Plexus Corp (NASDAQ:PLXS) CEO Todd P. Kelsey has recently sold shares of the company's stock, according to a new SEC filing. The transaction, which took place on April 1, 2024, involved the sale of 2,000 shares at a price of $94.38 each, amounting to a total sale value of $188,760.
The shares sold by Kelsey were part of a planned sale under a Rule 10b5-1 trading plan, which was adopted on May 11, 2023. This type of plan allows company insiders to set up a predetermined schedule for selling shares over time, providing an affirmative defense against accusations of trading on insider information.
Following the sale, Kelsey still holds a substantial number of shares in Plexus Corp. The SEC filing revealed that, after the transaction, the CEO owned 114,810 shares directly. Additionally, Kelsey has an indirect ownership in the form of shares held in the Plexus Corp. 401(k) Retirement Plan, as reported by the Plan's trustee, which was not affected by this sale.
Plexus Corp, headquartered in Neenah, Wisconsin, specializes in the manufacturing of printed circuit boards and is known for its role in the tech industry's supply chain.
Investors often monitor the buying and selling activity of company insiders as it can provide insights into the executive's perspective on the company's current valuation and future prospects. However, it's important to note that there are many reasons why an insider might sell shares, and such transactions do not necessarily indicate a lack of confidence in the company.
The sale by Kelsey represents a notable transaction for Plexus Corp and will likely be of interest to current and potential investors as they evaluate their positions in the company's stock.
InvestingPro Insights
Plexus Corp (NASDAQ:PLXS) has recently seen significant insider trading activity, with CEO Todd P. Kelsey selling 2,000 shares. Investors often look to such events for cues about a company's health and trajectory. In light of this, let’s consider some key financial metrics and insights from InvestingPro that could help investors make more informed decisions.
The company's market capitalization stands at approximately $2.67 billion, reflecting its size and market value within the industry. Despite a modest revenue growth of 0.27% over the last twelve months as of Q1 2024, Plexus is grappling with a quarterly revenue decline of 10.18% in Q1 2024. This may signal challenges in the short term, potentially aligning with the CEO's decision to sell shares.
InvestingPro data also indicates a Price/Earnings (P/E) ratio of 18.2, which is adjusted for the last twelve months as of Q1 2024. This figure can help investors gauge whether the stock is overvalued or undervalued compared to its earnings. Additionally, the company's Gross Profit Margin stands at 9.31%, which is considered low, and aligns with the "InvestingPro Tip" that Plexus suffers from weak gross profit margins.
Two "InvestingPro Tips" suggest that while analysts expect Plexus to remain profitable this year, there are concerns as they have revised their earnings downwards for the upcoming period and anticipate a drop in net income. These insights may be particularly relevant given the CEO's recent stock sale and could reflect broader concerns about the company's future profitability.
For investors looking to delve deeper into Plexus Corp's financials and future outlook, InvestingPro offers additional tips that could provide a more comprehensive analysis. Use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, which includes a total of 6 additional "InvestingPro Tips" for Plexus Corp, available at https://www.investing.com/pro/PLXS. These tips could further aid in understanding the company's financial health and in making more informed investment decisions.
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