Check Out the Insider Trading of Flex Ltd. (FLEX)

Will Flex Ltd. (NASDAQ:FLEX) rip to new highs anytime soon? Who knows, but much of it depends on what analysts believe and what action the company’s insiders pursue. The stock closed lower on 07 February. The shares dropped -0.06 points or -0.62 percent at $9.67 with a heavy trade volume of 9.65 million shares. After opening the session at $9.69, the shares went as high as $9.73 and as low as $9.45, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $5.14 billion and now has 531.5 million shares outstanding. Flex Ltd. (FLEX) stock has gained 24.13 percent of market value in 21 trading days.

FLEX stock has a trailing 3-year beta of 1.65, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $0.56 a share in the trailing twelve months. The stock’s value has surged 27.07 percent year to date (YTD) against a decline of -44.14 percent in 12 month’s time. The company’s shares still trade -49.35 percent away from its 1-year high of $19.09 and 43.47 percent up from 52-week low of $6.74. The average consensus rating on the company is 2.4, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Flex Ltd. (FLEX) will probably climb 30.3 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $15 price as 12-month high target. This represents a whopping 55.12 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $12, which represents a return potential of 24.1 percent when compared to the closing price of the stock of $9.67 on Thursday, February 07. The lowest price target for the stock is $10 — slightly more than 3.41 percent from FLEX’s current share price.

History has shown that shares in Flex Ltd. have gone down on 19 different earnings reaction days and are predicted to add 0.05 percent when the company reports upcoming earnings.

Let’s take a look at some insider activity at Flex Ltd. (NASDAQ:FLEX) and see the pattern. The earliest insider trade took place on 01/17/2019. Li Jennifer parted with a total of 0.08 thousand shares of company at average share price of $7.91. The total for the sales was set at $0.6 thousand. After this transaction, the Director account balance stood at 23.07 thousand shares. The stock grew 22.25 percent since that insider sale. On 01/17/2019, Tan Lay Koon, Director, sold 0.67 thousand shares at a price per share of $7.91. This removed 5.32 thousand shares from the insider’s fortune and the stock saw a 22.25 percent rally in value since the news became public. This transaction left 144.57 thousand shares in the Director account.

On 12/04/2018, Director Onetto Marc A performed a purchase transaction worth $97.64 thousand. This purchase at $8.49 each has added 11.5 thousand shares into the insider’s portfolio position. Meanwhile, shares have recorded 13.9 percent increase since the transaction was reported. The insider now is left with 90.8 thousand shares remaining in the account. Offer David Scott, who performs the EVP, General Counsel job, bought 27.03 thousand shares for $202.16 thousand. The acquisition occurred on 10/30/2018 was priced at $7.48 per share. The share price soared 29.28 percent since the reporting date. Offer David Scott now left with a stake of 311.17 thousand FLEX stock worth $3.01 million after the insider buying.

The stock is currently hovering around the first support level of $9.5. Below this, the next support is placed in the zone of $9.34. Till the time, the FLEX stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 72.76 on daily chart, which may remain a cause for concern. If the price breaks below $9.34 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $9.78 mark may result into a pull-back move towards $9.9 level.

Further, it is sporting a 0.2 on the Price-to-Sales ratio. Compare this with the industry average P/S of 1.75. 6.2 percent is the gross profit margin for Flex Ltd. and operating margin sits at 2.1 percent. Along with this, the net profit margin is 1.1 percent.