Group President Kwang Tan Sells Shares of Flex Ltd (FLEX)
Flex Ltd (NASDAQ:FLEX), a diversified global manufacturing company that offers design, engineering, manufacturing, and supply chain services and solutions to various industries, has reported an insider sale according to a recent SEC filing. Group President Kwang Tan sold 8,027 shares of the company on March 13, 2024.The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this link. Following the sale, the insider now directly owns shares in the company. The shares were sold at an average price of $28.81, with a total value of the transaction amounting to several hundred thousand dollars.Over the past year, Kwang Tan has engaged in multiple transactions, selling a total of 89,122 shares and making no purchases of Flex Ltd stock. The insider transaction history for Flex Ltd shows a pattern of sales by insiders, with 36 insider sells and no insider buys over the past year.
The market capitalization of Flex Ltd stands at $12.108 billion, with the stock trading at $28.81 on the day of the insider's recent sale. The price-earnings ratio of the company is 17.11, which is below the industry median of 23.51, indicating a potentially lower valuation compared to its peers. However, it is higher than the company's historical median price-earnings ratio.According to the GuruFocus Value chart, with a price of $28.81 and a GuruFocus Value of $17.66, Flex Ltd has a price-to-GF-Value ratio of 1.63, suggesting that the stock is Significantly Overvalued based on its GF Value.
The GF Value is determined by considering historical trading multiples such as price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow, along with a GuruFocus adjustment factor based on the company's past returns and growth, and future business performance estimates from Morningstar analysts.Investors often monitor insider transactions as they can provide insights into how the company's executives and directors view the stock's value. However, it is important to note that insider transactions are just one of many factors that should be considered when evaluating a company's financial health and investment potential.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
