gain a clearer picture, let's consider some key metrics and insights from InvestingPro:
Plexus Corp's current market capitalization stands at approximately $2.94 billion, with a price-to-earnings (P/E) ratio of 29.04, reflecting investor expectations of future earnings growth. Notably, the company's P/E ratio for the last twelve months as of Q2 2024 adjusts to a lower 22.41, potentially indicating a more favorable valuation compared to the standard P/E ratio.
With a price-to-book (P/B) ratio of 2.33 for the same period, the company's stock is trading at a level that suggests the market is valuing its assets reasonably in relation to its share price. However, investors should be mindful of the company's gross profit margin, which at 9.18% indicates that Plexus Corp is facing challenges in maintaining higher profitability relative to its revenue.
On the upside, two analysts have revised their earnings estimates upwards for the upcoming period, which could signal positive sentiment regarding the company's earning potential. Moreover, Plexus Corp is trading near its 52-week high, with the price at 94.19% of this peak, reflecting robust investor confidence.
For those interested in gaining further insights and analysis, there are additional InvestingPro Tips available for Plexus Corp. These include observations on stock volatility, debt levels, and profitability. To access these valuable tips and enhance your investment strategy, visit InvestingPro and consider using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. Currently, there are 9 additional InvestingPro Tips listed for Plexus Corp that could provide investors with a more comprehensive understanding of the stock.
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