It was reported on May 14, that Daniel Wendler, Chief Accounting Officer at Flex FLEX executed a significant insider sell, according to an SEC filing.
What Happened: Wendler’s decision to sell 4,502 shares of Flex was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $189,040.
At Wednesday morning, Flex shares are up by 2.15%, trading at $42.75.
Discovering Flex: A Closer Look
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.
Financial Milestones: Flex’s Journey
Decline in Revenue: Over the 3 months period, Flex faced challenges, resulting in a decline of approximately -2.41% in revenue growth as of 31 March, 2025. This signifies a reduction in the company’s top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.
Interpreting Earnings Metrics:
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Gross Margin: The company shows a low gross margin of 8.8%, suggesting potential challenges in cost control and profitability compared to its peers.
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Earnings per Share (EPS): Flex’s EPS is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.579479.
Debt Management: Flex’s debt-to-equity ratio surpasses industry norms, standing at 0.83. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
Analyzing Market Valuation:
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Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 19.83, the stock indicates an attractive valuation, potentially presenting a buying opportunity.
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Price to Sales (P/S) Ratio: The P/S ratio of 0.65 is lower than the industry average, implying a discounted valuation for Flex’s stock in relation to sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 10.05, Flex presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.
Market Capitalization: Exceeding industry standards, the company’s market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.
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The Relevance of Insider Transactions
Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it’s crucial to evaluate them in conjunction with other investment factors.
In the realm of legality, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.
Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.
Deciphering Transaction Codes in Insider Filings
Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely 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 signals 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.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
