Flex Ltd. (NASDAQ:FLEX) Group President Tan Kwang Hooi has recently sold a total of 12,626 ordinary shares of the company, according to the latest SEC filings. The transactions, which took place on June 4, 2024, resulted in proceeds exceeding $410,000 for the executive.
The shares were sold at prices ranging from $32.33 to $33.04, with a weighted average sale price of $32.5339 per share. This sale was executed to cover tax withholding obligations related to the vesting of restricted share units (RSUs), as noted in the footnotes accompanying the SEC filing.
Following this transaction, Tan Kwang Hooi still holds a substantial number of shares in Flex Ltd. The post-sale ownership includes 151,030 shares, of which a significant portion consists of unvested RSUs. These RSUs are scheduled to vest on upcoming dates, with the first batch due on June 14, 2024, followed by annual installments beginning the same day, and a final set on June 1, 2025.
Investors and followers of Flex Ltd. can request additional details about the specific number of shares sold at each price point from the reporting person, as indicated in the footnotes of the SEC filing.
Tan Kwang Hooi, serving as Group President of Flex Ltd., remains significantly invested in the company with both vested and unvested shares, indicating a continued alignment with the company's performance and shareholder interests.
In other recent news, Flex has made strategic moves to boost its lifecycle services and promote sustainability. The company has acquired FreeFlow, a specialist in asset disposition and digital circular economy tracking. The acquisition aims to enhance Flex's product lifecycle services by enabling the sale of surplus and returned inventory through FreeFlow's B2B digital marketplace. This move reaffirms Flex's commitment to delivering high value to its customers and addressing their evolving business and sustainability needs.
In terms of earnings and revenue, Flex reported its Q4 and fiscal year 2024 results. Despite a 12% year-over-year decrease in Q4 revenue to $6.2 billion, and a 7% drop in full-year revenue to $26.4 billion, profitability metrics such as gross profit, operating income, and earnings per share (EPS) showed an increase. The gross profit for the quarter improved to $532 million, and for the year, it reached $2.1 billion. Operating income rose by 3% to $1.3 billion, and EPS saw an 11% increase to $2.15.
Flex'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 recent developments highlight Flex's strategic focus on digitization, regionalization, and sustainability, as well as its differentiation in power and compute.
InvestingPro Insights
Amid the recent insider trading activity at Flex Ltd. (NASDAQ:FLEX), the company's financial metrics and market performance provide a broader context for understanding its stock value. According to InvestingPro data, Flex Ltd. boasts a market capitalization of $12.96 billion and is trading at a P/E ratio of 13.94, reflecting a valuation that may be attractive to investors looking for a reasonable entry point relative to near-term earnings growth.
Investors should note that Flex has experienced a significant price uptick over the last six months, with a 74.61% total return, and it is currently trading at approximately 94.55% of its 52-week high. This performance is indicative of strong market confidence and momentum in the company's stock. Additionally, the company's high return over the last year of 67.04% underscores its robust growth trajectory, which is further supported by an InvestingPro Tip highlighting Flex's status as a prominent player in the Electronic Equipment, Instruments & Components industry.
While the company does not pay dividends, which may deter income-focused investors, its high shareholder yield is an important factor to consider. This is reinforced by the fact that management has been aggressively buying back shares, a move that can signal leadership's belief in the company's undervaluation and long-term prospects.
For those interested in further analysis and tips, InvestingPro offers additional insights on Flex Ltd. There are currently 13 more InvestingPro Tips available at https://www.investing.com/pro/FLEX. Readers looking to access these exclusive tips and metrics can take advantage of a special offer using the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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