Flex (NASDAQ:FLEX) Shares Up 11.3% - Here's Why

Key Points

• Flex shares climbed 11.3% in Monday’s mid-day trading, reaching $77.67, while trading volume was about 87% below its average.
• In its latest quarter, Flex reported EPS of $1.18 versus the $1.06 consensus estimate and revenue of $8.49 billion, up 24.8% year over year.
• Analysts collectively rate the stock a Buy, with a consensus price target of $131.78; recent rating changes included upgrades as well as lower price targets.

Flex Ltd. (NASDAQ:FLEX - Get Free Report) rose 11.3% during mid-day trading on Monday. The company traded as high as $76.69 and last traded at $77.67. Approximately 616,971 shares traded hands during trading, a decline of 87% from the average daily volume of 4,912,272 shares. The stock had previously closed at $69.78.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on FLEX shares. Bank of America dropped their price objective on shares of Flex from $180.00 to $150.00 and set a "buy" rating on the stock in a research note on Tuesday, October 27th. Zacks Research raised Flex from a "hold" rating to a "strong-buy" rating in a research report on Monday, November 2nd. Freedom Capital upgraded Flex from a "hold" rating to a "strong-buy" rating in a research note on Thursday, July 16th. JPMorgan Chase & Co. reduced their price objective on Flex from $175.00 to $160.00 and set an "overweight" rating for the company in a research report on Thursday, July 30th. Finally, Barclays lowered their price objective on Flex from $144.00 to $128.00 and set an "overweight" rating for the company in a research note on Thursday, October 29th. Two research analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat.com, Flex presently has an average rating of "Buy" and a consensus price target of $131.78.

Flex Stock Up 13.1%

The company has a market cap of $29.16 billion, a P/E ratio of 28.51, a P/E/G ratio of 0.32 and a beta of 1.80. The company's 50-day moving average is $102.35 and its two-hundred day moving average is $103.15. The company has a debt-to-equity ratio of 0.90, a current ratio of 1.34 and a quick ratio of 0.85.

Flex (NASDAQ:FLEX - Get Free Report) last released its quarterly earnings data on Wednesday, October 28th. The technology company reported $1.18 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.06 by $0.12. The business had revenue of $8.49 billion for the quarter, compared to analysts' expectations of $8.17 billion. Flex had a return on equity of 24.93% and a net margin of 3.35%. The firm's quarterly revenue was up 24.8% on a year-over-year basis. During the same period in the prior year, the firm posted $0.79 EPS. As a group, equities analysts predict that Flex Ltd. will post 4.52 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Flex news, insider Michael P. Hartung sold 2,755 shares of Flex stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $120.64, for a total value of $332,363.20. Following the completion of the sale, the insider owned 243,175 shares of the company's stock, valued at approximately $29,336,632. The trade was a 1.12% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Company insiders own 0.62% of the company's stock.

Hedge Funds Weigh In On Flex

Institutional investors and hedge funds have recently modified their holdings of the company. Deltec Asset Management LLC grew its position in Flex by 40.3% in the third quarter. Deltec Asset Management LLC now owns 139,284 shares of the technology company's stock worth $15,320,000 after acquiring an additional 40,003 shares in the last quarter. Rithm Capital Corp. purchased a new stake in Flex during the first quarter valued at approximately $1,407,000. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in Flex during the second quarter valued at approximately $8,659,000. SteelPeak Wealth LLC bought a new stake in shares of Flex in the 3rd quarter valued at approximately $1,359,000. Finally, Andra AP fonden lifted its stake in shares of Flex by 41.9% in the 2nd quarter. Andra AP fonden now owns 38,624 shares of the technology company's stock valued at $6,260,000 after purchasing an additional 11,400 shares during the last quarter. 94.30% of the stock is currently owned by hedge funds and other institutional investors.

About Flex

Flex Ltd. is a global manufacturing and supply-chain services company that works with businesses to design, engineer, manufacture and support products. Its services include product development, sourcing, production, logistics and after-market support.

The company serves a range of industries, including automotive, healthcare, industrial, lifestyle and communications, as well as cloud and data-center markets. Its work spans products and systems such as medical devices, vehicle components, industrial equipment and technology infrastructure.

Founded in California in 1969 as Flextronics, the company adopted the name Flex in 2016.

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