Michael P. Hartung, the Group President of Flex Ltd. (NASDAQ:FLEX), has sold 10,183 ordinary shares of the company, with the total transaction amounting to over $327,892. The sale occurred on June 11, 2024, with the weighted average sales price per share being $32.20. However, the prices varied, ranging from $31.93 to $32.48 per share.
The transaction was part of a planned sale to cover tax withholding obligations related to the vesting of restricted share units (RSUs). Following this sale, Hartung still maintains a significant stake in the company, owning 164,023 shares, which include both vested and unvested RSUs. The unvested RSUs are scheduled to vest over the next few years, with a portion vesting in three equal annual installments starting June 14, 2024, and another portion vesting on June 1, 2025.
Investors often keep a close watch on insider transactions as they provide insights into executives' perspectives on the company's stock value. The sale of shares by a high-ranking executive like Hartung may be of particular interest to current and potential shareholders of Flex Ltd.
Flex Ltd., headquartered in Singapore, operates in the field of printed circuit boards manufacturing and has a global presence. The company has evolved through various name changes and rebranding efforts over the years, reflecting its growth and diversification in the electronics manufacturing services industry.
The transaction was officially filed on June 12, 2024, and the details were disclosed as per regulatory requirements. Hartung's remaining shares in Flex Ltd. indicate a continued vested interest in the company's success and growth.
In other recent news, Flex has made notable strategic moves and shared its financial results. The company has acquired FreeFlow, a specialist in asset disposition and digital circular economy tracking. This acquisition is expected to enhance Flex's product lifecycle services and promote sustainability by enabling the sale of surplus and returned inventory through FreeFlow's B2B digital marketplace.
Alongside this acquisition, Flex reported its Q4 and fiscal year 2024 results. Despite a 12% year-over-year decrease in Q4 revenue and a 7% drop in full-year revenue, the company showed improved profitability metrics. The gross profit for the quarter rose to $532 million, and for the year, it reached $2.1 billion. Operating income increased by 3% to $1.3 billion, and earnings per share saw an 11% rise to $2.15.
These recent developments follow Flex's strategic focus on digitization, regionalization, and sustainability. The company's outlook for fiscal 2025 includes a prediction of flat to 3% decline in revenue, with adjusted operating margins between 5.2% and 5.4%, and an adjusted earnings per share between $2.30 and $2.50. Flex also reported significant share buybacks in fiscal year 2024, totaling $1.3 billion.
InvestingPro Insights
As investors parse through the insider trading activity of Flex Ltd. (NASDAQ:FLEX), it's crucial to consider broader financial metrics that may indicate the company's current market standing and future potential. According to InvestingPro data, Flex Ltd. boasts a market capitalization of $12.81 billion, underlining its significant presence in the electronics sector. Additionally, the company's P/E ratio stands at 13.92, suggesting a potentially attractive valuation relative to its earnings.
Despite recent insider sales, the company's financial health appears robust, with a substantial gross profit of $2.02 billion over the last twelve months as of Q4 2024. This performance is noteworthy, although it is accompanied by a gross profit margin of 7.65%, reflecting the competitive pressures in the manufacturing domain. Moreover, Flex Ltd. has experienced a remarkable six-month price total return of 67.11%, highlighting strong investor confidence and market momentum. This is further supported by the company trading near its 52-week high, at 93.7% of the peak price.
InvestingPro Tips also shed light on key strategic moves by the company's management, such as aggressive share buybacks and a high shareholder yield, which can be compelling factors for investors considering Flex Ltd.'s stock. Additionally, while analysts have revised their earnings expectations downwards for the upcoming period, the company is still anticipated to be profitable this year, with a strong return over the last year. For those intrigued by these insights, InvestingPro offers more comprehensive analysis and tips, with a total of 13 additional tips available for Flex Ltd. at https://www.investing.com/pro/FLEX. To delve deeper into these expert insights, use the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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