In a recent transaction on July 16, Todd P. Kelsey, President and CEO of Plexus Corp (NASDAQ:PLXS), sold 1,656 shares of the company's common stock at an average price of $115 per share, totaling $190,440. The sale was conducted under a prearranged 10b5-1 trading plan, which allows company insiders to set up a predetermined plan to sell stocks at a time when they are not in possession of material non-public information.
The transaction was disclosed in a Form 4 filing with the Securities and Exchange Commission dated July 18. Following the sale, Kelsey still owns a significant amount of Plexus Corp stock, with 96,682 shares remaining in his possession. The company, headquartered in Neenah, Wisconsin, specializes in the manufacturing of printed circuit boards and is known for its role in the technology sector's supply chain.
Investors often monitor insider sales as they can provide insights into an executive's view of the company's current valuation and future prospects. However, it's important to note that insider trading activity can be subject to various motivations and may not necessarily reflect the executive's outlook on the company's future performance.
Plexus Corp's stock performance and insider transactions continue to be watched closely by investors seeking to understand market trends and company-specific developments.
"In other recent news, Plexus Corp reported a strong fiscal second quarter for 2024, with significant new program wins and an optimistic revenue growth forecast. The company announced $255 million in new program wins, which are expected to contribute to a 9% to 12% revenue compound annual growth rate (CAGR) in the coming years. Furthermore, Plexus Corp anticipates achieving a 5.5% GAAP operating margin by fiscal 2025 and generated $65 million in free cash flow in the second quarter. For the upcoming third quarter, revenues are projected to be between $960 million and $1 billion, with a non-GAAP operating margin between 5.2% and 5.6%.
Benchmark, an independent research firm, has raised the price target for Plexus Corp shares to $120 from the previous $110, maintaining a "Buy" rating on the stock. This decision follows a site visit to Plexus' Wisconsin operations, which has increased confidence in the company's financial trajectory. The company's recent success in winning new programs and gaining market share is expected to continue supporting growth opportunities.
In addition to these financial highlights, Plexus Corp has also emphasized its commitment to sustainability, with an annual sustainability report set to be released soon. These developments are part of recent events that have shaped the company's current standing in the market."
InvestingPro Insights
As investors assess the implications of Todd P. Kelsey's recent stock sale, real-time data and insights from InvestingPro can provide a deeper understanding of Plexus Corp's (NASDAQ:PLXS) current market position. The company's market capitalization stands at a robust $3.2 billion, reflecting investor confidence in its scale and stability within the technology sector. Plexus Corp's price-to-earnings (P/E) ratio is observed at 31.52, which offers a perspective on the stock's valuation relative to its earnings.
Looking at performance, Plexus Corp has demonstrated a strong return over the last week, with a 10.33% price total return. This momentum extends over the last month and three months, where the total returns are 15.78% and 28.11%, respectively. Such performance metrics are indicative of the stock's recent favorable market movements and may influence investor sentiment.
InvestingPro Tips also reveal that analysts have revised their earnings upwards for the upcoming period, suggesting a positive outlook on the company's financial prospects. Additionally, the stock is currently trading near its 52-week high, with the price at 97.14% of this peak, indicating that it may be in overbought territory according to the Relative Strength Index (RSI).
For investors seeking a comprehensive analysis of Plexus Corp, InvestingPro offers additional insights. There are more InvestingPro Tips available, which can be accessed by visiting https://www.investing.com/pro/PLXS. Those interested in obtaining a full array of professional analytics and tips can use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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