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

Flex Ltd. (NASDAQ:FLEX)’s stock price dropped 6.4% on Monday . The company traded as low as $109.41 and last traded at $110.9810. Approximately 1,447,522 shares changed hands during mid-day trading, a decline of 72% from the average session volume of 5,102,961 shares. The stock had previously closed at $118.51.

Analyst Ratings Changes

A number of analysts recently issued reports on FLEX shares. Freedom Capital upgraded shares of Flex from a “hold” rating to a “strong-buy” rating in a report on Thursday, July 16th. Robert W. Baird set a $165.00 target price on shares of Flex in a research report on Thursday, May 7th. Weiss Ratings restated a “buy (b-)” rating on shares of Flex in a research note on Friday, July 17th. KeyCorp lifted their price target on shares of Flex from $75.00 to $180.00 and gave the stock an “overweight” rating in a report on Thursday, May 7th. Finally, Stifel Nicolaus increased their price objective on Flex from $75.00 to $95.00 and gave the company a “buy” rating in a report on Monday, April 20th. One research analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus target price of $115.70.

Flex Stock Performance

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 firm has a market capitalization of $40.41 billion, a PE ratio of 47.29, a P/E/G ratio of 0.62 and a beta of 1.64. The company’s fifty day simple moving average is $141.37 and its 200 day simple moving average is $98.22.

Flex (NASDAQ:FLEX) last posted its earnings results on Tuesday, March 31st. The technology company reported $0.93 earnings per share for the quarter. Flex had a net margin of 3.15% and a return on equity of 22.12%. The firm had revenue of $7.48 billion during the quarter. As a group, equities research analysts expect that Flex Ltd. will post 4.18 EPS for the current fiscal year.

Insider Activity

In other news, insider Michael P. Hartung sold 7,269 shares of the firm’s stock in a transaction on Thursday, June 18th. The stock was sold at an average price of $145.22, for a total value of $1,055,604.18. Following the completion of the transaction, the insider directly owned 245,930 shares of the company’s stock, valued at $35,713,954.60. This trade represents a 2.87% 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. Also, CAO Daniel Wendler sold 1,311 shares of the business’s stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $145.20, for a total value of $190,357.20. Following the sale, the chief accounting officer owned 37,932 shares in the company, valued at approximately $5,507,726.40. The trade was a 3.34% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders have sold 769,195 shares of company stock valued at $110,116,823. 0.62% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Flex

A number of institutional investors and hedge funds have recently modified their holdings of the company. Vanguard Group Inc. boosted its position in shares of Flex by 196.1% in the fourth quarter. Vanguard Group Inc. now owns 38,746,330 shares of the technology company’s stock valued at $2,341,053,000 after acquiring an additional 25,662,586 shares during the period. State Street Corp increased its holdings in Flex by 17.8% during the 4th quarter. State Street Corp now owns 14,055,533 shares of the technology company’s stock worth $849,235,000 after acquiring an additional 2,126,440 shares during the period. Geode Capital Management LLC lifted its stake in Flex by 2.4% in the 4th quarter. Geode Capital Management LLC now owns 7,605,802 shares of the technology company’s stock worth $459,829,000 after purchasing an additional 181,266 shares in the last quarter. Norges Bank bought a new position in Flex in the 4th quarter valued at $319,756,000. Finally, Polar Capital Holdings Plc grew its position in shares of Flex by 141.8% during the 4th quarter. Polar Capital Holdings Plc now owns 3,693,141 shares of the technology company’s stock valued at $223,140,000 after purchasing an additional 2,165,780 shares in the last quarter. 94.30% of the stock is owned by hedge funds and other 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.