Simcoe Capital Management LLC Lowers Stake in Flex Ltd. $FLEX

Key Points

• Simcoe Capital Management LLC reduced its stake in Flex Ltd. by 13.4% in Q1, now holding approximately 1,090,280 shares valued at $36 million, which represents 6.5% of its investment portfolio.
• Flex Ltd. reported better-than-expected earnings of $0.72 per share and revenue of $6.58 billion for the most recent quarter, surpassing analyst estimates.
• The stock has received a mix of ratings from analysts, with Goldman Sachs maintaining a "buy" rating and average target price set at $53.71, indicating positive sentiment towards the company's performance.

Simcoe Capital Management LLC reduced its stake in shares of Flex Ltd. (NASDAQ:FLEX - Free Report) by 13.4% in the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 1,090,280 shares of the technology company's stock after selling 168,403 shares during the period. Flex accounts for approximately 6.5% of Simcoe Capital Management LLC's investment portfolio, making the stock its 7th biggest position. Simcoe Capital Management LLC owned approximately 0.28% of Flex worth $36,066,000 as of its most recent SEC filing.

Several other large investors have also bought and sold shares of FLEX. Invesco Ltd. raised its position in Flex by 55.0% during the 1st quarter. Invesco Ltd. now owns 8,363,106 shares of the technology company's stock worth $276,652,000 after purchasing an additional 2,968,285 shares during the last quarter. Pacer Advisors Inc. grew its stake in shares of Flex by 3,794.6% in the 1st quarter. Pacer Advisors Inc. now owns 2,900,133 shares of the technology company's stock valued at $95,936,000 after buying an additional 2,825,667 shares during the period. Northern Trust Corp grew its stake in shares of Flex by 89.1% in the 4th quarter. Northern Trust Corp now owns 2,499,749 shares of the technology company's stock valued at $95,965,000 after buying an additional 1,177,923 shares during the period. Wellington Management Group LLP grew its stake in shares of Flex by 4.8% in the 1st quarter. Wellington Management Group LLP now owns 21,742,194 shares of the technology company's stock valued at $719,232,000 after buying an additional 996,276 shares during the period. Finally, LMR Partners LLP acquired a new stake in shares of Flex in the 4th quarter valued at about $36,470,000. 94.30% of the stock is owned by institutional investors.

Flex Stock Performance

Shares of NASDAQ FLEX traded down $1.14 during midday trading on Friday, reaching $53.62. The company's stock had a trading volume of 3,153,735 shares, compared to its average volume of 3,555,296. Flex Ltd. has a 12-month low of $25.11 and a 12-month high of $54.83. The firm has a 50 day moving average price of $50.97 and a 200-day moving average price of $42.16. The stock has a market capitalization of $20.13 billion, a P/E ratio of 23.52, a PEG ratio of 1.82 and a beta of 1.12. The company has a debt-to-equity ratio of 0.59, a current ratio of 1.36 and a quick ratio of 0.83.

Flex (NASDAQ:FLEX - Get Free Report) last announced its earnings results on Thursday, July 24th. The technology company reported $0.72 earnings per share for the quarter, topping analysts' consensus estimates of $0.63 by $0.09. Flex had a return on equity of 20.25% and a net margin of 3.42%.The firm had revenue of $6.58 billion for the quarter, compared to the consensus estimate of $6.27 billion. During the same quarter in the previous year, the business earned $0.51 EPS. The company's revenue was up 4.1% compared to the same quarter last year. Flex has set its FY 2026 guidance at 2.860-3.060 EPS. Q2 2026 guidance at 0.700-0.780 EPS. As a group, equities analysts predict that Flex Ltd. will post 2.33 earnings per share for the current year.

Analyst Upgrades and Downgrades

FLEX has been the subject of several research reports. Wall Street Zen upgraded Flex from a "buy" rating to a "strong-buy" rating in a research note on Saturday, July 26th. Bank of America raised their price target on shares of Flex from $50.00 to $58.00 and gave the company a "buy" rating in a research report on Thursday, July 10th. The Goldman Sachs Group reaffirmed a "buy" rating on shares of Flex in a research report on Friday, July 11th. Stifel Nicolaus raised their price target on shares of Flex from $45.00 to $52.00 and gave the company a "buy" rating in a research report on Friday, July 25th. Finally, KeyCorp raised their price target on shares of Flex from $50.00 to $60.00 and gave the company an "overweight" rating in a research report on Wednesday, July 2nd. Seven equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $53.71.

Insiders Place Their Bets

In other news, CEO Revathi Advaithi sold 181,028 shares of the business's stock in a transaction that occurred on Thursday, June 5th. The stock was sold at an average price of $42.91, for a total value of $7,767,911.48. Following the transaction, the chief executive officer owned 1,463,695 shares in the company, valued at $62,807,152.45. The trade was a 11.01% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP David Scott Offer sold 35,394 shares of the business's stock in a transaction that occurred on Wednesday, June 4th. The stock was sold at an average price of $42.87, for a total value of $1,517,340.78. Following the completion of the transaction, the executive vice president owned 140,013 shares in the company, valued at $6,002,357.31. The trade was a 20.18% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 681,706 shares of company stock worth $29,778,944 over the last 90 days. 0.57% of the stock is currently owned by corporate insiders.

About Flex

Flex Ltd. provides technology, supply chain, and manufacturing solutions in Asia, the Americas, and Europe. It operates through three segments: Flex Agility Solutions (FAS), Flex Reliability Solutions (FRS), and Nextracker. The FAS segment offers flexible supply and manufacturing system comprising communications, enterprise and cloud solution, which includes data, edge, and communications infrastructure; lifestyle solution including appliances, consumer packaging, floorcare, micro mobility, and audio; and consumer devices, such as mobile and high velocity consumer devices.