Flex (NASDAQ:FLEX) Stock Falls 5.6% - What's Next?

Key Points

• Flex shares fell 5.6% to about $110.62, with trading volume roughly 80% below the average daily level.
• Analysts remain broadly optimistic, with a consensus “Moderate Buy” rating and an average price target of $119.67, though some firms recently downgraded the stock or reduced targets.
• Flex reported quarterly revenue of $7.93 billion and EPS of $1.00; institutional investors own a substantial 94.3% of shares, while an insider sale was made to cover tax withholding on vested equity awards.

Flex Ltd. (NASDAQ:FLEX - Get Free Report)'s stock price fell 5.6% during trading on Tuesday. The company traded as low as $110.77 and last traded at $110.6210. Approximately 918,823 shares were traded during trading, a decline of 80% from the average daily volume of 4,673,199 shares. The stock had previously closed at $117.24.

Wall Street Analysts Forecast Growth

FLEX has been the subject of several research reports. Raymond James Financial set a $170.00 price objective on Flex and gave the stock an "outperform" rating in a research note on Wednesday, July 29th. Weiss Ratings downgraded Flex from a "buy (b-)" rating to a "hold (c+)" rating in a report on Thursday, September 17th. Robert W. Baird set a $142.00 price target on Flex in a research report on Thursday, July 30th. The Goldman Sachs Group dropped their price target on Flex from $177.00 to $154.00 and set a "buy" rating on the stock in a research note on Thursday, July 30th. Finally, Zacks Research downgraded Flex from a "strong-buy" rating to a "hold" rating in a report on Tuesday, July 7th. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and three have assigned 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 $119.67.

Flex Price Performance

The company has a debt-to-equity ratio of 0.95, a current ratio of 1.38 and a quick ratio of 0.89. The firm has a market cap of $40.26 billion, a price-to-earnings ratio of 42.10, a price-to-earnings-growth ratio of 0.61 and a beta of 1.67. The stock's fifty day moving average price is $114.60 and its 200-day moving average price is $118.12.

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

Insider Activity at Flex

In other news, insider Michael P. Hartung sold 2,755 shares of the firm's stock in a transaction on Tuesday, August 18th. The stock was 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 $29,336,632. This trade represents a 1.12% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 0.62% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Flex

Several hedge funds have recently bought and sold shares of the business. Polar Capital Holdings Plc lifted its position in Flex by 141.8% in the 4th quarter. Polar Capital Holdings Plc now owns 3,693,141 shares of the technology company's stock worth $223,140,000 after buying an additional 2,165,780 shares in the last quarter. KBC Group NV grew its holdings in shares of Flex by 541.5% during the 1st quarter. KBC Group NV now owns 1,965,811 shares of the technology company's stock valued at $128,682,000 after acquiring an additional 1,659,384 shares in the last quarter. Electron Capital Partners LLC purchased a new position in shares of Flex during the 4th quarter valued at $57,288,000. Sei Investments Co. increased its stake in shares of Flex by 52.2% in the first quarter. Sei Investments Co. now owns 2,230,622 shares of the technology company's stock worth $146,016,000 after acquiring an additional 764,558 shares during the last quarter. Finally, SG Americas Securities LLC increased its stake in shares of Flex by 167.1% in the first quarter. SG Americas Securities LLC now owns 532,373 shares of the technology company's stock worth $34,849,000 after acquiring an additional 333,071 shares during the last quarter. 94.30% of the stock is owned by hedge funds and other institutional investors.

About Flex

Flex Ltd. NASDAQ: FLEX is a global manufacturing and supply-chain solutions provider that helps companies design, build and deliver products. The company works with original equipment manufacturers and other brands across the product life cycle, from product design and engineering through manufacturing, logistics and aftermarket services.

Its capabilities include electronics manufacturing, printed circuit board assembly, systems integration, mechanical manufacturing, testing, product development and supply-chain management.

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