It was reported on June 5, that David Scott Offer, EVP at Flex FLEX executed a significant insider sell, according to an SEC filing.
What Happened: Offer’s recent move involves selling 46,419 shares of Flex. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value is $1,990,303.
In the Thursday’s morning session, Flex‘s shares are currently trading at $42.92, experiencing a up of 0.35%.
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
Positive Revenue Trend: Examining Flex’s financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 3.71% as of 31 March, 2025, showcasing a substantial increase in 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 is below the industry average, signaling challenges in bottom-line performance with a current EPS of 0.587585.
Debt Management: Flex’s debt-to-equity ratio stands notably higher than the industry average, reaching 0.83. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.
Analyzing Market Valuation:
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Price to Earnings (P/E) Ratio: Flex’s P/E ratio of 20.27 is below the industry average, suggesting the stock may be undervalued.
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Price to Sales (P/S) Ratio: With a P/S ratio of 0.66 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 10.01, Flex presents an attractive value opportunity.
Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.
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The Importance of Insider Transactions
In the complex landscape of investment decisions, investors should approach insider transactions as part of a comprehensive analysis, considering various elements.
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.
Navigating the World of Insider Transaction Codes
Examining transactions, investors often concentrate on those unfolding 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.
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This article was generated by Benzinga’s automated content engine and reviewed by an editor.
