Making a noteworthy insider sell on May 14, Tan Kwang Hooi, Chief Operating Officer at Flex FLEX, is reported in the latest SEC filing.
What Happened: After conducting a thorough analysis, Hooi sold 34,335 shares of Flex. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total transaction value is $1,441,719.
The latest market snapshot at Wednesday morning reveals Flex shares up by 2.15%, trading at $42.75.
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.
Unraveling the Financial Story of Flex
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.
Key Profitability Indicators:
-
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.
-
Earnings per Share (EPS): Flex’s EPS is below the industry average. The company faced challenges with a current EPS of 0.579479. This suggests a potential decline in earnings.
Debt Management: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 0.83, caution is advised due to increased financial risk.
Insights into Valuation Metrics:
-
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.
-
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.
-
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 Analysis: The company’s market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.
Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.
Why Pay Attention to Insider Transactions
Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.
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.
Cracking 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.
Insider Buying Alert: Profit from C-Suite Moves
Benzinga Edge reveals every insider trade in real-time. Don’t miss the next big stock move driven by insider confidence. Unlock this ultimate sentiment indicator now. Click here for access.
This article was generated by Benzinga’s automated content engine and reviewed by an editor.
