Flex (NASDAQ:FLEX) Shares Gap Down – Here’s Why

Shares of Flex Ltd. (NASDAQ:FLEX) gapped down before the market opened on Wednesday . The stock had previously closed at $113.28, but opened at $100.01. Flex shares last traded at $106.4910, with a volume of 1,487,966 shares traded.

More Flex News

Here are the key news stories impacting Flex this week:

• Positive Sentiment: Quarterly results exceeded expectations. Flex reported fiscal Q1 2027 adjusted EPS of $1.00, above the roughly $0.90–$0.93 consensus, while revenue rose 20.6% year over year to $7.93 billion versus expectations of approximately $7.53 billion. Adjusted operating margin reached 6.7%. Flex Reports First Quarter Fiscal 2027 Results
• Positive Sentiment: AI infrastructure is supporting growth. Management highlighted strong demand for data-center power, cooling and related infrastructure solutions. Growth in the Cloud and Power Infrastructure segment is helping expand margins and strengthening Flex’s position in the AI supply chain. FLEX Q1 Earnings Call Highlights AI Infrastructure Growth
• Positive Sentiment: Fiscal 2027 guidance was raised or set above consensus. Flex forecast second-quarter EPS of $1.00–$1.07 and revenue of $8.0–$8.3 billion, ahead of analyst estimates. Full-year revenue guidance of $33.7–$35.2 billion also exceeds consensus, while EPS guidance is $4.42–$4.74. Flex Forecasts FY 2027 Revenue
• Positive Sentiment: Planned separation could unlock value. Flex announced leadership teams for the planned first-quarter 2027 spin-off of its Cloud and Power Infrastructure business into an independent public company, SpinCo. The transaction may allow investors to value the faster-growing infrastructure operations separately. Flex Announces Spin-Off Leadership Teams
• Neutral Sentiment: Some coverage describes an earlier earnings-related selloff despite the results beat, indicating that investors may have been concerned about valuation, expectations or the details of the outlook before the subsequent recovery. Flex Declines on Earnings
• Neutral Sentiment: An article about Flex raising $70 million in business-banking funding appears to concern a separate fintech company named Flex, not Flex Ltd., and is therefore unlikely to affect FLEX shares. Business Banking Gets a Founder-First Push

Analyst Upgrades and Downgrades

FLEX has been the topic of a number of research reports. Weiss Ratings reiterated a “buy (b-)” rating on shares of Flex in a research report on Friday, July 17th. Raymond James Financial set a $170.00 price target on shares of Flex and gave the company an “outperform” rating in a research note on Wednesday. KeyCorp upped their price objective on shares of Flex from $75.00 to $180.00 and gave the company an “overweight” rating in a report on Thursday, May 7th. JPMorgan Chase & Co. increased their price objective on shares of Flex from $75.00 to $84.00 and gave the stock an “overweight” rating in a research report on Thursday, April 16th. Finally, The Goldman Sachs Group reduced their target price on Flex from $177.00 to $154.00 and set a “buy” rating for the company in a research note on Thursday. One 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 stock. According to data from MarketBeat, Flex has an average rating of “Moderate Buy” and a consensus target price of $114.20.

Flex Trading Up 8.6%

The firm’s 50-day moving average is $139.88 and its 200-day moving average is $99.62. The company has a current ratio of 1.38, a quick ratio of 0.87 and a debt-to-equity ratio of 0.95. The firm has a market cap of $41.00 billion, a price-to-earnings ratio of 43.21, a P/E/G ratio of 0.54 and a beta of 1.64.

Flex (NASDAQ:FLEX) last released its quarterly earnings data on Wednesday, July 29th. The technology company reported $1.00 earnings per share for the quarter, topping the consensus estimate of $0.90 by $0.10. Flex had a net margin of 3.32% and a return on equity of 23.15%. The firm had revenue of $7.93 billion for the quarter, compared to the consensus estimate of $7.53 billion. During the same quarter in the prior year, the company posted $0.72 earnings per share. The business’s revenue was up 20.6% on a year-over-year basis. Flex has set its Q2 2027 guidance at 1.000-1.070 EPS and its FY 2027 guidance at 4.420-4.740 EPS. As a group, sell-side analysts anticipate that Flex Ltd. will post 4.18 EPS for the current fiscal year.

Insider Buying and Selling

In other Flex news, CAO Daniel Wendler sold 1,311 shares of the business’s stock in a transaction that occurred on Thursday, June 18th. The stock was 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 sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP David Scott Offer sold 6,657 shares of the stock in a transaction that occurred on Thursday, June 18th. The stock was sold at an average price of $145.23, for a total value of $966,796.11. Following the completion of the sale, the executive vice president directly owned 91,122 shares of the company’s stock, valued at approximately $13,233,648.06. This trade represents a 6.81% decrease in their ownership of the stock. 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. Insiders have sold a total of 769,195 shares of company stock worth $110,116,823 over the last ninety days. Insiders own 0.62% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Insight Wealth Strategies LLC bought a new stake in Flex during the second quarter worth $4,320,000. Bay Colony Advisory Group Inc d b a Bay Colony Advisors bought a new position in Flex during the 2nd quarter valued at $276,000. Kraft Davis & Associates LLC bought a new position in Flex during the 2nd quarter valued at $308,000. Focus Financial Network Inc. purchased a new position in Flex during the 2nd quarter worth $255,000. Finally, Arista Wealth Management LLC bought a new stake in shares of Flex in the 2nd quarter worth $736,000. Hedge funds and other institutional investors own 94.30% of the company’s stock.

About Flex

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.