Flex Director Sold $514K In Company Stock

Making a noteworthy insider sell on August 25, Erin McSweeney, Director at Flex (NASDAQ:FLEX), is reported in the latest SEC filing.

What Happened: McSweeney opted to sell 10,000 shares of Flex, according to a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The transaction's total worth stands at $514,711.

Flex shares are trading up 0.94% at $53.48 at the time of this writing on Tuesday morning.

About Flex

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.

Flex: A Financial Overview

Revenue Growth: Flex's remarkable performance in 3 months is evident. As of 30 June, 2025, the company achieved an impressive revenue growth rate of 4.13%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Profitability Metrics: Unlocking Value

• Gross Margin: The company shows a low gross margin of 8.7%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): With an EPS below industry norms, Flex exhibits below-average bottom-line performance with a current EPS of 0.51.

Debt Management: Flex's debt-to-equity ratio is notably higher than the industry average. With a ratio of 0.84, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: The P/E ratio of 23.34 is lower than the industry average, implying a discounted valuation for Flex's stock.

• Price to Sales (P/S) Ratio: The P/S ratio of 0.79 is lower than the industry average, implying a discounted valuation for Flex's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Flex's EV/EBITDA ratio at 11.84 suggests potential undervaluation, falling below industry averages.

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

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Why Insider Activity Matters in Finance

Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

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.

Navigating the World of Insider Transaction Codes

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes 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.