Plexus (NASDAQ:PLXS) Downgraded by Zacks Investment Research

Zacks Investment Research lowered shares of Plexus (NASDAQ:PLXS) from a hold rating to a sell rating in a research note released on Wednesday morning, Zacks.com reports. Zacks Investment Research currently has $65.00 price target on the technology company’s stock.

According to Zacks, “Plexus continues to benefit from strong end-market demand in Healthcare/Life Sciences and Aerospace/Defense segments. Robust backlog of engineering contracts bodes well for the company in the long haul. Global expansion and new program wins are key positives for Plexus. Notably, shares have outperformed the industry on a year-to-date basis. Meanwhile, estimates have been stable ahead of the company’s third-quarter earnings release. However, the company has mixed record of earnings surprises in recent quarters. Its dependence on a few large customers for a major part of its revenues is a concern. Sluggish Communications end market is expected to negatively impact Plexus’ top line. Further, weakness in semiconductor capital equipment space is an overhang.”

Several other equities research analysts also recently weighed in on PLXS. Needham & Company LLC raised their price objective on Lam Research from $180.00 to $215.00 and gave the company a buy rating in a report on Tuesday, April 23rd. BidaskClub downgraded Weyco Group from a sell rating to a strong sell rating in a report on Saturday, July 13th. Finally, Sidoti set a $72.00 price objective on Plexus and gave the company a buy rating in a report on Friday, June 14th. One investment analyst has rated the stock with a sell rating, one has assigned a hold rating and three have given a buy rating to the company. The stock has an average rating of Hold and a consensus price target of $69.67.

Shares of PLXS opened at $56.05 on Wednesday. The company has a debt-to-equity ratio of 0.22, a quick ratio of 0.88 and a current ratio of 1.78. Plexus has a 52-week low of $47.63 and a 52-week high of $66.98. The company has a market cap of $1.69 billion, a price-to-earnings ratio of 17.35 and a beta of 0.99. The firm has a fifty day simple moving average of $55.87.

Plexus (NASDAQ:PLXS) last released its quarterly earnings data on Wednesday, July 17th. The technology company reported $0.81 earnings per share for the quarter, meeting the Thomson Reuters’ consensus estimate of $0.81. Plexus had a return on equity of 12.40% and a net margin of 4.62%. The company had revenue of $799.64 million for the quarter, compared to the consensus estimate of $783.30 million. During the same quarter last year, the business posted $0.79 EPS. Plexus’s revenue for the quarter was up 10.1% on a year-over-year basis. On average, equities analysts expect that Plexus will post 3.46 earnings per share for the current fiscal year.

In related news, CEO Todd P. Kelsey sold 10,693 shares of the firm’s stock in a transaction on Wednesday, April 24th. The stock was sold at an average price of $60.89, for a total transaction of $651,096.77. Following the sale, the chief executive officer now owns 87,548 shares of the company’s stock, valued at approximately $5,330,797.72. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, VP Ronnie Darroch sold 4,325 shares of Plexus stock in a transaction dated Tuesday, April 23rd. The stock was sold at an average price of $60.56, for a total value of $261,922.00. Following the transaction, the vice president now directly owns 8,451 shares in the company, valued at $511,792.56. The disclosure for this sale can be found here. In the last three months, insiders have sold 24,493 shares of company stock worth $1,485,704. 3.90% of the stock is currently owned by company insiders.

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Thrivent Financial for Lutherans lifted its holdings in Plexus by 11.6% during the 4th quarter. Thrivent Financial for Lutherans now owns 617,365 shares of the technology company’s stock worth $31,535,000 after buying an additional 64,098 shares during the period. Norges Bank acquired a new position in Plexus during the 4th quarter worth about $24,853,000. Geode Capital Management LLC lifted its holdings in Plexus by 3.4% during the 4th quarter. Geode Capital Management LLC now owns 386,839 shares of the technology company’s stock worth $19,759,000 after buying an additional 12,686 shares during the period. State of Wisconsin Investment Board lifted its holdings in Plexus by 25.9% during the 1st quarter. State of Wisconsin Investment Board now owns 189,490 shares of the technology company’s stock worth $11,549,000 after buying an additional 39,000 shares during the period. Finally, Bank of America Corp DE lifted its holdings in Plexus by 17.7% during the 4th quarter. Bank of America Corp DE now owns 138,834 shares of the technology company’s stock worth $7,091,000 after buying an additional 20,861 shares during the period. 94.51% of the stock is currently owned by hedge funds and other institutional investors.

About Plexus

Plexus Corp., together with its subsidiaries, provides electronic manufacturing services in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. It offers design and development, supply chain, new product introduction, and manufacturing solutions, as well as aftermarket services. The company provides its solutions to companies in the healthcare and life sciences, industrial and commercial, communications, and aerospace and defense sectors.

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