Flex (NASDAQ:FLEX) Stock Jumps 11.3% – Here’s Why

Flex Ltd. (NASDAQ:FLEX) shares shot up 11.3% during mid-day trading on Monday. The company traded as high as $76.69 and last traded at $77.67. Approximately 616,971 shares were traded during mid-day trading, a decline of 87% from the average session volume of 4,912,272 shares. The stock had previously closed at $69.78.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on FLEX. Freedom Capital upgraded shares of Flex from a “hold” rating to a “strong-buy” rating in a research report on Thursday, July 16th. Robert W. Baird lowered their target price on shares of Flex from $142.00 to $135.00 in a report on Monday, October 19th. The Goldman Sachs Group reduced their price objective on shares of Flex from $154.00 to $145.00 in a research report on Friday, October 16th. Barclays decreased their price objective on shares of Flex from $144.00 to $128.00 and set an “overweight” rating for the company in a research note on Thursday, October 29th. Finally, JPMorgan Chase & Co. decreased their price objective on shares of Flex from $175.00 to $160.00 and set an “overweight” rating for the company in a research note on Thursday, July 30th. Two investment analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Buy” and an average target price of $131.78.

Flex Stock Performance

The firm has a market cap of $29.16 billion, a PE ratio of 28.51, a price-to-earnings-growth ratio of 0.32 and a beta of 1.80. The company has a quick ratio of 0.85, a current ratio of 1.34 and a debt-to-equity ratio of 0.90. The business has a 50 day simple moving average of $102.35 and a two-hundred day simple moving average of $103.15.

Flex (NASDAQ:FLEX) last posted its quarterly earnings results on Wednesday, October 28th. The technology company reported $1.18 EPS for the quarter, topping analysts’ consensus estimates of $1.06 by $0.12. The firm had revenue of $8.49 billion for the quarter, compared to analysts’ expectations of $8.17 billion. Flex had a net margin of 3.35% and a return on equity of 24.93%. The business’s revenue for the quarter was up 24.8% on a year-over-year basis. During the same period in the prior year, the business posted $0.79 earnings per share. As a group, equities research analysts forecast that Flex Ltd. will post 4.52 earnings per share for the current fiscal year.

Insider Buying and Selling at Flex

In other news, insider Michael P. Hartung sold 2,755 shares of Flex stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $120.64, for a total transaction of $332,363.20. Following the completion of the sale, the insider owned 243,175 shares of the company’s stock, valued at approximately $29,336,632. The trade was a 1.12% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Corporate insiders own 0.62% of the company’s stock.

Institutional Trading of Flex

Institutional investors and hedge funds have recently made changes to their positions in the company. Phoenix Financial Ltd. bought a new stake in shares of Flex in the 3rd quarter valued at about $502,000. Allworth Financial LP raised its holdings in Flex by 14.2% in the third quarter. Allworth Financial LP now owns 12,151 shares of the technology company’s stock worth $1,336,000 after purchasing an additional 1,508 shares in the last quarter. Fisher Asset Management LLC lifted its position in shares of Flex by 14.3% during the third quarter. Fisher Asset Management LLC now owns 2,660 shares of the technology company’s stock valued at $293,000 after buying an additional 333 shares during the last quarter. Russell Investments Group Ltd. lifted its position in shares of Flex by 21.7% during the third quarter. Russell Investments Group Ltd. now owns 495,121 shares of the technology company’s stock valued at $54,508,000 after buying an additional 88,177 shares during the last quarter. Finally, Nan Fung Trinity HK Ltd. purchased a new stake in shares of Flex during the third quarter valued at about $16,191,000. 94.30% of the stock is currently owned by institutional investors.

Flex Company Profile

Flex Ltd. is a global manufacturing and supply-chain services company that works with businesses to design, engineer, manufacture and support products. Its services include product development, sourcing, production, logistics and after-market support.

The company serves a range of industries, including automotive, healthcare, industrial, lifestyle and communications, as well as cloud and data-center markets. Its work spans products and systems such as medical devices, vehicle components, industrial equipment and technology infrastructure.

Founded in California in 1969 as Flextronics, the company adopted the name Flex in 2016.