AXQ Capital LP Takes Position in Flex Ltd. $FLEX

Key Points

• AXQ Capital LP purchased 30,818 Flex shares worth approximately $5.0 million in the second quarter, making Flex its 19th-largest holding and about 0.5% of its portfolio.
• Institutional investors own 94.3% of Flex, with several major funds increasing their stakes. Meanwhile, insiders sold shares primarily to cover tax obligations tied to equity awards.
• Flex agreed to acquire EPC Power for $4.4 billion, strengthening its data-center and power-infrastructure businesses while adding execution, integration and capital-allocation risks. Analysts maintain a generally positive view, with a consensus rating of “Moderate Buy.”

AXQ Capital LP purchased a new position in Flex Ltd. (NASDAQ:FLEX - Free Report) in the second quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 30,818 shares of the technology company's stock, valued at approximately $4,995,000. Flex comprises approximately 0.5% of AXQ Capital LP's holdings, making the stock its 19th biggest position.

A number of other hedge funds have also bought and sold shares of FLEX. Norges Bank bought a new position in Flex during the 4th quarter valued at about $319,756,000. State Street Corp raised its holdings in shares of Flex by 38.0% in the second quarter. State Street Corp now owns 12,259,554 shares of the technology company's stock worth $611,997,000 after buying an additional 3,377,669 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its holdings in shares of Flex by 694,916.3% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,641,062 shares of the technology company's stock worth $159,573,000 after buying an additional 2,640,682 shares during the period. Polar Capital Holdings Plc lifted its stake 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 worth $223,140,000 after acquiring an additional 2,165,780 shares during the last quarter. Finally, KBC Group NV boosted its holdings in Flex by 541.5% during the 1st quarter. KBC Group NV now owns 1,965,811 shares of the technology company's stock valued at $128,682,000 after acquiring an additional 1,659,384 shares during the period. Institutional investors own 94.30% of the company's stock.

Insider Buying and Selling at Flex

In other Flex news, insider Michael Hartung sold 22,627 shares of the company's stock in a transaction on Wednesday, June 17th. The stock was sold at an average price of $144.48, for a total transaction of $3,269,148.96. Following the completion of the sale, the insider owned 253,199 shares in the company, valued at $36,582,191.52. This represents a 8.20% decrease in their ownership of the stock. The transaction was disclosed in a 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, COO Kwang Tan sold 26,657 shares of the stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $144.48, for a total value of $3,851,403.36. Following the sale, the chief operating officer directly owned 257,527 shares in the company, valued at $37,207,500.96. This trade represents a 9.38% 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. Insiders have sold a total of 426,938 shares of company stock valued at $61,941,083 in the last ninety days. Company insiders own 0.62% of the company's stock.

Key Stories Impacting Flex

Here are the key news stories impacting Flex this week:

• Positive Sentiment: Flex agreed to acquire EPC Power, a designer and manufacturer of software-defined power-conversion systems used in data centers, utility-scale energy storage and microgrids. The transaction adds grid-forming technology and positions Flex to benefit from rising AI-related electricity demand and the transition toward 800-volt data-center architectures. Flex to Acquire EPC Power, Adding Leading Power Conversion Capabilities for AI Data Centers and Grid Applications
• Positive Sentiment: The acquisition is expected to strengthen Flex’s Cloud and Power Infrastructure business and broaden its participation in the AI infrastructure spending cycle. Management plans to incorporate EPC Power into Flex’s upcoming spin-off, potentially creating a more focused power-infrastructure business for investors. Flex Buys EPC Power in $4.4B Deal, Plans to Fold Into Upcoming Spin Off
• Neutral Sentiment: The $4.4 billion price tag introduces execution, integration and capital-allocation risks. Investors will likely assess the purchase price, financing and whether EPC Power’s growth can justify the investment, particularly as Flex trades well above its 200-day average and has elevated earnings expectations.
• Neutral Sentiment: Flex also announced participation in the Goldman Sachs Communacopia + Technology Conference, which could provide additional details on the acquisition and planned spin-off but is not itself a material fundamental catalyst. Flex to Participate in Upcoming Investor Conference
• Neutral Sentiment: A trade-secret lawsuit involving Flex moved closer to resolution, but the available report did not disclose a settlement or financial impact. Flex trade secret suit inches toward resolution

Flex Price Performance

FLEX opened at $107.89 on Friday. Flex Ltd. has a 12-month low of $53.07 and a 12-month high of $166.86. The company has a current ratio of 1.38, a quick ratio of 0.89 and a debt-to-equity ratio of 0.95. The business's fifty day simple moving average is $123.58 and its 200-day simple moving average is $108.80. The company has a market capitalization of $39.85 billion, a price-to-earnings ratio of 41.66, a PEG ratio of 0.53 and a beta of 1.67.

Flex (NASDAQ:FLEX - Get Free Report) last released its quarterly earnings data on Friday, June 26th. The technology company reported $1.00 earnings per share for the quarter. The firm had revenue of $7.93 billion during the quarter. Flex had a return on equity of 23.15% and a net margin of 3.32%. On average, equities research analysts anticipate that Flex Ltd. will post 4.27 earnings per share for the current fiscal year.

Wall Street Analyst Weigh In

A number of research firms have weighed in on FLEX. KeyCorp increased their target price on Flex from $75.00 to $180.00 and gave the stock an "overweight" rating in a research note on Thursday, May 7th. Barclays cut their price target on shares of Flex from $203.00 to $144.00 and set an "overweight" rating on the stock in a report on Thursday, July 30th. Weiss Ratings reaffirmed a "buy (b-)" rating on shares of Flex in a research note on Friday, July 17th. Freedom Capital upgraded shares of Flex from a "hold" rating to a "strong-buy" rating in a report on Thursday, July 16th. Finally, Raymond James Financial set a $170.00 price objective on shares of Flex and gave the company an "outperform" rating in a research report on Wednesday, July 29th. One analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat, Flex presently has an average rating of "Moderate Buy" and a consensus target price of $114.20.

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.

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