Flex Ltd. (FLEX) Clearly Signals Buy-Into the Stock: Don’t ignore the signals

Flex Ltd. (NASDAQ: FLEX) stock jumped 3.96% on Thursday to $25.47 against a previous-day closing price of $24.50. With 6.91 million shares changed hands, the volume of the stock remained heavier than its average volume of 4.42 million shares. The 52-week range on FLEX shows that it touched its highest point at $25.14 and its lowest point at $13.63 during that stretch. It currently has a 1-year price target of $29.17. Beta for the stock currently stands at 1.43.

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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 5.29%, but this was up by 28.38% over a month. Three-month performance surged to 9.60% while six-month performance rose 22.69%. The stock gained 62.96% in the past year, while it has gained 18.69% so far this year. A look at the trailing 12-month EPS for FLEX yields 1.72 with Next year EPS estimates of 2.73. For the next quarter, that number is 0.51. This implies an EPS growth rate of 60.00% for this year and 11.93% for next year. EPS is expected to grow by 16.56% 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, 452.00 million FLEX shares are outstanding with a float of 450.23 million shares on hand for trading. On May 14, 2023, short shares totaled 13.06 million, which was 2.94% higher than short shares on Apr 13, 2023. 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 101.50% of FLEX’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 57.25% of FLEX, in contrast to 39.71% held by mutual funds. Shares owned by individuals account for 15.00%. As the largest shareholder in FLEX with 10.95% of the stake, PRIMECAP Management Co. holds 49,377,864 shares worth 49,377,864. A second-largest stockholder of FLEX, Fidelity Management & Research Co, holds 30,281,797 shares, controlling over 6.71% of the firm’s shares. Wellington Management Co. LLP is the third largest shareholder in FLEX, holding 27,232,263 shares or 6.04% stake. With a 4.00% 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 3.53% of FLEX stock, is the second-largest Mutual Fund holder. It holds 15,903,242 shares valued at 327.13 million. Victory Sycamore Established Valu holds 3.23% of the stake in FLEX, owning 14,570,000 shares worth 299.7 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, FLEX reported revenue of $7.35B and operating income of $272.00M. The EBITDA in the recently reported quarter was $396.00M and diluted EPS was $0.40.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for FLEX since 0 analysts follow the stock currently. 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 $34.00 and a low target of $25.00, the average target price over the next 12 months is $29.29. Based on these targets, FLEX could surge 33.49% to reach the target high and fall by -1.85% to reach the target low. Reaching the average price target will result in a growth of 15.0% 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.

Summary of Insider Activity:

Insiders traded FLEX stock several times over the past three months with 3 Buys and 4 Sells. In these transactions, 8,830 shares were bought while 21,397 shares were sold. The number of buy transactions has increased to 34 while that of sell transactions has risen to 31 over the past year. The total number of shares bought during that period was 1,238,591 while 691,653 shares were sold.

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