Flex (NASDAQ:FLEX) Shares Gap Up - Here's Why

Key Points

• Flex Ltd. shares gapped up significantly, opening at $52.52 after closing at $49.77, with a last trading price of $50.08 and a volume of approximately 1.5 million shares.
• Analysts have raised their price targets for Flex, with KeyCorp and Barclays setting targets as high as $60.00, and the company now holds a consensus rating of "Moderate Buy".
• Flex reported strong quarterly earnings, beating estimates with $0.72 EPS against a consensus of $0.63 EPS, and revenue of $6.58 billion, reflecting a 4.1% year-over-year increase.

Shares of Flex Ltd. (NASDAQ:FLEX - Get Free Report) gapped up prior to trading on Tuesday . The stock had previously closed at $49.77, but opened at $52.52. Flex shares last traded at $50.08, with a volume of 1,494,685 shares trading hands.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on the company. KeyCorp upped their price target on Flex from $50.00 to $60.00 and gave the company an "overweight" rating in a research note on Wednesday, July 2nd. Bank of America increased their price target on Flex from $50.00 to $58.00 and gave the company a "buy" rating in a research note on Thursday, July 10th. Barclays increased their target price on Flex from $50.00 to $60.00 and gave the stock an "overweight" rating in a report on Friday, July 25th. Wall Street Zen raised Flex from a "buy" rating to a "strong-buy" rating in a research note on Saturday, July 26th. Finally, JPMorgan Chase & Co. raised their price objective on Flex from $44.00 to $60.00 and gave the stock an "overweight" rating in a research report on Thursday, July 17th. Seven equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $53.71.

Flex Trading Up 0.6%

The firm has a 50 day simple moving average of $49.63 and a 200 day simple moving average of $41.57. The company has a debt-to-equity ratio of 0.59, a quick ratio of 0.83 and a current ratio of 1.36. The firm has a market cap of $18.80 billion, a P/E ratio of 22.08, a P/E/G ratio of 1.67 and a beta of 1.05.

Flex (NASDAQ:FLEX - Get Free Report) last issued its quarterly earnings results on Thursday, July 24th. The technology company reported $0.72 earnings per share (EPS) for the quarter, beating 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 during the quarter, compared to the consensus estimate of $6.27 billion. During the same quarter last year, the company posted $0.51 EPS. The company's revenue for the quarter was up 4.1% on a year-over-year basis. Flex has set its FY 2026 guidance at 2.860-3.060 EPS. Q2 2026 guidance at 0.700-0.780 EPS. On average, equities research analysts predict that Flex Ltd. will post 2.33 EPS for the current fiscal year.

Insider Transactions at Flex

In related news, COO Kwang Hooi Tan sold 12,500 shares of Flex stock in a transaction on Monday, July 28th. The stock was sold at an average price of $50.25, for a total transaction of $628,125.00. Following the transaction, the chief operating officer directly owned 263,636 shares in the company, valued at approximately $13,247,709. The trade was a 4.53% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Michael P. Hartung sold 6,887 shares of Flex stock in a transaction dated Tuesday, June 17th. The shares were sold at an average price of $45.01, for a total value of $309,983.87. Following the transaction, the insider directly owned 303,718 shares in the company, valued at approximately $13,670,347.18. The trade was a 2.22% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders sold 659,186 shares of company stock valued at $28,621,302. 0.57% of the stock is currently owned by corporate insiders.

Institutional Trading of Flex

Institutional investors have recently bought and sold shares of the stock. Sowell Financial Services LLC bought a new position in shares of Flex during the 1st quarter worth $246,000. Mirae Asset Global Investments Co. Ltd. grew its holdings in Flex by 7,157.2% during the first quarter. Mirae Asset Global Investments Co. Ltd. now owns 69,016 shares of the technology company's stock worth $2,290,000 after acquiring an additional 68,065 shares during the period. Sequoia Financial Advisors LLC increased its position in shares of Flex by 7.6% in the first quarter. Sequoia Financial Advisors LLC now owns 107,713 shares of the technology company's stock valued at $3,563,000 after buying an additional 7,637 shares in the last quarter. DAVENPORT & Co LLC increased its position in shares of Flex by 20.9% in the first quarter. DAVENPORT & Co LLC now owns 6,930 shares of the technology company's stock valued at $229,000 after buying an additional 1,200 shares in the last quarter. Finally, J.Safra Asset Management Corp boosted its stake in shares of Flex by 72.2% in the first quarter. J.Safra Asset Management Corp now owns 14,697 shares of the technology company's stock worth $486,000 after acquiring an additional 6,163 shares during the last quarter. 94.30% of the stock is currently owned by institutional investors.

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.

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