Todd P Kelsey, President & CEO at Plexus PLXS, reported an insider sell on November 6, according to a new SEC filing.

What Happened: Kelsey’s recent Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday unveiled the sale of 8,000 shares of Plexus. The total transaction value is $1,253,233.

During Thursday’s morning session, Plexus shares down by 1.66%, currently priced at $164.0.

Unveiling the Story Behind Plexus

Plexus Corp is a U.S based Electronic Manufacturing Services company that provides a range of services, from conceptualization and design to fulfilling orders and providing sustaining solutions, such as replenishment and refurbishment. The company’s segments comprise AMER, APAC,ge and EMEA.

Financial Milestones: Plexus’s Journey

Revenue Growth: Plexus’s revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 9.35%. This indicates a substantial increase in the company’s top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Analyzing Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 10.27%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Plexus’s EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 1.52.

Debt Management: Plexus’s debt-to-equity ratio is below the industry average. With a ratio of 0.21, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: Plexus’s stock is currently priced at a premium level, as reflected in the higher-than-average P/E ratio of 41.59.

• Price to Sales (P/S) Ratio: With a P/S ratio of 1.18 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Plexus’s EV/EBITDA ratio of 28.25 exceeds industry averages, indicating a premium valuation in the market

Market Capitalization: Indicating a reduced size compared to industry averages, the company’s market capitalization poses unique challenges.

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Illuminating the Importance of Insider Transactions

Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.

From a legal standpoint, the term “insider” pertains to any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider’s new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Understanding Crucial Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Plexus’s Insider Trades.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.