Insiders Active in Plexus (PLXS)
Plexus (PLXS) with a rare insider buy on 8/18 with a director adding $250K in stock at $88.02. The last open market buy was in 2018 when a different director bought $600K in stock at $60. PLXS shares are trading higher by 17% for the year and breaking out of a multi-week base with room to run back to the highs near $100. The strong trend from the March 2020 lows has room up to $120 from the recent range breakout. The $2.53B company trades 15.95X earnings, 0.75X sales, and 12.25X FCF. PLXS provides manufacturing services including product development, supply chain and manufacturing solutions for the life sciences, industrial, aerospace, and communications markets. PLXS is continuing to win new manufacturing projects as the industrial and healthcare markets return to normalcy following COVID. They added new projects in cardiac imaging, diabetes monitoring, self-serve kiosk, industrial controllers, and a large defense program. PLXS is also noting that they’re seeing more engineering wins during the quarter, a sign that manufacturing growth is picking up again. One area that PLXS has been expanding more into is high-margin aftermarket services where they are winning new logos. Analysts have an average target for shares of $104 with a Street High $110 from Needham. The company thinks demand will push out into future quarters as the firm continues to target 9%-12% growth beyond FY21. They are also positive on Plexus’s recent wins activity, the ongoing strength in semi-cap, and a recovery in the elective health care business. Hedge fund ownership rose 6% last quarter.