It was reported on November 13, that Dean A Foate, Board Member at Plexus PLXS executed a significant insider sell, according to an SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday, Foate sold 2,500 shares of Plexus. The total transaction value is $417,764.

The latest update on Thursday morning shows Plexus shares down by 0.65%, trading at $154.87.

Get to Know Plexus Better

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.

A Deep Dive into Plexus’s Financials

Revenue Growth: Over the 3 months period, Plexus showcased positive performance, achieving a revenue growth rate of 9.35% as of 30 September, 2024. This reflects a substantial increase in the company’s top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.

Key Insights into Profitability Metrics:

• Gross Margin: The company faces challenges with a low gross margin of 10.27%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 1.52, Plexus showcases strong earnings per share.

Debt Management: Plexus’s debt-to-equity ratio is below the industry average at 0.21, reflecting a lower dependency on debt financing and a more conservative financial approach.

Exploring Valuation Metrics Landscape:

• 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 38.87.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.1, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Plexus’s EV/EBITDA ratio of 26.38 exceeds industry averages, indicating a premium valuation in the market

Market Capitalization Analysis: Reflecting a smaller scale, the company’s market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

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Unmasking the Significance of Insider Transactions

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

Within the legal framework, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

Essential Transaction Codes Unveiled

Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies 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.