Flex (NASDAQ:FLEX) Shares Gap Up - Still a Buy?

Key Points

• Flex shares opened higher, rising from a prior close of $108.32 to $111.47 before trading near $109.44.
• Flex named its planned cloud and power-infrastructure spin-off Axiom Solutions International and filed a preliminary Form 10, with the separation expected in the first quarter. The transaction remains subject to regulatory review, execution risks and separation costs.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $114.20, though some firms recently downgraded the stock or reduced their targets.

Flex Ltd. (NASDAQ:FLEX - Get Free Report) shares gapped up prior to trading on Tuesday . The stock had previously closed at $108.32, but opened at $111.47. Flex shares last traded at $109.4370, with a volume of 94,338 shares changing hands.

Trending Headlines about Flex

Here are the key news stories impacting Flex this week:

• Positive Sentiment: Flex named the planned cloud and power-infrastructure spin-off Axiom Solutions International, Inc. and filed a preliminary Form 10 registration statement with the SEC. The filing is a key milestone toward creating a standalone company and may help clarify the assets, financial profile and strategy of both businesses. Flex Announces New Company Name and Files Form 10 Registration Statement
• Positive Sentiment: The separation is expected to be completed in the first quarter. Flex also announced that Amy B. Schwetz will become CFO of Flex’s remaining RMS and ITS segments and is expected to serve as Flex’s CFO after the transaction, while the companies disclosed post-separation board compositions. The leadership plan could support continuity through the restructuring. Flex Announces Expected CFO and Board Composition
• Neutral Sentiment: CEO Revathi Advaithi discussed the Axiom spin-off and the company’s focus on deploying power infrastructure efficiently. The interview provides additional strategic context, but the reports do not identify new financial guidance or near-term earnings changes. CNBC Interview With Flex CEO Revathi Advaithi
• Negative Sentiment: The spin-off remains subject to regulatory filings, transaction execution and separation-related costs. Investors may therefore remain cautious until the Form 10 review is complete and Flex provides more detail on the post-separation financial outlook.
• Neutral Sentiment: Articles about the FLEX satellite and its Vega-C launch concern an Earth-observation mission, not Flex Ltd. NASDAQ: FLEX, and should have no material effect on the company’s stock.

Analysts Set New Price Targets

FLEX has been the subject of several recent analyst reports. Robert W. Baird set a $142.00 price objective on Flex in a research report on Thursday, July 30th. Zacks Research downgraded Flex from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, July 7th. The Goldman Sachs Group dropped their target price on shares of Flex from $177.00 to $154.00 and set a "buy" rating for the company in a report on Thursday, July 30th. Wall Street Zen lowered shares of Flex from a "buy" rating to a "hold" rating in a report on Saturday. Finally, Weiss Ratings reiterated a "buy (b-)" rating on shares of Flex in a research report on Friday, July 17th. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $114.20.

Flex Stock Performance

The company has a market cap of $39.66 billion, a price-to-earnings ratio of 41.56, a P/E/G ratio of 0.58 and a beta of 1.67. The company has a debt-to-equity ratio of 0.95, a quick ratio of 0.89 and a current ratio of 1.38. The company has a fifty day moving average of $118.46 and a two-hundred day moving average of $111.08.

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

Insiders Place Their Bets

In other Flex news, EVP David Offer sold 20,812 shares of the company's stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $144.47, for a total value of $3,006,709.64. Following the completion of the transaction, the executive vice president directly owned 97,779 shares in the company, valued at approximately $14,126,132.13. This represents a 17.55% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Michael Hartung sold 22,627 shares of the firm's stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $144.48, for a total transaction of $3,269,148.96. Following the transaction, the insider directly owned 253,199 shares of the company's stock, valued at $36,582,191.52. The trade was a 8.20% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 338,026 shares of company stock worth $48,785,533 over the last quarter. 0.62% of the stock is currently owned by corporate insiders.

Institutional Trading of Flex

Several institutional investors have recently modified their holdings of FLEX. TD Waterhouse Canada Inc. lifted its stake in shares of Flex by 7.4% in the second quarter. TD Waterhouse Canada Inc. now owns 1,449 shares of the technology company's stock worth $223,000 after acquiring an additional 100 shares during the period. JSF Financial LLC increased its position in Flex by 0.6% during the 1st quarter. JSF Financial LLC now owns 20,504 shares of the technology company's stock valued at $1,342,000 after purchasing an additional 115 shares during the period. Glenview Trust Co raised its holdings in Flex by 3.4% during the 1st quarter. Glenview Trust Co now owns 3,775 shares of the technology company's stock worth $247,000 after purchasing an additional 125 shares during the last quarter. Resonant Capital Advisors LLC lifted its position in shares of Flex by 2.1% in the 1st quarter. Resonant Capital Advisors LLC now owns 7,967 shares of the technology company's stock worth $522,000 after purchasing an additional 163 shares during the period. Finally, Bessemer Group Inc. lifted its position in shares of Flex by 7.9% in the 1st quarter. Bessemer Group Inc. now owns 2,418 shares of the technology company's stock worth $159,000 after purchasing an additional 178 shares during the period. Institutional investors own 94.30% of the company's stock.

Flex Company Profile

Flex Ltd. NASDAQ: FLEX is a global manufacturing and supply-chain solutions company that helps original equipment manufacturers design, build and manage products. Its services span product design and engineering, prototyping, manufacturing, assembly, testing, logistics, supply-chain management and aftermarket support.

The company supports customers across industries including automotive, communications, consumer, industrial, healthcare and life sciences, and cloud and data-center infrastructure.

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