Revealing a significant insider sell on June 5, Michael P Hartung, Chief Commercial Officer at Flex FLEX, as per the latest SEC filing.
What Happened: A Form 4 filing with the U.S. Securities and Exchange Commission on Thursday outlined that Hartung executed a sale of 46,418 shares of Flex with a total value of $1,990,287.
Flex‘s shares are actively trading at $42.92, experiencing a up of 0.35% during Thursday’s morning session.
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.
Key Indicators: Flex’s Financial Health
Revenue Growth: Over the 3 months period, Flex showcased positive performance, achieving a revenue growth rate of 3.71% as of 31 March, 2025. This reflects a substantial increase in the company’s top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.
Analyzing 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): With an EPS below industry norms, Flex exhibits below-average bottom-line performance with a current EPS of 0.587585.
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.
Financial Valuation:
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Price to Earnings (P/E) Ratio: The P/E ratio of 20.27 is lower than the industry average, implying a discounted valuation for Flex’s stock.
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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 a below-average EV/EBITDA ratio of 10.01, Flex presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.
Market Capitalization Analysis: The company’s market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.
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Navigating the Impact of Insider Transactions on Investments
While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor’s decision-making process.
In the context of 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 outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.
Pointing towards optimism, a company insider’s new purchase signals their positive anticipation for the stock to rise.
Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.
Unlocking the Meaning of Transaction Codes
Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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.
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