Flex Ltd. (NASDAQ:FLEX) EVP and General Counsel David Scott Offer has sold a total of 20,000 shares of the company, according to recent SEC filings. The transactions, which took place on August 23 and 26, amounted to over $649,000.
The first sale on August 23 involved 10,000 shares at a weighted average price of $31.9947, with individual sale prices ranging from $31.75 to $32.20. A subsequent sale on August 26 also consisted of 10,000 shares, this time at a higher weighted average price of $32.9535, with sales prices varying from $32.83 to $33.04.
Following these transactions, the executive still holds a significant number of shares indirectly by trust, indicating continued investment in the company's future. It's worth noting that the executive's ownership includes unvested restricted share units (RSUs) that are set to vest between 2025 and 2026, further aligning their interests with those of the company and its shareholders.
Investors often keep a close eye on insider transactions as they can provide insights into the company's health and executive sentiment. While the reasons behind Offer's sales were not disclosed in the filings, the disclosed transactions provide transparency for shareholders and the market.
In other recent news, Flex Ltd. has made significant strides in its business operations. The company announced a robust Q1 earnings for fiscal year 2025, with net sales of $6.3 billion and a GAAP operating income of $233 million. Additionally, Flex Ltd. shareholders have approved several key proposals, including a substantial share repurchase plan with a maximum expenditure of $1.7 billion.
In the realm of acquisitions, Flex Ltd. has strategically acquired FreeFlow, an asset disposition and digital circular economy tracking specialist, and Ojjo, a renewable energy company. These acquisitions are set to enhance Flex's product lifecycle services and promote sustainability.
Furthermore, Flex Ltd. has been the recipient of upgrades from analyst firms. Craig-Hallum analyst upgraded the company's stock from Hold to Buy with a new price target of $39.00. Similarly, JPMorgan maintained an Overweight rating for the company while raising its price target to $40, highlighting Flex's ability to meet its fiscal year 2025 targets despite end-market challenges.
Finally, the company expects to grow its data center business at a compound annual growth rate of approximately 20% from fiscal year 2024 through 2029, potentially boosting the business's revenue from around $3 billion in FY24 to an estimated $8 billion by FY29. These are among the recent developments that underscore Flex Ltd.'s strategic moves and financial performance.
InvestingPro Insights
As Flex Ltd. (NASDAQ:FLEX) navigates the market, recent insider transactions have caught the attention of investors. With a Market Cap of approximately $12.9 billion and a current P/E Ratio of 14.49, Flex is trading at a low P/E ratio relative to near-term earnings growth. This could signal that the stock is undervalued, considering its future earnings potential.
InvestingPro Tips highlight that the company's management has been actively buying back shares, reflecting confidence in Flex's value proposition. Additionally, a high shareholder yield is often indicative of a company's commitment to returning value to its shareholders. These factors, combined with the fact that four analysts have revised their earnings upwards for the upcoming period, suggest that the market sentiment around Flex is positive.
On the financial front, Flex reported a Gross Profit of $2.014 billion over the last twelve months as of Q1 2025, with a Gross Profit Margin of 7.8%. While this demonstrates the company's ability to retain a portion of its sales after accounting for the cost of goods sold, it also reflects the challenge of weak gross profit margins that Flex is facing.
For those interested in the longer-term performance, Flex has shown a high return over the last year, with a 1 Year Price Total Return of 70.66%. This robust performance is also reflected in the stock trading near its 52-week high, at 95.11% of the peak price.
For additional insights and metrics, there are more InvestingPro Tips available at https://www.investing.com/pro/FLEX. These tips can provide investors with a deeper understanding of Flex's market position and future outlook.
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