Benzinga - by Benzinga Insights, Benzinga Staff Writer.
Revealing a significant insider sell on June 13, David Scott Offer, EVP at Flex (NASDAQ:FLEX), as per the latest SEC filing.
What Happened: Offer's decision to sell 11,056 shares of Flex was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the sale is $356,000.
During Thursday's morning session, Flex shares down by 1.09%, currently priced at $31.62.
About Flex Flex Ltd is a contract manufacturing company providing comprehensive electronics design, manufacturing, and product management services to electronics and technology companies. The company's operating segments include Flex Agility Solutions (FAS) and Flex Reliability Solutions (FRS). Flex Agility Solutions segment includes markets such as Communications, Enterprise and Cloud; Lifestyle; and Consumer Devices. Flex Reliability Solutions segment includes markets such as Automotive, Health Solutions, and Industrial.
A Deep Dive into Flex's Financials Decline in Revenue: Over the 3 months period, Flex faced challenges, resulting in a decline of approximately -20.02% in revenue growth as of 31 March, 2024. This signifies a reduction in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.
Insights into Profitability:
- Gross Margin: The company issues a cost efficiency warning with a low gross margin of -0.64%, indicating potential difficulties in maintaining profitability compared to its peers.
- Earnings per Share (EPS): Flex's EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.967896.
Evaluating Valuation:
- Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 16.15 is lower than the industry average, indicating potential undervaluation for the stock.
- Price to Sales (P/S) Ratio: The P/S ratio of 0.53 is lower than the industry average, implying a discounted valuation for Flex's stock in relation to sales performance.
- EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Flex's EV/EBITDA ratio, lower than industry averages at 10.02, indicates attractively priced shares.
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The Relevance of Insider Transactions In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.
When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
A new purchase by a company insider is a indication that they anticipate the stock will rise.
On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Transaction Codes To Focus On When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.
Check Out The Full List Of Flex's Insider Trades.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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