Flex (NASDAQ:FLEX) Shares Gap Up – What’s Next?

Shares of Flex Ltd. (NASDAQ:FLEX) gapped up prior to trading on Tuesday . The stock had previously closed at $108.32, but opened at $111.47. Flex shares last traded at $109.4370, with a volume of 94,338 shares changing hands.

Key Stories Impacting Flex

Here are the key news stories impacting Flex this week:

• Positive Sentiment: Flex named the planned cloud and power-infrastructure spin-off Axiom Solutions International, Inc. and filed a preliminary Form 10 registration statement with the SEC. The filing is a key milestone toward creating a standalone company and may help clarify the assets, financial profile and strategy of both businesses. Flex Announces New Company Name and Files Form 10 Registration Statement
• Positive Sentiment: The separation is expected to be completed in the first quarter. Flex also announced that Amy B. Schwetz will become CFO of Flex’s remaining RMS and ITS segments and is expected to serve as Flex’s CFO after the transaction, while the companies disclosed post-separation board compositions. The leadership plan could support continuity through the restructuring. Flex Announces Expected CFO and Board Composition
• Neutral Sentiment: CEO Revathi Advaithi discussed the Axiom spin-off and the company’s focus on deploying power infrastructure efficiently. The interview provides additional strategic context, but the reports do not identify new financial guidance or near-term earnings changes. CNBC Interview With Flex CEO Revathi Advaithi
• Negative Sentiment: The spin-off remains subject to regulatory filings, transaction execution and separation-related costs. Investors may therefore remain cautious until the Form 10 review is complete and Flex provides more detail on the post-separation financial outlook.
• Neutral Sentiment: Articles about the FLEX satellite and its Vega-C launch concern an Earth-observation mission, not Flex Ltd. (NASDAQ: FLEX), and should have no material effect on the company’s stock.

Analyst Ratings Changes

A number of analysts have weighed in on the company. Wall Street Zen downgraded Flex from a “buy” rating to a “hold” rating in a report on Saturday. Weiss Ratings restated a “buy (b-)” rating on shares of Flex in a research report on Friday, July 17th. Robert W. Baird set a $142.00 target price on Flex in a research note on Thursday, July 30th. Zacks Research downgraded Flex from a “strong-buy” rating to a “hold” rating in a report on Tuesday, July 7th. Finally, The Goldman Sachs Group dropped their price target on Flex from $177.00 to $154.00 and set a “buy” rating on the stock in a research note on Thursday, July 30th. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $114.20.

Flex Stock Down 0.9%

The stock has a market cap of $39.66 billion, a price-to-earnings ratio of 41.56, a price-to-earnings-growth ratio of 0.58 and a beta of 1.67. The firm’s fifty day moving average price is $118.46 and its two-hundred day moving average price is $111.08. The company has a debt-to-equity ratio of 0.95, a current ratio of 1.38 and a quick ratio of 0.89.

Flex (NASDAQ:FLEX) last issued its earnings results on Friday, June 26th. The technology company reported $1.00 EPS for the quarter. Flex had a return on equity of 23.15% and a net margin of 3.32%.The company had revenue of $7.93 billion during the quarter. Sell-side analysts forecast that Flex Ltd. will post 4.27 earnings per share for the current fiscal year.

Insider Transactions at Flex

In related news, insider Michael Hartung sold 2,755 shares of the stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $120.64, for a total value of $332,363.20. Following the transaction, the insider directly owned 243,175 shares in the company, valued at $29,336,632. This trade represents a 1.12% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 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 Flex stock in a transaction on Thursday, June 18th. The shares were sold at an average price of $145.20, for a total transaction of $190,357.20. Following the completion of the sale, the chief accounting officer directly owned 37,932 shares of the company’s stock, valued at approximately $5,507,726.40. The trade was a 3.34% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 338,026 shares of company stock valued at $48,785,533. Company insiders own 0.62% of the company’s stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in FLEX. Frazier Financial Advisors LLC bought a new stake in shares of Flex during the fourth quarter worth about $28,000. Gables Capital Management Inc. bought a new position in Flex in the 4th quarter valued at about $42,000. Western Wealth Management LLC acquired a new position in Flex during the 1st quarter valued at about $65,000. Leonteq Securities AG bought a new stake in Flex during the 4th quarter worth approximately $69,000. Finally, Entrust Financial LLC bought a new stake in Flex during the 4th quarter worth approximately $73,000. 94.30% of the stock is owned by institutional investors.

About Flex

Flex Ltd. (NASDAQ:FLEX) is a global manufacturing and supply-chain solutions company that helps original equipment manufacturers design, build and manage products. Its services span product design and engineering, prototyping, manufacturing, assembly, testing, logistics, supply-chain management and aftermarket support.

The company supports customers across industries including automotive, communications, consumer, industrial, healthcare and life sciences, and cloud and data-center infrastructure.