Flextronics International Ltd. (NASDAQ:FLEX) Lowered to “Sell” at Zacks Investment Research
Zacks Investment Research downgraded shares of Flextronics International Ltd. (NASDAQ:FLEX) from a hold rating to a sell rating in a research report sent to investors on Thursday.
According to Zacks, “Flex’s ongoing transition to higher margin businesses is expected to hurt top-line growth in the near term. Sluggish growth expectation from the communication & telecom end-markets are also anticipated hurt revenues. Moreover, continuing investments on designing and innovation related to the “Sketch-to-Scale” portfolio transition is forecasted to keep margins under pressure. Further, leveraged balance sheet is a significant concern. Higher interest expense as well as tax rate is projected to negatively impact the bottom line. Nevertheless, Flex’s diverse end-market and expanding partner base is positive. However, the stock has underperformed the broader market on a year-to-date basis. Meanwhile, estimates have been going down lately ahead of the company's Q1 earnings release. The company has mixed record of earnings surprises in the recent quarters.”
A number of other research firms also recently commented on FLEX. Craig Hallum raised shares of Flextronics International from a hold rating to a buy rating in a research report on Friday, May 12th. Macquarie started coverage on shares of Flextronics International in a research report on Thursday, June 22nd. They issued a neutral rating on the stock. Bank of America Corporation reaffirmed a buy rating and issued a $19.50 target price (up from $17.50) on shares of Flextronics International in a research report on Wednesday, May 17th. ValuEngine downgraded shares of Flextronics International from a buy rating to a hold rating in a research report on Friday, July 14th. Finally, Needham & Company LLC increased their target price on shares of Flextronics International from $17.00 to $19.00 and gave the company a buy rating in a research report on Tuesday, July 18th. Two analysts have rated the stock with a sell rating, three have given a hold rating, seven have issued a buy rating and one has assigned a strong buy rating to the company’s stock. The company has a consensus rating of Buy and an average target price of $17.75.
Shares of Flextronics International (NASDAQ FLEX) opened at 16.29 on Thursday. The company has a 50-day moving average of $16.69 and a 200-day moving average of $16.29. Flextronics International has a 12-month low of $12.30 and a 12-month high of $17.76. The stock has a market capitalization of $8.77 billion, a P/E ratio of 25.90 and a beta of 0.80.
Flextronics International (NASDAQ:FLEX) last posted its earnings results on Thursday, July 27th. The technology company reported $0.24 EPS for the quarter, beating the Zacks’ consensus estimate of $0.22 by $0.02. The firm had revenue of $6.01 billion for the quarter, compared to the consensus estimate of $5.91 billion. Flextronics International had a net margin of 1.41% and a return on equity of 20.79%. The company’s revenue was up 2.2% on a year-over-year basis. During the same period last year, the firm posted $0.27 EPS. Equities analysts expect that Flextronics International will post $1.20 earnings per share for the current fiscal year.
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In other Flextronics International news, Director William D. Watkins sold 30,000 shares of the firm’s stock in a transaction on Friday, May 5th. The shares were sold at an average price of $15.11, for a total transaction of $453,300.00. The sale was disclosed in a filing with the SEC, which is available through this hyperlink. Also, CAO David P. Bennett sold 5,656 shares of the firm’s stock in a transaction on Tuesday, June 13th. The stock was sold at an average price of $16.61, for a total transaction of $93,946.16. Following the transaction, the chief accounting officer now directly owns 62,974 shares in the company, valued at $1,045,998.14. The disclosure for this sale can be found here. Insiders have sold a total of 1,138,609 shares of company stock worth $18,637,367 over the last three months. 0.83% of the stock is currently owned by insiders.
A number of hedge funds and other institutional investors have recently modified their holdings of FLEX. Canada Pension Plan Investment Board boosted its stake in Flextronics International by 29,761.6% in the first quarter. Canada Pension Plan Investment Board now owns 21,799 shares of the technology company’s stock valued at $366,000 after buying an additional 21,726 shares during the period. Oregon Public Employees Retirement Fund boosted its stake in Flextronics International by 12.5% in the first quarter. Oregon Public Employees Retirement Fund now owns 179,612 shares of the technology company’s stock valued at $3,017,000 after buying an additional 20,000 shares during the period. Sumitomo Mitsui Asset Management Company LTD boosted its stake in Flextronics International by 7.7% in the first quarter. Sumitomo Mitsui Asset Management Company LTD now owns 42,759 shares of the technology company’s stock valued at $718,000 after buying an additional 3,049 shares during the period. IFP Advisors Inc boosted its stake in Flextronics International by 56.6% in the first quarter. IFP Advisors Inc now owns 23,793 shares of the technology company’s stock valued at $400,000 after buying an additional 8,597 shares during the period. Finally, Meritage Portfolio Management boosted its stake in Flextronics International by 0.6% in the first quarter. Meritage Portfolio Management now owns 335,764 shares of the technology company’s stock valued at $5,641,000 after buying an additional 1,980 shares during the period. 90.47% of the stock is currently owned by institutional investors.
Flextronics International Company Profile
Flex Ltd, formerly Flextronics International Ltd. provides design, engineering, manufacturing, and supply chain services and solutions. The Company designs, builds, ships and services packaged consumer electronics and industrial products for original equipment manufacturers (OEMs). Its segments include High Reliability Solutions (HRS), Consumer Technologies Group (CTG), Industrial and Emerging Industries (IEI) and Communications & Enterprise Compute (CEC).
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