Sell Alert: David Scott Offer Cashes Out $1.35M In Flex Stock

Disclosed on May 14, David Scott Offer, EVP at Flex FLEX, executed a substantial insider sell as per the latest SEC filing.

What Happened: Offer's decision to sell 32,172 shares of Flex was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value of the sale is $1,350,918.

Flex shares are trading up 2.15% at $42.75 at the time of this writing on Wednesday morning.

Get to Know Flex Better

Flex Ltd is a contract manufacturing company providing comprehensive electronics design, manufacturing, and product management services to electronics and technology companies. The company's operating segments include Flex Agility Solutions (FAS) and Flex Reliability Solutions (FRS). Flex Agility Solutions segment includes markets such as Communications, Enterprise and Cloud; Lifestyle; and Consumer Devices. Flex Reliability Solutions segment includes markets such as Automotive, Health Solutions, and Industrial.

Understanding the Numbers: Flex's Finances

Revenue Growth: Flex's revenue growth over a period of 3 months has faced challenges. As of 31 March, 2025, the company experienced a revenue decline of approximately -2.41%. This indicates a decrease in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Interpreting Earnings Metrics:

• Gross Margin: With a low gross margin of 8.8%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Flex's EPS reflects a decline, falling below the industry average with a current EPS of 0.579479.

Debt Management: Flex's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.83, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Understanding Financial Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 19.83 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 0.65 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio of 10.05 trails industry averages, indicating a potential disparity in market valuation that could be advantageous for investors.

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

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The Relevance of Insider Transactions

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

A Deep Dive into Insider Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Flex's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.