Victor Tan, Regional President for the Asia-Pacific region at Plexus Corp (NASDAQ:PLXS), recently sold a significant portion of his stock holdings in the company. According to a filing with the Securities and Exchange Commission, Tan sold a total of 3,000 shares on November 6, 2024. The transactions were executed at prices ranging from $165.60 to $166.50 per share, amounting to a total sale value of approximately $497,700.
Following these transactions, Tan now holds 5,605 shares of Plexus Corp. The sales were conducted through direct ownership, with no involvement of equity swaps.
Plexus Corp, headquartered in Neenah, Wisconsin, is known for its work in the printed circuit boards industry. The company continues to be a key player in the manufacturing sector, providing a range of services to its clients worldwide.
In other recent news, Plexus Corp reported a 3% year-over-year increase in its FQ4 revenue, surpassing its own guidance. The company's adjusted earnings per share also exceeded the high end of its guidance, benefiting from stronger gross and operating margins. Despite a projected 7% quarter-over-quarter decline in revenue for FQ1 of Fiscal Year 2025, Plexus provided a solid EPS forecast, supported by healthy margins. The firm Needham maintained its Buy rating on Plexus and increased its price target to $162.00.
On the other hand, KeyBanc initiated coverage on Plexus with a neutral stance, citing the company's high valuation despite its strong long-term growth prospects. It also noted potential challenges in the post-inflationary period, including possible slowed margin expansion.
In addition, Plexus announced a new $50 million stock buyback plan, following the conclusion of its current initiative. The company also secured over $500 million in contracts in the healthcare life sciences sector over the past four quarters. Despite slower growth in the aerospace and defense sector due to supply constraints and customer design changes, Plexus anticipates a mid-single-digit revenue increase in the fiscal fourth quarter. These are some of the recent developments for Plexus Corp.
InvestingPro Insights
In light of Victor Tan's recent stock sale, it's worth examining Plexus Corp's current market position and performance. According to InvestingPro data, Plexus Corp (NASDAQ:PLXS) has a market capitalization of $4.53 billion, reflecting its significant presence in the printed circuit boards industry.
The company's stock has shown remarkable strength recently, with InvestingPro Tips highlighting a significant 12.03% return over the last week and an impressive 68.8% return over the past year. This robust performance aligns with the stock trading near its 52-week high, currently at 97.97% of that peak.
However, investors should note that Plexus is trading at a relatively high P/E ratio of 40.69, which may indicate that the stock is priced at a premium compared to its earnings. This valuation metric, combined with the InvestingPro Tip that the stock's RSI suggests it's in overbought territory, could explain why insiders like Tan might choose to sell some of their holdings.
Despite these valuation concerns, Plexus Corp remains profitable, with analysts predicting continued profitability this year. The company operates with a moderate level of debt, which could provide financial flexibility in its operations and growth strategies.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Plexus Corp, providing a deeper understanding of the company's financial health and market position.
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