Insider Trading May 26, 2026 08:25 PM

FLEX CEO Sells Stake Amid Stock Gains; Company Plans Major Segment Spin-Off

Revathi Advaithi executed a planned sale of company shares while Flex Ltd. reports strong earnings and strategic moves, including an infrastructure unit separation.

By Avery Klein FLEX

Flex Ltd.'s Chief Executive Officer, Revathi Advaithi, recently sold a substantial block of company stock through a pre-arranged trading plan. This activity occurs as the firm's shares trade near their 52-week peak, following significant gains and positive operational updates, including strong quarterly earnings and plans to spin off its Cloud & Power infrastructure segment.

FLEX CEO Sells Stake Amid Stock Gains; Company Plans Major Segment Spin-Off
FLEX

Key Points

  • Financial Performance: Flex Ltd. reported robust Q4 and fiscal year 2026 earnings, with adjusted EPS hitting $0.93 (beating estimates) and revenues reaching $7.48 billion (exceeding expectations).
  • Strategic Restructuring: The company plans to spin off its Cloud & Power infrastructure segment into a new independent entity, a move that BofA Securities highlighted while raising its price target.
  • Industry Consolidation: Nextpower is acquiring the power conversion assets of Zigor Corporation and Apex Power for $80.5 million, signaling continued activity in the power infrastructure market.

Revathi Advaithi, Chief Executive Officer of FLEX LTD (NASDAQ:FLEX), executed a transaction on May 22, 2026, involving the sale of 83,500 ordinary shares. These sales accounted for an approximate total value of $11.1 million. The selling prices varied between $129.1839 and $134.0329 per share.

It is important to note that these transactions were executed under the parameters of a Rule 10b5-1 trading plan, which Ms. Advaithi had initially established on February 20, 2026. This structured selling process allows insiders to dispose of shares while adhering to specific regulatory guidelines.


The timing of this sale occurs against a backdrop of significant market performance for FLEX Ltd. Shares are currently trading at $143.24, which places them near the stock's 52-week high of $147.34. This upward trajectory follows substantial gains, representing a 237% increase over the past year.

Despite this strong market performance and recent price appreciation, an analysis from InvestingPro suggests that the stock may currently be valued higher than its intrinsic worth relative to its Fair Value. The company is reported to have a Price-to-Earnings (P/E) ratio of 61.82.


Following the disposition of these shares, Ms. Advaithi's direct holdings in ordinary stock amount to 605,522 shares. This total includes an additional component: 289,174 unvested restricted share units. These units represent a contingent right that must vest before they can be converted into actual shares.

Furthermore, Ms. Advaithi's indirect ownership stake is detailed through a grantor retained annuity trust (GRAT). Through this vehicle, she holds 815,262 ordinary shares for which she serves as the trustee.


In separate corporate news, Flex Ltd recently released its financial results for the fourth quarter and the full fiscal year of 2026. These earnings surpassed expectations set by Wall Street analysts. The company reported an adjusted earnings per share (EPS) of $0.93, exceeding the projected figure of $0.87. Revenue reached $7.48 billion, surpassing the anticipated revenue of $6.95 billion.

The firm is also undertaking a major strategic initiative: the planned spin-off of its Cloud & Power infrastructure segment into an independent company. This move has received attention from BofA Securities. The investment bank updated its assessment by raising the price target for Flex Ltd to $180, up from previous valuation of $75. BofA maintained a 'Buy' rating on the stock, citing factors such as the company’s emphasis on margin expansion and its commitment to shareholder value creation.


In related industry developments, Nextpower also announced a significant transaction. The company entered into a definitive agreement to acquire the power conversion assets of Zigor Corporation and its U.S.-based subsidiary, Apex Power. This acquisition is valued at approximately $80.5 million. The total consideration includes $46 million payable upon closing, alongside up to $34.5 million in potential earnouts.

Beyond the initial purchase price, Nextpower intends to allocate an additional $50 million specifically to support growth initiatives within the power conversion market. These multiple developments for both Flex Ltd. and Nextpower underscore notable strategic shifts and positive financial results across the industrial technology sector.

Risks

  • Valuation Concerns: An analysis indicates that FLEX Ltd.'s stock may be overvalued relative to its Fair Value, evidenced by a P/E ratio of 61.82.
  • Executive Selling: The CEO's sale of shares, even if planned via Rule 10b5-1, represents a significant liquidity event and potential shift in internal sentiment.
  • Spin-Off Execution: While the spin-off is viewed positively by analysts, the execution risk associated with separating core business units remains an inherent uncertainty.

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