Flex (NASDAQ:FLEX) Stock Falls 13.8% – What’s Next?

Flex Ltd. (NASDAQ:FLEX)’s share price traded down 13.8% on Wednesday. The stock traded as low as $75.73 and last traded at $75.9290. 3,338,002 shares were traded during mid-day trading, a decline of 31% from the average session volume of 4,867,858 shares. The stock had previously closed at $88.10.

Key Stories Impacting Flex

Here are the key news stories impacting Flex this week:

• Positive Sentiment: Flex raised its fiscal 2027 outlook as AI infrastructure demand accelerates and its Cloud and Power Infrastructure (CPI) business grows. CPI revenue reportedly surged 54%, with power solutions, liquid cooling and services adding to growth opportunities. FLEX Q2 Earnings Call Highlights Axiom Spin-Off and AI Growth
• Positive Sentiment: Zacks Research upgraded Flex from “hold” to “strong buy,” a positive signal about the firm’s prospects. Tickerreport.com report on Flex upgrade
• Positive Sentiment: Flex is advancing plans to spin off CPI as Axiom Solutions International, a move that could help investors value the cloud and power infrastructure business separately, though the outcome is not assured. Flex’s 2027 Axiom Spin-Off: Will Two Firms Unlock Value for Investors?
• Neutral Sentiment: The articles provide no clear company-specific negative news to explain the decline. Investors may nonetheless be weighing spin-off execution and whether strong AI-related growth can be sustained.

Analysts Set New Price Targets

FLEX has been the subject of a number of research reports. Raymond James Financial set a $170.00 target price on shares of Flex and gave the company an “outperform” rating in a research note on Wednesday, July 29th. Weiss Ratings cut Flex from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Thursday, September 17th. The Goldman Sachs Group dropped their target price on Flex from $154.00 to $145.00 in a research report on Friday, October 16th. Freedom Capital raised Flex from a “hold” rating to a “strong-buy” rating in a research note on Thursday, July 16th. Finally, Zacks Research upgraded Flex from a “hold” rating to a “strong-buy” rating in a report on Monday. Two research analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock has an average rating of “Buy” and an average price target of $131.78.

Flex Stock Performance

The company has a market cap of $28.59 billion, a price-to-earnings ratio of 28.05, a P/E/G ratio of 0.39 and a beta of 1.80. The company has a debt-to-equity ratio of 0.90, a current ratio of 1.34 and a quick ratio of 0.85. The firm has a fifty day simple moving average of $104.80 and a 200 day simple moving average of $103.06.

Flex (NASDAQ:FLEX) last issued its quarterly earnings data on Wednesday, October 28th. The technology company reported $1.18 earnings per share for the quarter, topping analysts’ consensus estimates of $1.06 by $0.12. The business had revenue of $8.49 billion during the quarter, compared to analysts’ expectations of $8.17 billion. Flex had a net margin of 3.35% and a return on equity of 24.93%. Flex’s revenue for the quarter was up 24.8% on a year-over-year basis. During the same period in the previous year, the company earned $0.79 earnings per share. On average, sell-side analysts expect that Flex Ltd. will post 4.52 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Flex news, insider Michael P. Hartung sold 2,755 shares of the company’s stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $120.64, for a total transaction of $332,363.20. Following the completion of the sale, the insider directly owned 243,175 shares in the company, valued at $29,336,632. This represents a 1.12% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 0.62% of the stock is currently owned by corporate insiders.

Institutional Trading of Flex

Several hedge funds have recently added to or reduced their stakes in FLEX. Burkett Financial Services LLC acquired a new position in shares of Flex during the third quarter worth approximately $25,000. Reyes Financial Architecture Inc. acquired a new stake in shares of Flex in the third quarter worth $28,000. Rosenberg Matthew Hamilton bought a new position in Flex during the third quarter worth $29,000. Security National Bank of SO Dak bought a new position in Flex during the second quarter worth $89,000. Finally, Signature Equity Partners LLC raised its stake in Flex by 56.3% during the 3rd quarter. Signature Equity Partners LLC now owns 605 shares of the technology company’s stock valued at $67,000 after purchasing an additional 218 shares during the last quarter. Institutional investors own 94.30% of the company’s stock.

About Flex

Flex Ltd. (NASDAQ: FLEX) is a global manufacturing and supply chain solutions provider. The company helps original equipment manufacturers design, engineer, manufacture, distribute and service products across their lifecycles.

Flex serves customers in industries including automotive, communications, consumer electronics, health care, industrial, lifestyle and cloud infrastructure. Its capabilities include product design and engineering, printed circuit board assembly, systems integration, supply chain management, logistics, and aftermarket services.

The company was founded in 1969 as Flextronics and later adopted the name Flex.