Making a noteworthy insider sell on May 14, Michael P Hartung, Chief Commercial Officer at Flex FLEX, is reported in the latest SEC filing.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Wednesday showed that Hartung sold 32,173 shares of Flex. The total transaction amounted to $1,350,908.
The latest update on Wednesday morning shows Flex shares 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.
Flex: Delving into Financials
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. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.
Profitability 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. The company faced challenges with a current EPS of 0.579479. This suggests a potential decline in earnings.
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.
Understanding Financial Valuation:
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Price to Earnings (P/E) Ratio: The P/E ratio of 19.83 is lower than the industry average, implying a discounted valuation for Flex’s stock.
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Price to Sales (P/S) Ratio: The current P/S ratio of 0.65 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Flex’s EV/EBITDA ratio, lower than industry averages at 10.05, indicates attractively priced shares.
Market Capitalization Analysis: Above industry benchmarks, the company’s market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
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Exploring the Significance of Insider Trading
Insider transactions serve as a piece of the puzzle in investment decisions, rather than the entire picture.
Exploring the legal landscape, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.
Highlighted by a company insider’s new purchase, there’s a positive anticipation for the stock to rise.
But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.
Deciphering Transaction Codes in Insider Filings
Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies 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.
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