Entropy Technologies LP Cuts Stake in Flex Ltd. $FLEX

Key Points

• Entropy Technologies LP cut its Flex stake by 87.8% in the first quarter, selling 77,178 shares and retaining 10,705 shares valued at approximately $701,000. Institutional investors still own 94.3% of Flex’s stock.
• Flex reported fiscal Q1 2027 adjusted EPS of $1.00 and revenue of $7.93 billion, beating analyst expectations, while raising its fiscal-year revenue and earnings guidance. Analysts maintain a “Moderate Buy” consensus with an average price target of $124.70.
• Despite the strong results and planned 2027 Cloud and Power Infrastructure spin-off, Flex shares fell 9.1% as investors appeared to take profits and question whether the positive outlook was already priced in.

Entropy Technologies LP decreased its stake in Flex Ltd. (NASDAQ:FLEX - Free Report) by 87.8% in the 1st quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 10,705 shares of the technology company's stock after selling 77,178 shares during the period. Entropy Technologies LP's holdings in Flex were worth $701,000 as of its most recent SEC filing.

Several other hedge funds have also modified their holdings of FLEX. Frazier Financial Advisors LLC acquired a new stake in Flex in the fourth quarter valued at approximately $28,000. Parkside Financial Bank & Trust boosted its stake in shares of Flex by 57.0% in the fourth quarter. Parkside Financial Bank & Trust now owns 457 shares of the technology company's stock valued at $28,000 after purchasing an additional 166 shares during the period. Gables Capital Management Inc. acquired a new stake in Flex during the 4th quarter valued at $42,000. Caitong International Asset Management Co. Ltd increased its stake in Flex by 6,318.2% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 706 shares of the technology company's stock worth $43,000 after buying an additional 695 shares during the period. Finally, CENTRAL TRUST Co increased its stake in Flex by 58.1% during the 4th quarter. CENTRAL TRUST Co now owns 797 shares of the technology company's stock worth $48,000 after buying an additional 293 shares during the period. 94.30% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

FLEX has been the subject of a number of analyst reports. KeyCorp upped their price objective on shares of Flex from $75.00 to $180.00 and gave the company an "overweight" rating in a research report on Thursday, May 7th. Stifel Nicolaus lifted their target price on Flex from $75.00 to $95.00 and gave the stock a "buy" rating in a research report on Monday, April 20th. The Goldman Sachs Group boosted their price target on Flex from $84.00 to $177.00 and gave the stock a "buy" rating in a research note on Thursday, May 7th. Robert W. Baird set a $165.00 price target on Flex in a report on Thursday, May 7th. Finally, Raymond James Financial set a $170.00 price objective on Flex and gave the company an "outperform" rating in a research note on Wednesday. One equities research 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 company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $124.70.

Trending Headlines about Flex

Here are the key news stories impacting Flex this week:

• Positive Sentiment: Flex reported fiscal Q1 2027 adjusted earnings of $1.00 per share, above the roughly $0.90-$0.93 analyst consensus, while revenue reached $7.93 billion versus expectations near $7.53 billion. Revenue increased 20.6% year over year, and adjusted operating margin reached 6.7%. Flex fiscal Q1 results
• Positive Sentiment: Management raised fiscal 2027 revenue guidance to $33.7 billion-$35.2 billion, above the $33.3 billion consensus, and set second-quarter revenue guidance of $8.0 billion-$8.3 billion versus expectations of $7.8 billion. Q2 EPS guidance of $1.00-$1.07 also exceeds the $0.98 consensus. Flex earnings beat and guidance
• Positive Sentiment: Growth accelerated in Cloud and Power Infrastructure, supporting the planned separation of that business into an independently traded company, SpinCo, expected in the first calendar quarter of 2027. Flex SpinCo leadership announcement
• Neutral Sentiment: Flex announced leadership teams for both the remaining Flex business and SpinCo, providing additional detail on preparations for the planned separation but no immediate financial impact. Flex Q1 2027 earnings call transcript
• Negative Sentiment: The stock’s decline, on volume well above average, indicates that the strong results and outlook may already have been priced in. With shares trading at a relatively elevated earnings multiple, investors may be taking profits because the full-year EPS guidance range of $4.42-$4.74 only modestly exceeds or surrounds current consensus expectations.

Flex Trading Down 9.1%

NASDAQ FLEX opened at $103.02 on Thursday. Flex Ltd. has a 12 month low of $47.83 and a 12 month high of $166.86. The company has a debt-to-equity ratio of 0.73, a current ratio of 1.36 and a quick ratio of 0.87. The company has a market capitalization of $37.74 billion, a price-to-earnings ratio of 44.21, a price-to-earnings-growth ratio of 0.59 and a beta of 1.64. The company's fifty day moving average price is $140.27 and its two-hundred day moving average price is $99.27.

Flex (NASDAQ:FLEX - Get Free Report) last announced 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. The company had revenue of $7.93 billion during the quarter, compared to analyst estimates of $7.53 billion. Flex had a net margin of 3.15% and a return on equity of 22.12%. The firm's revenue for the quarter was up 20.6% compared to the same quarter last year. During the same period last year, the business earned $0.72 EPS. 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, research analysts predict that Flex Ltd. will post 4.18 earnings per share for the current fiscal year.

Insider Transactions at Flex

In related news, EVP David Scott Offer sold 6,657 shares of the business's stock in a transaction dated 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 $13,233,648.06. The trade was a 6.81% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Revathi Advaithi sold 39,188 shares of the company's stock in a transaction that occurred on Thursday, June 18th. The shares were sold at an average price of $145.18, for a total value of $5,689,313.84. Following the sale, the chief executive officer owned 584,278 shares in the company, valued at $84,825,480.04. The trade was a 6.29% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 769,195 shares of company stock valued at $110,116,823 over the last 90 days. Corporate insiders own 0.62% of the company's stock.

Flex Profile

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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