Cookson Peirce & Co. Inc., a renowned investment management firm, recently made headlines with its purchase of a new position in Flex Ltd. (NASDAQ:FLEX) during the first quarter of the year. As per the filing with the Securities and Exchange Commission (SEC), Cookson Peirce & Co. Inc. acquired 1,159,090 shares of Flex, equivalent to a value of around $26,671,000.
Flex holds an important place in Cookson Peirce & Co. Inc.’s investment portfolio, accounting for approximately 1.7% of the total holdings and ranking as its 17th biggest position in terms of value. At the conclusion of the most recent quarter, Cookson Peirce & Co. Inc.’s ownership interest in Flex was estimated to be around 0.26%.
On May 10th, Flex reported its quarterly earnings data, which showcased a positive performance exceeding market expectations. The technology company revealed earnings per share (EPS) amounting to $0.48 for the quarter, topping the consensus estimate by $0.03 as analysts had anticipated an EPS of $0.45.
In addition to surpassing earnings expectations, Flex demonstrated a commendable return on equity (ROE) of 18.90% and achieved a net margin of 2.60%. The company also witnessed significant revenue growth during the period under review, generating $7.48 billion in revenue compared to analysts’ estimates of $7.18 billion.
Flex operates globally and provides various technology-related solutions including supply chain management and manufacturing services across Asia, the Americas, and Europe. The company is divided into three segments: Flex Agility Solutions (FAS), Flex Reliability Solutions (FRS), and Nextracker.
The FAS segment focuses on flexible supply and manufacturing systems that cover communications infrastructure such as data centers and edge computing facilities as well as enterprise and cloud solutions. Additionally, the FAS segment encompasses lifestyle solutions including appliances, consumer packaging, floorcare products, micro mobility devices, and audio solutions. Moreover, the FAS segment caters to consumer device needs with its range of mobile devices and high-velocity consumer products.
Flex’s FRS segment specializes in offering reliable supply chain management and manufacturing services across various industries. This segment ensures consistent quality control and efficient operations for clients seeking reliable solutions.
Lastly, Nextracker is another integral part of Flex’s business model. This segment focuses on providing advanced tracking solutions for solar power systems. These innovative technologies optimize solar energy generation by effectively tracking sunlight throughout the day, ultimately enhancing overall efficiency.
As we look ahead to the future of Flex Ltd., equities analysts project that the company will achieve 2.08 EPS for the current year. With its strong financial performance, diversified operations across continents, and a robust product portfolio covering a wide range of industries, Flex appears well-positioned to continue its growth trajectory in an increasingly competitive technology market.
In conclusion, Cookson Peirce & Co. Inc.’s recent investment in Flex Ltd., coupled with the company’s impressive quarterly earnings report and diverse business segments catering to global customers’ needs across various industries, reaffirms Flex’s position as a significant player in the technology sector. With favorable projections for earnings per share this year, Flex remains an attractive prospect for investors seeking exposure to innovative technology companies with a solid track record of performance.
Updated on: 31/07/2023
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Industrial Alliance Securities
Flex Ltd.: Positioned for Growth in the Technology and Manufacturing Sectors
Flex Ltd., a global provider of technology, supply chain, and manufacturing solutions, has been the subject of recent activity in the hedge fund world. Motco, Atticus Wealth Management LLC, Exchange Traded Concepts LLC, Belpointe Asset Management LLC, and Dark Forest Capital Management LP have all taken positions in Flex during various quarters. These institutional investors now collectively own 94.74% of the company’s stock.
The trading volume for Flex stock on Friday stood at 5,853,980 shares, with a market cap of $11.99 billion. The stock traded at $26.98 per share during midday trading on Friday, experiencing a slight decrease of $0.02 from previous levels. Notably, it has seen a year-high of $28.90 and a year-low of $16.11.
With its headquarters in Singapore and operations spread across Asia, the Americas, and Europe, Flex offers a variety of solutions to meet customer needs. The company operates through three segments: Flex Agility Solutions (FAS), Flex Reliability Solutions (FRS), and Nextracker. FAS provides flexible supply and manufacturing systems for communication infrastructure as well as consumer devices like mobile phones.
In terms of insider activity, Kwang Hooi Tan – an executive within Flex – sold 9,185 shares on June 2nd for approximately $239,452.95. This brought his total ownership down to 121,817 shares valued at around $3,1753-. Meanwhile CEO Revathi Advaithi sold 24,254 shares on June 14th for approximately $645k which reduced their stake to about 1>8 million shares—worth nearly S48 “illions>
Several brokerages have recently weighed in on this stock as well: StockNews.com initiated coverage with a “hold” rating while Bank of America raised its target price from S28$D0 to $31. Credit Suisse Group also issued an “outperform” rating and set a target of $34 for Flex.
Flex Ltd.’s performance in the market has caught the attention of both institutional investors and industry analysts alike. With its global reach and innovative solutions, the company continues to make strides in the technology and manufacturing sectors. As it moves forward, market watchers will be eager to see what comes next for this industry leader.