Oliver K. Mihm, Executive Vice President and Chief Operating Officer of Plexus Corp (NASDAQ:PLXS), recently sold a significant portion of his holdings in the company. According to a filing with the Securities and Exchange Commission, Mihm disposed of a total of 10,015 shares over two days, with the transactions occurring on November 6 and November 7.
The sales were executed at weighted average prices of $167.0579 and $165.6034 per share, respectively, resulting in a total transaction value of approximately $1,666,795. Following these transactions, Mihm retains ownership of 15,261 shares in Plexus Corp.
The sales were conducted in multiple trades, with prices ranging from $165.598 to $167.0653 per share. Mihm has committed to providing further details on the specific trades upon request to the SEC, the issuer, or any security holder of Plexus Corp.
In other recent news, Plexus Corp exhibited robust growth in its fiscal fourth quarter, with revenues increasing by 3% year-over-year and adjusted earnings per share surpassing previous guidance. This was attributed to stronger gross and operating margins, leading to a significant beat in non-GAAP EPS. Despite a projected 7% quarter-over-quarter decline in revenue for the first quarter of Fiscal Year 2025, Plexus provided a solid EPS forecast, supported by healthy margins and impressive free cash flow. Needham, an investment firm, maintained its Buy rating on Plexus and increased its price target to $162.00.
In contrast, KeyBanc initiated Plexus with a Sector Weight rating, acknowledging the company's strong long-term growth prospects but citing a high valuation. The firm also noted potential challenges in the post-inflationary period, including the possibility of slowed margin expansion.
Plexus Corp also announced a new $50 million stock buyback plan, following the conclusion of its ongoing initiative. The company secured over $500 million in contracts in the healthcare life sciences sector over the past four quarters, contributing to a growing funnel of qualified manufacturing opportunities worth $3.6 billion. Despite slower growth in the aerospace and defense sector due to supply constraints and customer design changes, Plexus Corp anticipates a mid-single-digit revenue increase in the fiscal fourth quarter. These are some of the recent developments for Plexus Corp.
InvestingPro Insights
The recent stock sale by Plexus Corp's Executive Vice President and Chief Operating Officer, Oliver K. Mihm, comes at a time when the company's stock is showing strong performance. According to InvestingPro data, Plexus has seen a significant return of 68.8% over the last year, with the stock trading near its 52-week high at 97.97% of that peak.
This robust performance is reflected in several InvestingPro Tips. For instance, the stock has shown a "Significant return over the last week" and a "Strong return over the last month," with 1-week and 1-month price total returns of 12.03% and 22.54%, respectively. These short-term gains are part of a broader trend, as evidenced by the "Large price uptick over the last six months," with a 6-month price total return of 53.87%.
However, investors should note that the stock's RSI suggests it may be in overbought territory, which could indicate a potential for a short-term pullback. Additionally, with a P/E ratio of 40.69, Plexus is "Trading at a high earnings multiple," which may raise questions about its current valuation.
It's worth noting that despite these high returns, Plexus "Does not pay a dividend to shareholders," focusing instead on growth and reinvestment. The company's market capitalization stands at $4.53 billion, with revenues of $3.96 billion in the last twelve months as of Q4 2024.
For investors seeking a more comprehensive analysis, InvestingPro offers 15 additional tips for Plexus Corp, providing a deeper insight into the company's financial health and market position.
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