Flex Ltd. (FLEX) Shares: Cheap or Risky?


Flex Ltd. (NASDAQ:FLEX) saw an upside of 0.74% to close Monday at $24.42 after adding $0.18 on the day. The 5-day average trading volume is 6,596,419 shares of the company’s common stock. It has gained $25.12 in the past week and touched a new high 1 time within the past 5 days. An average of 4,564,775 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 4,378,816.

FLEX’s 1-month performance is 14.33% or $2.94 on its low of $20.91 reached on 12/28/22. The company’s shares have touched a 52-week low of $13.63 and high of $25.12, with the stock’s rally to the 52-week high happening on 01/17/23. YTD, FLEX has achieved 13.79% or $2.96 and has reached a new high 8 times. However, the current price is down -2.79% from the 52-week high price.

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Insider Transactions

FLEX stock investors last saw insider trading activity on Dec 05.Stevens Charles K. III (Director) most recently sold 20,000 shares at $21.69 per share on Dec 05. This transaction cost the insider $433,800. Group President, Hartung Michael P, sold 12,376 shares at a price of $21.39 on Nov 30. Then, on Nov 25, Group President Hartung Michael P sold 1,728 shares at a price of $21.00 per share. This transaction amounted to $36,292.

Valuation Metrics

FLEX stock has a beta of 1.48. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 0.38 while the price-to-book (PB) in the most recent quarter is 2.66, with the price to cash flow ratio at 88.31.

Flex Ltd.’s quick ratio for the period ended September 29 was 0.70, with the current ratio over the same period at 1.30. As well, the company’s long term debt to equity for the quarter ending September 29 was 0.74, while the total debt to equity was 0.96. In terms of profitability, the gross margin trailing 12 months is 7.50%. The firm’s gross profit as reported stood at $1.93 billion against revenue of $26.04 billion.

Earnings Surprise

For the quarterly period ending September 29 this year, Net income and sales went up compared to those figures reported in the previous quarter. Net income shrunk -44.83% to $232.0 million, while revenue of $189.0 million was 18.53% off the previous quarter. Analysts expected FLEX to announce $0.48 per share in earnings in its latest quarter, but it posted $0.59, representing a 22.90% surprise. EBITDA for the quarter stood at more than $448.0 million. FLEX stock balance sheet for the quarter ending September 29 shows that total liabilities totaled 16.44 billion, with total debt at $4.49 billion. Shareholders hold equity totaling $452.78 million.

Let’s look briefly at Flex Ltd. (FLEX) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 23 January was 77.52% to suggest the stock is trending Overbought, with historical volatility in this time period at 19.14%.

The stock’s 5-day moving average is $23.96, reflecting a +1.62% or $0.39 change from its current price. FLEX is currently trading +11.86% above its 20-day SMA, +33.59% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +24.53% and SMA200 by+37.19%.

Stochastic %K and %D was 74.96% and 70.17% and the average true range (ATR) pointed at 0.72. The RSI (14) points at 72.59%, while the 14-day stochastic is at 82.32% with the period’s ATR at 0.71. The stock’s 9-day MACD Oscillator is pointing at 0.34 and 0.95 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for Flex Ltd. (NASDAQ: FLEX), Credit Suisse launched coverage with an Outperform rating. Analysts offering their rating for FLEX stock have a consensus rating for the stock as Buy. Currently, 0 brokerage advisors rate FLEX as a “sell,”, while 2 advise that investors “Hold.” 0 analysts have rated the stock as underweight. 0 rates the stock as overweight while 9 have offered a “buy” rating.

What is FLEX’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $23.00 and a high of $31.00, with their median price target at $25.00. Looking at these predictions, the average price target given by analysts is for Flex Ltd. (FLEX) stock is $26.25.


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