Flex Ltd. (NASDAQ:FLEX), a leading company in the printed circuit boards industry, has reported a significant transaction by its Chief Executive Officer, Revathi Advaithi. According to the latest regulatory filings, Advaithi sold 61,042 ordinary shares of the company on June 4, 2024, at a weighted average price of $32.533 per share. The total value of the shares sold amounts to approximately $1,985,879.
The transaction was carried out primarily to cover tax withholding obligations related to the vesting of restricted share units (RSUs). The actual sales prices of the shares ranged from $32.32 to $33.04, as indicated by the footnotes in the filing. The CEO now holds a total of 1,842,362 shares in the company following the transaction. This number includes 495,551 unvested RSUs that are scheduled to vest on various dates ranging from June 9, 2024, to June 1, 2025.
Investors often monitor insider transactions such as these for insights into executive confidence in the company's future performance. Sales to cover tax obligations, however, are a routine part of compensation for executives and may not necessarily signal a lack of confidence.
Flex Ltd. has not made any additional comments regarding the transaction. The details provided in the SEC filing are available for review by the Commission staff, the issuer, or any security holder of the issuer upon request.
In other recent news, Flex has made strategic moves to boost its lifecycle services and promote sustainability. The company recently acquired FreeFlow, a specialist in asset disposition and digital circular economy tracking for secondary markets. This acquisition is designed to enhance Flex's product lifecycle services by enabling the sale of surplus and returned inventory through FreeFlow's B2B digital marketplace.
Simultaneously, Flex reported its Q4 and fiscal year 2024 results, showing resilient growth despite a decrease in revenue. The company's Q4 revenue was $6.2 billion, a 12% year-over-year decrease, and the full-year revenue was $26.4 billion, a 7% drop. However, profitability metrics such as gross profit, operating income, and earnings per share (EPS) showed an increase.
In other developments, Flex plans to broaden the reach of FreeFlow's services into additional industry segments and regions. This move is part of Flex's larger effort to meet the growing demand for circular economy solutions and to support its diverse customer base in creating products that contribute positively to the world.
Despite the revenue dip, 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 EPS between $2.30 and $2.50. These are the recent developments in Flex's business operations and financial performance.
InvestingPro Insights
As investors digest the news of Flex Ltd.'s CEO's recent share sale, it's essential to consider the broader financial context provided by InvestingPro data and insights. With a market capitalization of $12.96 billion and a P/E ratio standing at 13.94, Flex appears to be trading at a reasonable valuation relative to its earnings. Moreover, the company's share price is hovering near its 52-week high, currently at 94.55% of this peak, which may indicate market confidence in its prospects.
InvestingPro Tips highlight that Flex Ltd. is a prominent player in its industry and has experienced a high return over the last year, with a year-to-date price total return of 45.6%. Additionally, the company has been profitable over the last twelve months, with a basic EPS (Continuing Operations) of $1.46. These metrics suggest a robust financial performance, which may reassure investors following the CEO's share sale.
For those looking to delve deeper into the financials and future outlook of Flex Ltd., there are additional InvestingPro Tips available at https://www.investing.com/pro/FLEX. Subscribers can access these tips and more by using the coupon code PRONEWS24 to receive an additional 10% off a yearly or biyearly Pro and Pro+ subscription. With several analysts revising their earnings downwards for the upcoming period, these insights could prove invaluable for making informed investment decisions. Flex Ltd. currently has 13 more InvestingPro Tips listed, offering a comprehensive analysis of its financial health and market position.
As always, it is recommended for investors to review the full spectrum of data and guidance available to make the most informed decisions regarding their investment portfolios.
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