Plexus Corp director sells $64,010 in company stock

In a recent transaction, Plexus Corp (NASDAQ:PLXS) director Karen Marie Rapp sold 500 shares of the company's stock, totaling $64,010. The sale took place on August 30, 2024, with the shares being sold at a price of $128.02 each. This transaction was executed in accordance with a pre-arranged Rule 10b5-1 trading plan, which was adopted on February 28, 2024.

Rule 10b5-1 plans allow company insiders to set up predetermined trading schedules for buying or selling stock to avoid accusations of trading on inside information. These plans are a common practice among corporate executives and directors to manage their stock holdings in a compliant manner.

Following the sale, Rapp's remaining holdings in Plexus Corp amount to 9,586 shares, indicating a continued vested interest in the company's performance. Plexus Corp, with its headquarters in Neenah, Wisconsin, is recognized in the manufacturing sector for its expertise in printed circuit boards.

Investors often monitor insider transactions as they can provide insights into the sentiment of company executives and directors regarding the stock's future performance. However, these transactions are not necessarily indicative of future price movements and can be influenced by a variety of factors, including personal financial management.

The recent transaction by Rapp will be filed with the Securities and Exchange Commission (SEC) and is publicly accessible for investors seeking to stay informed about the trading activities of Plexus Corp's insiders.

In other recent news, Plexus Corp announced a new $50M stock buyback plan following the expiration of its current initiative. This strategic move underscores the company's commitment to enhance shareholder value, reflecting its financial confidence. In addition, Plexus Corp reported robust Q3 financial performance, surpassing revenue expectations with $961 million, and generating a substantial $114 million of free cash flow. The company also projected a revenue growth of 9-12% for fiscal 2025. Despite growth below expectations in the aerospace and defense sector due to supply constraints and customer design changes, the company anticipates a mid-single-digit revenue increase in the fiscal fourth quarter. Among the recent developments, Plexus Corp's funnel of qualified manufacturing opportunities has grown to $3.6 billion, and the free cash flow for fiscal 2024 is projected to exceed $150 million. Lastly, the company discussed the impact of AI on power opportunities related to data centers, indicating potential growth in this area.

InvestingPro Insights

The recent insider sale by Plexus Corp (NASDAQ:PLXS) director Karen Marie Rapp has put the spotlight on the company's stock performance and financial metrics. According to InvestingPro data, Plexus Corp currently holds a market capitalization of $3.33 billion, with a Price/Earnings (P/E) ratio of 30.46. This valuation reflects the company's position within the competitive manufacturing sector, particularly in the realm of printed circuit boards.

Investors considering Plexus Corp's stock should note that the company has experienced a large price uptick over the last six months, with a 35.01% total return, indicating a strong short-term performance. Additionally, the company has shown a solid return over the last five years, which could be an attractive point for long-term investors. This is further supported by the fact that analysts predict the company will be profitable this year, as highlighted by one of the InvestingPro Tips.

However, another InvestingPro Tip suggests that Plexus Corp suffers from weak gross profit margins, currently standing at 9.34%, which could be a point of concern for investors looking at the company's ability to turn revenue into profit. Moreover, while the company operates with a moderate level of debt, it does not pay dividends to shareholders, potentially affecting its attractiveness to income-focused investors.

For those seeking more detailed analysis and additional insights, InvestingPro offers a range of tips on Plexus Corp, including earnings revisions by analysts and the company's profitability over the last twelve months. There are a total of 9 additional InvestingPro Tips available for Plexus Corp, which can be accessed through the dedicated InvestingPro page for the company.

Understanding these financial metrics and insights can provide investors with a more nuanced view of Plexus Corp's stock, especially in the context of insider transactions, which may or may not reflect broader company performance.

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