Flex Ltd. (NASDAQ:FLEX) finished Wednesday with a subtraction of -$0.07 to close at $27.00, a downside of -0.27 percent. An average of 2,276,851 shares of common stock have been traded in the last five days. There was a gain of $0.33 in the past week, and it reached a new high 41 times over the past 12 months. The last 20 days have seen an average of 3,906,533 shares traded, while the 50-day average volume stands at 3,589,489.
FLEX stock has decreased by -3.68% in the last month. The company shares reached their 1-month lowest point of $26.62 on 08/03/23. With the stock rallying to its 52-week high on 07/21/23, shares of the company touched a low of $16.11 and a high of $28.90 in 52 weeks. It has reached a new high 26 times so far this year and achieved 25.81% or $5.58 in price. In spite of this, the price is down -6.58% from the 52-week high.
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Insider Transactions
FLEX stock investors should be aware that Flex Ltd. (FLEX) stock had its last reported insider trading activity 10 days ago on Jul 31. In this transaction, the insider spent $6,549,264. Group President, Tan Kwang Hooi, disposed of 5,020 shares at a price of $26.97 on Jun 21. The insider now owns more than $135,396 worth of shares. Prior to that, Group President Tan Kwang Hooi went on to Sale 3,602 shares at $26.80 each on Jun 16. An amount of $96,544 was transacted.
Valuation Metrics
Flex Ltd. (FLEX) has a trailing price-to-earnings (P/E) ratio of 15.68. The stock’s beta is 1.45. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.39, the price-to-book (PB) ratio at 2.23, and the price-to-cash flow ratio at 53.43.
Financial Health
The quick ratio of Flex Ltd. for the three months ended June 29 was 0.80, and the current ratio was 1.50, indicating that the company is not able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.64 and a total debt to equity ratio of 0.67 for the quarter ending June 29. Flex Ltd.’s EBITDA margin for the year ending June 29 is 6.32%, while its operating margin for the same period stands at 4.00%. Its gross profit as reported stood at $2.27 billion compared to revenue of $30.35 billion.
For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Flex Ltd.’s return on assets was 3.80%.
Earnings Surprise
For the three-month period that ended June 29, Flex Ltd. had $3.44 billion in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $186.0 million in the quarter, while revenues were shrunk -1.61%. The analyst consensus anticipated Flex Ltd.’s latest quarter earnings to come in at $0.51 per share, but it turned out to be $0.57, a 11.80% surprise. For the quarter, EBITDA amounted to $424.0 million. Shareholders own equity worth $446.63 million.
Technical Picture
From a technical analysis perspective, let’s take a brief look at Flex Ltd. (FLEX) price momentum. RSI 9-day as of the close on 09 August was 42.40%, suggesting the stock is Neutral, with historical volatility in this time frame at 17.69%.
As of today, FLEX’s price is $27.22 +1.22% or $0.33 from its 5-day moving average. FLEX is currently trading -4.40% lower than its 20-day SMA and +30.41% higher than its 100-day SMA. However, the stock’s current price level is +4.79% above the SMA50 and +50.53% above the SMA200.
The stochastic %K and %D were 26.63% and 29.73%, respectively, and the average true range (ATR) was 0.56. With the 14-day stochastic at 20.24% and the average true range at 0.57, the RSI (14) stands at 46.16%. The stock has reached 0.05 on the 9-day MACD Oscillator while the 14-day reading was at -0.17.
Analyst Ratings
The consensus rating for Flex Ltd. (FLEX) among analysts is Buy. According to current brokerage recommendations, 0 brokerage firms advise that investors sell FLEX, while 2 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 8 others rate it as a “buy”.
What is FLEX’s price target for the next 12 months?
Analysts predict a range of price targets between $31.00 and $36.00, with a median target of $32.00. Taking a look at these predictions, the average price target given by analysts for Flex Ltd. (FLEX) stock is $32.86.
