It was reported on November 13, that J. Joel Quadracci, Director at Plexus PLXS executed a significant insider sell, according to an SEC filing.

What Happened: Quadracci’s recent move involves selling 2,450 shares of Plexus. This information is documented in a Form 4 filing with the U.S. Securities and Exchange Commission on Wednesday. The total value is $399,539.

As of Thursday morning, Plexus shares are down by 0.0%, currently priced at $155.88.

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.

Plexus’s Financial Performance

Revenue Growth: Plexus displayed positive results in 3 months. As of 30 September, 2024, the company achieved a solid revenue growth rate of approximately 9.35%. This indicates a notable increase in the company’s top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Key Insights into Profitability Metrics:

• Gross Margin: With a low gross margin of 10.27%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Plexus’s EPS outshines the industry average, indicating a strong bottom-line trend with a current EPS of 1.52.

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.

Understanding Financial 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 38.87.

• Price to Sales (P/S) Ratio: With a P/S ratio of 1.1 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): With an impressive EV/EBITDA ratio of 26.38, Plexus demonstrates exemplary market valuation, surpassing industry averages.

Market Capitalization Analysis: Falling below industry benchmarks, the company’s market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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The Relevance of Insider Transactions

Considering insider transactions is valuable, but it’s crucial to evaluate them in conjunction with other investment factors.

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.

A Deep Dive into Insider Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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.