Flex (NASDAQ:FLEX) Shares Down 8.9% - Here's What Happened

Key Points

• Flex shares fell 8.9% in mid-day trading, dropping to about $146.85 after closing at $161.28 the prior session, on volume slightly below average.
• Despite the pullback, several analysts recently raised price targets and ratings on Flex, including Goldman Sachs, Barclays, KeyCorp, and Zacks; the consensus rating is now Moderate Buy.
• Recent filings showed insider selling by both the COO and CEO, though the company said the sales were tied to tax withholding and a pre-arranged trading plan. Institutional ownership remains high at 94.3%.

Shares of Flex Ltd. (NASDAQ:FLEX - Get Free Report) fell 8.9% during mid-day trading on Friday . The stock traded as low as $146.89 and last traded at $146.85. Approximately 4,470,077 shares traded hands during trading, a decline of 14% from the average session volume of 5,227,152 shares. The stock had previously closed at $161.28.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on FLEX. The Goldman Sachs Group increased their target price on Flex from $84.00 to $177.00 and gave the stock a "buy" rating in a research note on Thursday, May 7th. Barclays upped their price objective on Flex from $174.00 to $203.00 and gave the company an "overweight" rating in a report on Thursday, June 4th. Zacks Research raised Flex from a "hold" rating to a "strong-buy" rating in a report on Wednesday, May 13th. KeyCorp boosted their target price 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. Finally, JPMorgan Chase & Co. raised their price target 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. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and two have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $115.70.

Flex Trading Down 8.5%

The company has a market capitalization of $54.09 billion, a price-to-earnings ratio of 63.36, a P/E/G ratio of 0.79 and a beta of 1.64. The company has a current ratio of 1.36, a quick ratio of 0.87 and a debt-to-equity ratio of 0.73. The business's 50 day moving average price is $129.83 and its two-hundred day moving average price is $87.89.

Flex (NASDAQ:FLEX - Get Free Report) last issued its quarterly earnings data on Tuesday, March 31st. The technology company reported $0.93 EPS for the quarter. The business had revenue of $7.48 billion during the quarter. Flex had a net margin of 3.15% and a return on equity of 22.12%. On average, equities analysts predict that Flex Ltd. will post 4.17 earnings per share for the current fiscal year.

Insider Buying and Selling at Flex

In other news, COO Kwang Hooi Tan sold 8,981 shares of the business's stock in a transaction dated Thursday, June 18th. The stock was sold at an average price of $145.19, for a total transaction of $1,303,951.39. Following the sale, the chief operating officer directly owned 248,546 shares in the company, valued at approximately $36,086,393.74. The trade was a 3.49% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. 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 completion of the transaction, the chief executive officer directly owned 584,278 shares of the company's stock, valued at $84,825,480.04. This represents a 6.29% decrease in their position. The SEC filing for this sale provides additional information. 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 have sold a total of 769,195 shares of company stock worth $110,116,823 over the last three months. 0.57% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Flex

A number of institutional investors have recently added to or reduced their stakes in FLEX. Brighton Jones LLC acquired a new position in shares of Flex during the fourth quarter worth $260,000. Goldman Sachs Group Inc. increased its holdings in Flex by 19.8% in the first quarter. Goldman Sachs Group Inc. now owns 1,279,137 shares of the technology company's stock valued at $42,314,000 after purchasing an additional 211,046 shares during the period. Empowered Funds LLC bought a new position in Flex during the 1st quarter worth $397,000. EverSource Wealth Advisors LLC lifted its holdings in Flex by 63.8% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 2,646 shares of the technology company's stock worth $132,000 after buying an additional 1,031 shares during the period. Finally, First Trust Advisors LP lifted its holdings in Flex by 92.4% during the 2nd quarter. First Trust Advisors LP now owns 62,078 shares of the technology company's stock worth $3,099,000 after buying an additional 29,821 shares during the period. 94.30% of the stock is owned by institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.