Crossmark Global Holdings Inc. Sells 32,561 Shares of Flex Ltd. $FLEX

Key Points

• Crossmark Global Holdings reduced its Flex stake by 28.4% in the third quarter, selling 32,561 shares and retaining 82,192 shares valued at approximately $9.04 million. Institutional investors and hedge funds collectively own 94.3% of Flex.
• Flex is pursuing a planned first-quarter 2027 spin-off of its Axiom business after acquiring EPC Power for $4.4 billion, but the transaction adds execution and financial risks, including a $2 billion preferred investment obligation and $1.1 billion in bridge financing.
• Flex shares opened at $76.69, down 11.1%, amid weakness in AI and data-center infrastructure stocks. Analysts maintain a “Moderate Buy” consensus with an average price target of $119.67, despite several recent target and rating reductions.

Crossmark Global Holdings Inc. cut its stake in shares of Flex Ltd. (NASDAQ:FLEX - Free Report) by 28.4% during the third quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The firm owned 82,192 shares of the technology company's stock after selling 32,561 shares during the quarter. Crossmark Global Holdings Inc.'s holdings in Flex were worth $9,040,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also made changes to their positions in FLEX. KBC Group NV lifted its stake in shares of Flex by 541.5% in the first quarter. KBC Group NV now owns 1,965,811 shares of the technology company's stock valued at $128,682,000 after purchasing an additional 1,659,384 shares during the period. Sei Investments Co. boosted its holdings in Flex by 52.2% during the first quarter. Sei Investments Co. now owns 2,230,622 shares of the technology company's stock worth $146,016,000 after buying an additional 764,558 shares in the last quarter. Hsbc Holdings PLC grew its position in Flex by 446.0% during the first quarter. Hsbc Holdings PLC now owns 290,062 shares of the technology company's stock worth $18,905,000 after buying an additional 236,941 shares during the period. Amundi grew its position in Flex by 15.5% during the first quarter. Amundi now owns 1,494,418 shares of the technology company's stock worth $97,825,000 after buying an additional 200,553 shares during the period. Finally, SEB Asset Management AB purchased a new position in Flex in the first quarter valued at about $11,411,000. 94.30% of the stock is owned by institutional investors and hedge funds.

Flex News Roundup

Here are the key news stories impacting Flex this week:

• Neutral Sentiment: The EPC Power acquisition expands Flex’s position in power infrastructure and is intended to be placed within Axiom before the planned first-quarter 2027 spin-off. However, integrating the $4.4 billion acquisition and separating the business adds significant execution complexity. Flex slides as investors digest Axiom spin-off financing risks and broader AI infrastructure weakness
• Negative Sentiment: Flex disclosed a $2.0 billion preferred investment in Axiom that must be redeemed if the spin-off is not completed by December 31, 2027. Investors may view that contingent obligation as a financial risk if the separation is delayed. Flex SEC filing
• Negative Sentiment: Flex borrowed $1.1 billion under a bridge credit facility to help fund the EPC Power transaction. The added borrowing increases leverage and may heighten concerns about financing costs and the company’s balance sheet during the spin-off process. Flex 8-K filing summary
• Negative Sentiment: Broader weakness in AI and data-center infrastructure shares is likely amplifying pressure on Flex as investors reassess the cost of financing large infrastructure build-outs. AP report on AI infrastructure concerns
• Negative Sentiment: Reported insider activity shows 138 open-market sales and no purchases over the past six months, including sales by senior executives. While such transactions may be scheduled, the absence of insider buying can weigh on investor sentiment.

Insider Buying and Selling at Flex

In other news, insider Michael P. Hartung sold 2,755 shares of the company's stock in a transaction on Tuesday, August 18th. The stock was sold at an average price of $120.64, for a total transaction of $332,363.20. Following the completion of the sale, the insider directly owned 243,175 shares in the company, valued at $29,336,632. This represents a 1.12% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 0.62% of the stock is currently owned by company insiders.

Flex Stock Down 11.1%

Shares of NASDAQ FLEX opened at $76.69 on Friday. Flex Ltd. has a 12-month low of $53.07 and a 12-month high of $166.86. The company has a market capitalization of $28.33 billion, a PE ratio of 26.95, a price-to-earnings-growth ratio of 0.44 and a beta of 1.67. The company has a debt-to-equity ratio of 0.95, a current ratio of 1.38 and a quick ratio of 0.89. The firm's 50-day moving average is $109.69 and its two-hundred day moving average is $119.58.

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

Analyst Ratings Changes

A number of equities research analysts have recently issued reports on the stock. Barclays reduced their price target on shares of Flex from $203.00 to $144.00 and set an "overweight" rating for the company in a research report on Thursday, July 30th. Zacks Research cut Flex from a "strong-buy" rating to a "hold" rating in a report on Tuesday, July 7th. Freedom Capital raised Flex from a "hold" rating to a "strong-buy" rating in a research note on Thursday, July 16th. Weiss Ratings cut Flex from a "buy (b-)" rating to a "hold (c+)" rating in a report on Thursday, September 17th. Finally, The Goldman Sachs Group reduced their price objective on Flex from $177.00 to $154.00 and set a "buy" rating for the company in a report on Thursday, July 30th. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, Flex has a consensus rating of "Moderate Buy" and a consensus price target of $119.67.

About Flex

Flex Ltd. NASDAQ: FLEX is a global manufacturing and supply chain solutions provider. The company helps original equipment manufacturers design, engineer, manufacture, distribute and service products across their lifecycles.

Flex serves customers in industries including automotive, communications, consumer electronics, health care, industrial, lifestyle and cloud infrastructure. Its capabilities include product design and engineering, printed circuit board assembly, systems integration, supply chain management, logistics, and aftermarket services.

The company was founded in 1969 as Flextronics and later adopted the name Flex.

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