Flex Ltd. (NASDAQ:FLEX) Chief Financial Officer Paul Lundstrom has sold a significant portion of his company shares, according to the latest regulatory filings. Lundstrom parted with a total of 199,800 shares at prices ranging from $32.4616 to $32.8425, netting approximately $6.49 million. Additionally, a smaller transaction involving 12,149 shares was conducted to cover tax withholding obligations related to the vesting of restricted share units, totaling around $391,191 at an average price of $32.1995 per share.
The transactions, completed on June 10th and 11th, were disclosed in a Form 4 filing with the Securities and Exchange Commission. After these sales, Lundstrom still holds a substantial number of shares in Flex Ltd., with a reported 281,878 shares remaining in his possession. This total includes 60,121 unvested restricted share units (RSUs) set to vest in three equal annual installments beginning on June 14, 2024, and 31,684 unvested RSUs that will vest on June 1, 2025. Each unvested RSU represents a contingent right to receive one unrestricted, fully transferable share upon vesting.
Flex Ltd., a leading company in the printed circuit boards industry, has seen its shares trade within a tight range during the time of the reported transactions. Investors often monitor insider sales for insights into executive perspectives on the company's valuation and potential future performance, although such transactions can be motivated by a variety of personal financial considerations.
The company, formerly known as Flextronics International Ltd., has its headquarters in Singapore and operates in the manufacturing sector, providing design, engineering, manufacturing, and supply chain services and solutions to various industries.
Paul Lundstrom's recent stock sales represent a notable change in his stake in the company, and investors will be watching closely for any future transactions or strategic shifts within Flex Ltd.'s leadership team.
In other recent news, Flex has made significant strides in its business operations. The company announced the acquisition of FreeFlow, a specialist in asset disposition and digital circular economy tracking for secondary markets. This move is aimed at bolstering Flex's product lifecycle services and promoting sustainability. With FreeFlow's platform, Flex intends to offer its customers the opportunity to generate additional revenue and support environmental commitments by extending the life of their products.
In addition to the acquisition, Flex has reported its Q4 and fiscal year 2024 results. Despite a 12% year-over-year decrease in Q4 revenue to $6.2 billion and a 7% drop in full-year revenue to $26.4 billion, the company saw an increase in profitability metrics. The gross profit for the quarter improved to $532 million and for the year reached $2.1 billion. Operating income rose by 3% to $1.3 billion, and earnings per share (EPS) saw an 11% increase to $2.15.
These developments come as part of Flex's strategic focus on digitization, regionalization, and sustainability. The company's outlook for fiscal 2025 includes a prediction of flat to a 3% decline in revenue, with adjusted operating margins between 5.2% and 5.4%, and an adjusted EPS between $2.30 and $2.50. The company also reported significant share buybacks in fiscal year 2024, totaling $1.3 billion. These recent developments highlight Flex's resilience and potential for future growth.
InvestingPro Insights
Amidst the news of CFO Paul Lundstrom's significant share sale, current and potential investors in Flex Ltd. (NASDAQ:FLEX) may find it interesting to consider additional financial metrics and analyst insights from InvestingPro. Here's a snapshot of Flex's recent performance and market position:
Flex Ltd. is currently trading at a P/E ratio of 13.92, which suggests the stock may be trading at a low price relative to its near-term earnings growth, an aspect that value-oriented investors might find appealing. Additionally, the company has a PEG ratio of 0.63 for the last twelve months as of Q4 2024, indicating a potentially favorable growth rate relative to its earnings.
Despite a decline in revenue growth of -7.32% over the same period, Flex has maintained a gross profit margin of 7.65%, which reflects the challenges in maintaining profitability. Moreover, the market has recognized the company's performance with a substantial 67.11% price uptick over the last six months, and a year-to-date price total return of 44.29% as of the latest data point.
InvestingPro Tips highlight that Flex has been a prominent player in the Electronic Equipment, Instruments & Components industry, with a high shareholder yield due to aggressive share buybacks. Furthermore, analysts predict the company will be profitable this year, as it has been over the last twelve months. These factors, combined with the company's high return over the last year and its trading near the 52-week high, paint a robust picture for Flex Ltd. in the eyes of many investors.
For those interested in a deeper dive into Flex Ltd.'s financials and future outlook, there are additional InvestingPro Tips available for consideration. For example, while some analysts have revised their earnings downwards for the upcoming period, the company's strong return over the last five years and a decade may balance the short-term concerns.
To access these insights and more, investors are encouraged to utilize the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/FLEX. With this subscription, users can explore a total of 14 InvestingPro Tips that can help in making informed investment decisions about Flex Ltd.
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