Flex (NASDAQ:FLEX) Shares Gap Down – Should You Sell?

Flex Ltd. (NASDAQ:FLEX) gapped down prior to trading on Wednesday . The stock had previously closed at $113.28, but opened at $100.01. Flex shares last traded at $106.4910, with a volume of 1,487,966 shares trading hands.

Key Flex News

Here are the key news stories impacting Flex this week:

• Positive Sentiment: Quarterly results beat estimates: Flex reported adjusted earnings of $1.00 per share, above consensus estimates ranging from $0.90 to $0.93 and up from $0.72 a year earlier. Revenue rose 20.6% year over year to approximately $7.9 billion, exceeding the $7.53 billion analyst estimate. Flex Surpasses Q1 Earnings and Revenue Estimates
• Positive Sentiment: Improved operating performance: First-quarter GAAP operating margin was 4.9%, while adjusted operating margin reached 6.7%. The combination of revenue growth and higher earnings supports the view that Flex is benefiting from strong demand across its manufacturing and technology businesses. Flex Reports First Quarter Fiscal 2027 Results
• Positive Sentiment: Guidance was raised above consensus expectations: Flex forecast second-quarter fiscal 2027 EPS of $1.00-$1.07 and revenue of $8.0-$8.3 billion, versus consensus estimates of $0.98 and $7.8 billion. Full-year EPS guidance of $4.42-$4.74 brackets a $4.46 consensus estimate, while full-year revenue guidance of $33.7-$35.2 billion is above the $33.3 billion consensus. Flex Earnings and Guidance
• Neutral Sentiment: Spin-off preparations continued: Flex announced leadership teams for the company and SpinCo, its planned independent Cloud and Power Infrastructure business. The separation is expected in the first calendar quarter of 2027; appointments add structure but also leave investors watching for execution risks during the transition. Flex Announces Spin-Off Leadership Teams

Wall Street Analyst Weigh In

A number of equities research analysts have weighed in on FLEX shares. Robert W. Baird set a $165.00 price objective on Flex in a report on Thursday, May 7th. Barclays upped their price target on Flex from $174.00 to $203.00 and gave the company an “overweight” rating in a research report on Thursday, June 4th. JPMorgan Chase & Co. boosted their target price on shares of Flex from $75.00 to $84.00 and gave the company an “overweight” rating in a research note on Thursday, April 16th. Stifel Nicolaus increased their target price on shares of Flex from $75.00 to $95.00 and gave the stock a “buy” rating in a research report on Monday, April 20th. Finally, Freedom Capital upgraded shares of Flex from a “hold” rating to a “strong-buy” rating in a research report on Thursday, July 16th. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $115.70.

Flex Stock Performance

The stock’s 50 day simple moving average is $140.84 and its two-hundred day simple moving average is $98.96. The company has a market capitalization of $38.30 billion, a P/E ratio of 44.84, a P/E/G ratio of 0.61 and a beta of 1.64. The company has a debt-to-equity ratio of 0.73, a current ratio of 1.36 and a quick ratio of 0.87.

Flex (NASDAQ:FLEX) last issued its quarterly earnings results on Wednesday, July 29th. The technology company reported $1.00 earnings per share for the quarter, beating analysts’ consensus estimates of $0.90 by $0.10. The business had revenue of $7.93 billion during the quarter, compared to analyst estimates of $7.53 billion. Flex had a net margin of 3.15% and a return on equity of 22.12%. Flex’s revenue for the quarter was up 20.6% compared to the same quarter last year. During the same quarter last year, the business posted $0.72 earnings per share. Flex has set its Q2 2027 guidance at 1.000-1.070 EPS and its FY 2027 guidance at 4.420-4.740 EPS. As a group, research analysts expect that Flex Ltd. will post 4.18 earnings per share for the current year.

Insider Buying and Selling at Flex

In other Flex news, EVP David Scott Offer sold 33,000 shares of the firm’s stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $153.91, for a total value of $5,079,030.00. Following the transaction, the executive vice president directly owned 73,471 shares of the company’s stock, valued at approximately $11,307,921.61. This trade represents a 30.99% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Revathi Advaithi sold 197,879 shares of the business’s stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $144.32, for a total value of $28,557,897.28. Following the transaction, the chief executive officer owned 623,466 shares of the company’s stock, valued at $89,978,613.12. The trade was a 24.09% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders have sold 769,195 shares of company stock valued at $110,116,823. 0.62% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Vanguard Group Inc. raised its holdings in shares of Flex by 196.1% in the 4th quarter. Vanguard Group Inc. now owns 38,746,330 shares of the technology company’s stock valued at $2,341,053,000 after purchasing an additional 25,662,586 shares during the period. State Street Corp increased its position in Flex by 17.8% during the 4th quarter. State Street Corp now owns 14,055,533 shares of the technology company’s stock worth $849,235,000 after buying an additional 2,126,440 shares during the period. Geode Capital Management LLC boosted its holdings in Flex by 2.4% in the 4th quarter. Geode Capital Management LLC now owns 7,605,802 shares of the technology company’s stock valued at $459,829,000 after purchasing an additional 181,266 shares during the period. Norges Bank acquired a new stake in Flex during the fourth quarter worth approximately $319,756,000. Finally, Polar Capital Holdings Plc raised its stake in Flex by 141.8% in the fourth quarter. Polar Capital Holdings Plc now owns 3,693,141 shares of the technology company’s stock valued at $223,140,000 after purchasing an additional 2,165,780 shares in the last quarter. 94.30% of the stock is owned by institutional investors and hedge funds.

Flex Company Profile

Flex (NASDAQ: FLEX), formerly known as Flextronics, is a global provider of electronics manufacturing services (EMS) and original design manufacturing (ODM). The company offers end-to-end product lifecycle solutions including product design and engineering, prototyping, volume manufacturing, testing, and aftermarket services. Its offerings extend into supply chain management, component sourcing, logistics and distribution, and advanced manufacturing capabilities such as automation and digital manufacturing to support customers from concept through end-of-life.

Flex serves a broad range of industries, including automotive, healthcare, industrial, communications, and consumer electronics, working with original equipment manufacturers (OEMs) and technology companies to accelerate time to market and manage complex supply chains.