Jermain Patrick John, Executive Vice President and Chief Financial Officer of Plexus Corp (NASDAQ:PLXS), recently executed significant stock sales, according to a regulatory filing. On November 6, Mr. John sold a total of 2,643 shares of Plexus Corp common stock. The transactions were carried out in two batches, with prices ranging from $165.8408 to $166.6691 per share, resulting in a total transaction value of approximately $439,578.
Following these sales, Mr. John holds 21,959 shares in direct ownership. Additionally, he retains 3,587 shares through Plexus Corp's 401(k) Retirement Plan, as reported by the plan's trustee.
In other recent news, Plexus Corp reported a 3% year-over-year increase in fourth quarter revenue, surpassing its own guidance range. This was accompanied by a significant beat in non-GAAP earnings per share, credited to stronger gross and operating margins. Investment firm Needham maintained its Buy rating on Plexus, raising its price target to $162.00 from $144.00, citing solid growth potential and strong cash attributes.
Meanwhile, KeyBanc initiated coverage on Plexus with a Sector Weight rating, acknowledging the company's strong long-term growth prospects despite a high valuation. The firm also highlighted Plexus's targeted high single-digit percentage revenue growth, margin improvements, and share repurchase strategy.
Benchmark, another financial advisory firm, maintained a Buy rating for Plexus Corp and raised its price target to $150 from $145, despite potential impacts on near-term revenues due to the ongoing Boeing (NYSE:BA) strike. Plexus has also 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.
Lastly, Plexus announced a new $50 million stock buyback plan, set to commence following the conclusion of its current initiative. This move reflects Plexus's financial confidence and commitment to enhancing shareholder value.
InvestingPro Insights
The recent stock sales by Plexus Corp's CFO Jermain Patrick John come at a time when the company's stock is showing strong performance. According to InvestingPro data, Plexus has seen a remarkable 68.8% price total return over the past year, with a significant 53.87% increase in the last six months alone. This upward trend is further emphasized by the stock trading near its 52-week high, with the current price at 97.97% of that peak.
InvestingPro Tips highlight that Plexus is currently trading at a high earnings multiple, with a P/E ratio of 40.69. This valuation suggests investors are pricing in strong future growth expectations. However, it's worth noting that the company suffers from weak gross profit margins, which stood at 9.56% for the last twelve months as of Q4 2023.
Despite these mixed signals, two analysts have revised their earnings upwards for the upcoming period, indicating positive sentiment about the company's near-term prospects. For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips that could provide valuable insights into Plexus Corp's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.