Todd P. Kelsey, President and CEO of Plexus Corp (NASDAQ:PLXS), has sold a significant portion of his holdings in the company, according to a recent filing with the Securities and Exchange Commission. On November 4 and November 6, Kelsey sold a total of 8,000 shares of Plexus common stock. The transactions were executed at prices ranging from $148.12 to $165.07 per share, yielding a total value of approximately $1.25 million.
Following these sales, Kelsey retains ownership of 77,026 shares of the company. These transactions are part of routine portfolio adjustments by company insiders and are often closely watched by investors for potential insights into the executive's outlook on the company's future performance.
In other recent news, Plexus Corp reported a 3% year-over-year increase in fourth-quarter revenue, surpassing its own guidance range. The company's adjusted earnings per share also exceeded the high end of its guidance, which was attributed to stronger gross and operating margins. Despite a projected 7% quarter-over-quarter decline in revenue for the first quarter of Fiscal Year 2025, Plexus provided a solid earnings forecast, supported by continued healthy margins.
Investment firms Needham and Benchmark have raised their price targets for Plexus to $162 and $150 respectively, maintaining a Buy rating for the company. Meanwhile, KeyBanc initiated coverage on Plexus with a Sector Weight rating, citing a high valuation despite strong long-term growth prospects.
Plexus Corp also announced a new $50 million stock buyback plan following the conclusion of its ongoing initiative. In the healthcare life sciences sector, Plexus secured over $500 million in contracts 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.
InvestingPro Insights
The recent stock sales by Plexus Corp's CEO Todd P. Kelsey come at a time when the company's stock is trading near its 52-week high, as indicated by InvestingPro data. This aligns with one of the InvestingPro Tips, which notes that Plexus is "Trading near 52-week high." The stock's strong performance is further evidenced by its impressive returns, with a 52.52% price total return over the past year and a 43.05% return over the last six months.
However, investors should be aware that the stock's Relative Strength Index (RSI) suggests it may be in overbought territory, according to another InvestingPro Tip. This could potentially explain the timing of Kelsey's stock sales, as executives often take advantage of high stock prices to realize gains.
It's worth noting that despite the recent sales, Plexus Corp maintains a solid financial position. The company's market capitalization stands at $4.55 billion, and it has been profitable over the last twelve months. Additionally, InvestingPro Tips indicate that Plexus "Operates with a moderate level of debt," which could be seen as a positive factor for long-term stability.
For investors seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for Plexus Corp, providing a deeper understanding of the company's financial health and market position.
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