Flex Ltd (NASDAQ:FLEX) has reported a significant transaction involving its EVP, General Counsel David Scott Offer. In a recent move, Offer sold a total of 11,056 ordinary shares of the company, with the transaction amounting to over $356,000. The sale took place on June 11, 2024, with the weighted average price per share being $32.1998. According to the details provided, the actual sale prices ranged from $31.93 to $32.48 per share.
Investors might note that the shares sold by Offer were used to cover tax withholding obligations associated with the vesting of restricted share units (RSUs). Following this transaction, Offer still holds a substantial number of shares in Flex Ltd, with 123,282 shares directly owned and an additional 87,094 shares indirectly owned through a trust.
The company's filing also provided insight into Offer's future share ownership. It highlighted that he holds 43,724 unvested RSUs set to vest in three equal annual installments starting on June 14, 2024, and another 23,043 unvested RSUs that will vest on June 1, 2025. Each unvested RSU represents a contingent right to receive one unrestricted, fully transferable share upon vesting.
Flex Ltd, with its headquarters in Singapore, operates in the printed circuit boards industry and is known for its manufacturing capabilities. The company's stock is publicly traded on NASDAQ under the ticker symbol FLEX. This latest transaction provides investors with an updated view of the insider trading activities within the company.
In other recent news, Flex has made strategic moves to enhance its product 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 intended to enable the sale of surplus and returned inventory through FreeFlow's B2B digital marketplace, safeguarding primary sales channels.
On the financial front, Flex reported Q4 and fiscal year 2024 results, revealing 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.
Flex also reported significant share buybacks in fiscal year 2024, totaling $1.3 billion. 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 developments are 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.
InvestingPro Insights
As investors digest the insider trading activities of Flex Ltd's EVP, General Counsel David Scott Offer, it's worth noting that the company's management has been actively repurchasing shares, a sign that could indicate their confidence in the firm's value proposition. This aligns with one of the InvestingPro Tips highlighting aggressive share buybacks by management.
Another key metric to consider is Flex Ltd's trading position. The stock is trading at a low P/E ratio relative to near-term earnings growth, suggesting that it may be undervalued compared to its growth potential. This is another InvestingPro Tip that could be of interest to those looking at the company's financial health and investment potential.
On the data front, InvestingPro Data metrics provide a snapshot of Flex Ltd's current standing in the market:1. The company is trading near its 52-week high, indicating strong market confidence.2. Analysts have predicted that Flex Ltd will be profitable this year, reaffirming the company's solid financial footing.3. Despite concerns over weak gross profit margins, Flex Ltd has managed to maintain a high shareholder yield, which could be attractive to income-focused investors.
For investors seeking more comprehensive analysis, there are additional InvestingPro Tips available that delve deeper into Flex Ltd's market performance and financials. By accessing InvestingPro at https://www.investing.com/pro/FLEX and using the coupon code PRONEWS24, users can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking a wealth of expert insights and data to inform their investment decisions.
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