Citigroup Inc. has announced an increase in its position in Flex Ltd., a technology company listed on the NASDAQ stock exchange. According to their recent 13F filing with the Securities and Exchange Commission, Citigroup Inc. purchased an additional 11,372 shares during the first quarter of this year, representing a 10.5% increase in their overall holdings.
At the end of the first quarter, Citigroup Inc.’s holdings in Flex were valued at approximately $2,755,000. This move indicates that Citigroup Inc. sees potential for growth and value in Flex Ltd., as they have made a significant investment to increase their stake in the company.
Flex recently released its quarterly earnings report for the period ending on July 26th. The report revealed that the technology company exceeded analysts’ expectations by reporting earnings per share (EPS) of $0.50 for the quarter, surpassing the consensus estimate of $0.41 by $0.09.
Additionally, Flex reported revenue of $7.34 billion for the same quarter, slightly exceeding the consensus estimate of $7.24 billion. This demonstrates strong financial performance and suggests that Flex is executing sound business strategies.
Flex achieved a net margin of 2.60% and a return on equity of 17.98%, further indicating its stability and ability to generate profits efficiently.
Analysts predict that Flex Ltd.’s earnings per share for this year will amount to approximately 2.13.
The increased position taken by Citigroup Inc., coupled with Flex’s solid financial performance, may signal confidence not only in Flex but also in the overall technology sector.
It is worth noting that investing always carries risks, including potential losses; therefore, investors need to carefully consider their portfolio diversification and risk tolerance before making any investment decisions.
As we approach the end of 2023, it will be interesting to observe how these developments unfold within both Citigroup Inc. and Flex Ltd., as well as the broader market trends within the technology sector.
Updated on: 07/09/2023
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Industrial Alliance Securities
Insider Sales and Institutional Interest: Analyzing the Investment Potential of Flex Ltd.
Flex Ltd., a multinational electronics manufacturing services company, has recently seen activity from various hedge funds and institutional investors. Atticus Wealth Management LLC, Motco, Dark Forest Capital Management LP, Belpointe Asset Management LLC, and James Investment Research Inc. have all acquired positions in Flex during the first and fourth quarters of this year. These investments range from $27,000 to $60,000, collectively representing a significant ownership stake of 95.26%.
Financial analysts have also been following the performance of Flex closely and providing insights on its stock. Bank of America raised their target price for Flex shares from $28.00 to $31.00 in July while StockNews.com gave the company a “hold” rating in August. Credit Suisse Group reiterated an “outperform” rating with a target price of $34.00.
In recent news related to Flex, Chief Financial Officer (CFO) Paul Lundstrom sold 45,445 shares on June 7th for an average price of $26.51 per share, resulting in a total transaction value exceeding $1 million. Following this sale, Lundstrom now holds 540,094 shares valued at around $14 million. Additionally, CEO Revathi Advaithi sold 240,000 shares on July 31st at an average price of $27.29 per share amounting to nearly $6.5 million. Advaithi’s remaining stake is approximately valued at over $43 million.
These transactions were disclosed through filings with the Securities and Exchange Commission (SEC), available on their official website. As of now, insiders have collectively sold 618,136 shares worth approximately $16.6 million over the past three months. It should be noted that these insider sales account for only 0.56% of the company’s stock.
Shares of Flex Ltd., traded on NASDAQ under the ticker FLEX, opened at $27.51 on September 5th. The stock has experienced fluctuations over the past year, with a low of $16.11 and a high of $28.90. Flex has a debt-to-equity ratio of 0.60 and a current ratio of 1.46, indicating the company’s financial stability in meeting short-term obligations. The fifty-day simple moving average stands at $27.24, while the two-hundred-day simple moving average is at $24.54.
With a market capitalization reaching $12.20 billion, Flex Ltd. remains an important player in the electronics manufacturing services industry with its diverse range of solutions and strong market presence. Its price-earnings ratio currently stands at 15.99, suggesting that investors perceive favorable future prospects for the company’s earnings growth potential when compared to its stock price valuation – this is further supported by its low P/E to G (growth) ratio of 1.14, indicating more significant growth expectations relative to its valuation metric.
Despite recent insider selling and increasing ownership by institutional investors and hedge funds, Flex presents an intriguing investment opportunity for those interested in the electronics manufacturing services sector due to its solid financials, diverse customer base, and positive reputation within the industry.
It is essential for potential investors to conduct thorough research before making any investment decisions in light of changing market conditions and incorporating individual risk tolerance levels into their considerations regarding Flex Ltd.’s stock performance and broader economic factors impacting the electronics manufacturing sector as a whole.
Note: This article is based on information available as of September 5, 2023