Plexus (NASDAQ:PLXS) Share Price Breaks Above Two Hundred Day Moving Average - Should You Sell?

Key Points

• Plexus shares climbed above their 200-day moving average, reaching $241.95 and last trading at $239.34, although the 50-day average remains higher at $247.99.
• Analysts remain broadly bullish, with a consensus “Buy” rating and an average price target of $276.86; individual targets from KeyCorp and Needham reached $300 and $310, respectively.
• Plexus reported stronger-than-expected quarterly results, posting $2.84 in EPS and $1.43 billion in revenue, with revenue up 34.9% year over year. Insiders sold 9,000 shares during the quarter, while institutional investors own 94.45% of the stock.

Shares of Plexus Corp. (NASDAQ:PLXS - Get Free Report) passed above its 200-day moving average during trading on Wednesday. The stock has a 200-day moving average of $238.91 and traded as high as $241.95. Plexus shares last traded at $239.34, with a volume of 699,436 shares traded.

Analysts Set New Price Targets

A number of analysts have commented on PLXS shares. Zacks Research raised shares of Plexus from a "hold" rating to a "strong-buy" rating in a report on Tuesday, August 11th. KeyCorp raised Plexus from a "sector weight" rating to an "overweight" rating and set a $300.00 price target on the stock in a research report on Monday, September 21st. Weiss Ratings cut Plexus from a "buy (b-)" rating to a "hold (c+)" rating in a report on Friday, October 23rd. Needham & Company LLC reiterated a "buy" rating and set a $310.00 price objective on shares of Plexus in a report on Friday, August 14th. Finally, Wall Street Zen lowered Plexus from a "buy" rating to a "hold" rating in a research report on Saturday, October 24th. One investment analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Buy" and a consensus target price of $276.86.

Plexus Price Performance

The company's fifty day moving average is $247.99 and its 200 day moving average is $238.91. The firm has a market cap of $6.40 billion, a price-to-earnings ratio of 35.30 and a beta of 0.88. The company has a quick ratio of 0.72, a current ratio of 1.49 and a debt-to-equity ratio of 0.06.

Plexus (NASDAQ:PLXS - Get Free Report) last issued its quarterly earnings results on Wednesday, October 28th. The technology company reported $2.84 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.55 by $0.29. Plexus had a net margin of 4.03% and a return on equity of 12.46%. The firm had revenue of $1.43 billion for the quarter, compared to analyst estimates of $1.36 billion. During the same period in the previous year, the business earned $2.14 EPS. The company's revenue was up 34.9% compared to the same quarter last year. On average, equities research analysts predict that Plexus Corp. will post 7.13 EPS for the current year.

Insider Activity at Plexus

In related news, Director Karen Rapp sold 500 shares of Plexus stock in a transaction dated Monday, August 31st. The stock was sold at an average price of $240.87, for a total value of $120,435.00. Following the sale, the director owned 7,535 shares of the company's stock, valued at approximately $1,814,955.45. The trade was a 6.22% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Michael V. Schrock sold 4,000 shares of the company's stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $275.00, for a total value of $1,100,000.00. Following the sale, the director owned 40,329 shares in the company, valued at $11,090,475. The trade was a 9.02% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 9,000 shares of company stock valued at $2,319,260. 1.78% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the company. Mitsubishi UFJ Asset Management Co. Ltd. acquired a new stake in shares of Plexus during the 2nd quarter worth approximately $32,000. Root Financial Partners LLC acquired a new stake in shares of Plexus in the 3rd quarter valued at about $32,000. Kilter Group LLC acquired a new stake in shares of Plexus in the 2nd quarter valued at about $40,000. Integrated Wealth Concepts LLC acquired a new position in Plexus during the 2nd quarter worth approximately $51,000. Finally, Pension & Wealth Management Advisors Inc. bought a new position in Plexus in the third quarter worth approximately $45,000. 94.45% of the stock is currently owned by institutional investors and hedge funds.

About Plexus

Plexus Corp. is an electronics manufacturing services company that helps customers design, develop, manufacture and service complex electronic products. The company provides an integrated product-realization process spanning engineering and design, supply-chain management, manufacturing, testing, logistics and aftermarket services.

Plexus supports original equipment manufacturers in industries including healthcare and life sciences, industrial and commercial, aerospace and defense, and communications.

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