Revathi Advaithi, Chief Executive Officer at Flex FLEX, reported an insider sell on May 14, according to a new SEC filing.
What Happened: Advaithi’s decision to sell 164,700 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 $6,915,654.
At Wednesday morning, Flex shares are up by 2.15%, trading at $42.75.
Unveiling the Story Behind 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.
Financial Milestones: Flex’s Journey
Revenue Growth: Flex’s revenue growth over a period of 3 months has faced challenges. As of 31 March, 2025, the company experienced a revenue decline of approximately -2.41%. This indicates a decrease in the company’s top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Evaluating Earnings Performance:
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Gross Margin: The company issues a cost efficiency warning with a low gross margin of 8.8%, indicating potential difficulties in maintaining profitability compared to its peers.
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Earnings per Share (EPS): Flex’s EPS lags behind the industry average, indicating concerns and potential challenges with a current EPS of 0.579479.
Debt Management: Flex’s debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.83, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
Analyzing Market Valuation:
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Price to Earnings (P/E) Ratio: The current P/E ratio of 19.83 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
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Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.65, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Flex’s EV/EBITDA ratio at 10.05 suggests potential undervaluation, falling below industry averages.
Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.
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Navigating the Impact of Insider Transactions on Investments
Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.
From a legal standpoint, the term “insider” pertains to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
A company insider’s new purchase is a indicator of their positive anticipation for a rise in the stock.
While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.
A Closer Look at Important Transaction Codes
For investors, a primary focus lies on transactions occurring in the open market, as indicated 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.
