Flex (NASDAQ:FLEX) Trading Down 6.4% – Here’s Why

Flex Ltd. (NASDAQ:FLEX) shares were down 6.4% during trading on Monday . The company traded as low as $109.41 and last traded at $110.9810. 1,447,522 shares traded hands during trading, a decline of 72% from the average daily volume of 5,102,961 shares. The stock had previously closed at $118.51.

Wall Street Analyst Weigh In

Several equities analysts have recently issued reports on the company. Stifel Nicolaus upped their target price on Flex from $75.00 to $95.00 and gave the company a “buy” rating in a report on Monday, April 20th. Freedom Capital raised shares of Flex from a “hold” rating to a “strong-buy” rating in a report on Thursday, July 16th. KeyCorp upped their price target on Flex from $75.00 to $180.00 and gave the company an “overweight” rating in a research report on Thursday, May 7th. Robert W. Baird set a $165.00 target price on shares of Flex in a research note on Thursday, May 7th. Finally, Barclays increased their target price on Flex from $174.00 to $203.00 and gave the stock an “overweight” rating in a research report on Thursday, June 4th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $115.70.

Flex Stock Down 2.4%

The stock has a 50 day moving average price of $140.84 and a 200-day moving average price of $98.96. The company has a debt-to-equity ratio of 0.73, a current ratio of 1.36 and a quick ratio of 0.87. The stock has a market capitalization of $41.50 billion, a P/E ratio of 48.62, a PEG ratio of 0.61 and a beta of 1.64.

Flex (NASDAQ:FLEX) last posted its quarterly earnings results on Wednesday, July 29th. The technology company reported $1.00 EPS for the quarter, beating analysts’ consensus estimates of $0.90 by $0.10. Flex had a net margin of 3.15% and a return on equity of 22.12%. The company had revenue of $7.93 billion during the quarter, compared to analyst estimates of $7.53 billion. Flex has set its Q2 2027 guidance at 1.000-1.070 EPS and its FY 2027 guidance at 4.420-4.740 EPS. As a group, research analysts expect that Flex Ltd. will post 4.18 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, EVP David Scott Offer sold 33,000 shares of the company’s stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $153.91, for a total transaction of $5,079,030.00. Following the completion of the transaction, the executive vice president owned 73,471 shares in the company, valued at $11,307,921.61. This represents a 30.99% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Revathi Advaithi sold 197,879 shares of Flex stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $144.32, for a total transaction of $28,557,897.28. Following the completion of the sale, the chief executive officer owned 623,466 shares in the company, valued at approximately $89,978,613.12. This trade represents a 24.09% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 769,195 shares of company stock worth $110,116,823 in the last quarter. 0.62% of the stock is currently owned by company insiders.

Institutional Trading of Flex

Several large investors have recently bought and sold shares of the company. USA Financial Formulas purchased a new stake in shares of Flex in the 4th quarter worth about $28,000. Frazier Financial Advisors LLC purchased a new stake in Flex in the fourth quarter worth about $28,000. Parkside Financial Bank & Trust increased its stake in shares of Flex by 57.0% during the fourth quarter. Parkside Financial Bank & Trust now owns 457 shares of the technology company’s stock valued at $28,000 after purchasing an additional 166 shares in the last quarter. Gables Capital Management Inc. purchased a new position in shares of Flex during the fourth quarter valued at approximately $42,000. Finally, Caitong International Asset Management Co. Ltd lifted its holdings in shares of Flex by 6,318.2% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 706 shares of the technology company’s stock valued at $43,000 after purchasing an additional 695 shares during the last quarter. 94.30% of the stock is owned by institutional investors.

Flex Company Profile

Flex (NASDAQ: FLEX), formerly known as Flextronics, is a global provider of electronics manufacturing services (EMS) and original design manufacturing (ODM). The company offers end-to-end product lifecycle solutions including product design and engineering, prototyping, volume manufacturing, testing, and aftermarket services. Its offerings extend into supply chain management, component sourcing, logistics and distribution, and advanced manufacturing capabilities such as automation and digital manufacturing to support customers from concept through end-of-life.

Flex serves a broad range of industries, including automotive, healthcare, industrial, communications, and consumer electronics, working with original equipment manufacturers (OEMs) and technology companies to accelerate time to market and manage complex supply chains.