Michael J. Running, Regional President - AMER at Plexus Corp (NASDAQ:PLXS), recently sold 579 shares of the company's common stock. The shares were sold on November 14 at an average price of $153.93, amounting to a total transaction value of $89,125. Following this sale, Running holds 1,569 shares directly.
On November 13, Running also disposed of 475 shares to cover tax obligations, valued at $155.88 per share, resulting in a transaction total of $74,043. This transaction was part of a series of movements involving performance stock units and common stock.
In other recent news, Plexus Corp demonstrated a robust financial performance, reporting a 3% year-over-year increase in Fiscal Year 2024's fourth quarter revenue, surpassing its own guidance. The company's adjusted earnings per share also exceeded expectations due to stronger gross and operating margins. Despite a projected 7% quarter-over-quarter decline in revenue for Fiscal Year 2025's first quarter, Plexus provided a solid earnings forecast, supported by healthy margins.
Investment firm Needham increased its price target for Plexus to $162.00, maintaining its Buy rating. Meanwhile, KeyBanc initiated coverage on Plexus with a Sector Weight rating, acknowledging the company's strong growth prospects but pointing out its high valuation. Benchmark, another financial advisory firm, also maintained a Buy rating for Plexus and raised its price target to $150.
In other developments, Plexus announced a new $50 million stock buyback plan and secured over $500 million in contracts in the healthcare life sciences sector over the past four quarters. The company anticipates a mid-single-digit revenue increase in the fiscal fourth quarter, despite slower growth in the aerospace and defense sector due to supply constraints and customer design changes.
InvestingPro Insights
As Michael J. Running, Regional President - AMER at Plexus Corp (NASDAQ:PLXS), reduces his stake, investors might be interested in the broader financial picture of the company. According to InvestingPro data, Plexus Corp has a market capitalization of $4.18 billion and is trading at a P/E ratio of 37.55, which suggests a premium valuation compared to industry peers.
Despite the recent insider sale, Plexus has shown strong performance in the market. InvestingPro Tips highlight that the company has delivered a robust return over the last month, with a 13.1% price increase, and an even more impressive 24.45% gain over the past three months. This positive momentum extends to a 41.83% return over the last six months, indicating sustained investor confidence.
However, it's worth noting that Plexus operates with a moderate level of debt and suffers from weak gross profit margins, which stood at 9.56% for the last twelve months as of Q4 2024. These factors may influence the company's financial flexibility and profitability going forward.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Plexus Corp, providing deeper insights into the company's financial health and market position.
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