There is no doubt that Flex Ltd. (FLEX) ticks all the boxes.

Flex Ltd. (NASDAQ: FLEX) stock jumped 0.65% on Friday to $16.95 against a previous-day closing price of $16.84. With 4.04 million shares changed hands, the volume of the stock remained heavier than its average volume of 3.89 million shares. During the session, the Electronic Components company that operates in wider Technology sector, reached to the highest price of $17.06 whereas the lowest price it dropped to was $16.76. The 52-week range on FLEX shows that it touched its highest point at $19.50 and its lowest point at $13.63 during that stretch. It currently has a 1-year price target of $22.33. Beta for the stock currently stands at 1.52.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of FLEX was up-trending over the past week, with a rise of 3.29%, but this was up by 18.86% over a month. Three-month performance dropped to -4.45% while six-month performance rose 1.19%. The stock lost -4.02% in the past year, while it has lost -7.53% so far this year. A look at the trailing 12-month EPS for FLEX yields 1.93 with Next year EPS estimates of 2.35. For the next quarter, that number is 0.51. This implies an EPS growth rate of 60.00% for this year and 8.87% for next year. EPS is expected to grow by 16.85% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 27.10%.

Float and Shares Shorts:

At present, 458.00 million FLEX shares are outstanding with a float of 455.51 million shares on hand for trading. On Jul 14, 2022, short shares totaled 11.52 million, which was 2.51% higher than short shares on Jun 14, 2022. In addition to Ms. Revathi Advaithi as the firm’s CEO & Director, Mr. Paul R. Lundstrom serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 99.45% of FLEX’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 56.87% of FLEX, in contrast to 40.21% held by mutual funds. Shares owned by individuals account for 14.75%. As the largest shareholder in FLEX with 11.93% of the stake, PRIMECAP Management Co. holds 54,612,570 shares worth 54,612,570. A second-largest stockholder of FLEX, Wellington Management Co. LLP, holds 39,472,671 shares, controlling over 8.63% of the firm’s shares. Janus Henderson Investors US LLC is the third largest shareholder in FLEX, holding 22,763,441 shares or 4.97% stake. With a 3.94% stake in FLEX, the Janus Henderson Enterprise Fund is the largest stakeholder. A total of 18,018,604 shares are owned by the mutual fund manager. The Vanguard Capital Opportunity Fund, which owns about 3.50% of FLEX stock, is the second-largest Mutual Fund holder. It holds 16,009,012 shares valued at 231.65 million. Victory Sycamore Established Valu holds 3.20% of the stake in FLEX, owning 14,650,000 shares worth 211.99 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for FLEX since 10 analysts follow the stock currently. There are 8 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With FLEX analysts setting a high price target of $29.00 and a low target of $20.00, the average target price over the next 12 months is $22.43. Based on these targets, FLEX could surge 71.09% to reach the target high and rise by 17.99% to reach the target low. Reaching the average price target will result in a growth of 32.33% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. FLEX will report FY 2023 earnings on 05/03/2023. Analysts have provided yearly estimates in a range of $2.20 being high and $2.10 being low. For FLEX, this leads to a yearly average estimate of $2.15. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Flex Ltd. surprised analysts by $0.06 when it reported $0.54 EPS against a consensus estimate of $0.48. The surprise factor in the prior quarter was $0.08. Based on analyst estimates, the high estimate for the next quarter is $0.52 and the low estimate is $0.49. The average estimate for the next quarter is thus $0.51.

Summary of Insider Activity:

Insiders traded FLEX stock several times over the past three months with 14 Buys and 13 Sells. In these transactions, 987,278 shares were bought while 211,620 shares were sold. The number of buy transactions has increased to 25 while that of sell transactions has risen to 19 over the past year. The total number of shares bought during that period was 1,016,686 while 531,379 shares were sold.

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