Plexus Corp. (PLXS) Cut to Sell at Zacks Investment Research

Zacks Investment Research cut shares of Plexus Corp. (NASDAQ:PLXS) from a hold rating to a sell rating in a research note released on Monday morning.

According to Zacks, “Plexus reported mixed third quarter 2017 results, wherein earnings beat estimates but revenues fell short of expectations. Shares have also underperformed the industry on a year-to-date basis. A mature electronic manufacturing services market and intense competition remain headwinds. Additionally, the company expects weakness in the Defense and Aerospace market to impact business in the near term.  Moreover, Plexus still depends on a few large customers for a major part of its revenues. However, we believe new program wins, together with global expansion, will drive growth over the long term. Additionally, the consolidation of the company’s production facilities in low-cost areas is expected to boost margins, going forward.”

Several other research analysts also recently weighed in on PLXS. ValuEngine downgraded shares of Plexus Corp. from a buy rating to a hold rating in a research report on Friday, July 14th. Stifel Nicolaus reissued a hold rating and issued a $54.00 target price (up from $50.00) on shares of Plexus Corp. in a research report on Friday, July 21st. Deutsche Bank AG lifted their target price on shares of Plexus Corp. from $50.00 to $54.00 and gave the stock a hold rating in a research report on Friday, July 21st. Citigroup Inc. lifted their target price on shares of Plexus Corp. from $56.00 to $59.00 and gave the stock a neutral rating in a research report on Friday, July 21st. Finally, BidaskClub downgraded shares of Plexus Corp. from a hold rating to a sell rating in a research report on Saturday, August 5th. Two investment analysts have rated the stock with a sell rating, seven have issued a hold rating and two have assigned a buy rating to the company. The company presently has an average rating of Hold and an average target price of $57.86.

Plexus Corp. (NASDAQ:PLXS) last released its earnings results on Wednesday, October 25th. The technology company reported $0.84 earnings per share for the quarter, topping the consensus estimate of $0.82 by $0.02. The business had revenue of $670.00 million for the quarter, compared to the consensus estimate of $676.23 million. Plexus Corp. had a net margin of 4.43% and a return on equity of 11.48%. The firm’s quarterly revenue was up 2.6% compared to the same quarter last year. During the same period last year, the firm posted $0.82 earnings per share.

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In related news, CAO Angelo Michael Ninivaggi, Jr. sold 8,750 shares of the business’s stock in a transaction that occurred on Monday, August 21st. The shares were sold at an average price of $49.38, for a total transaction of $432,075.00. Following the transaction, the chief accounting officer now directly owns 17,009 shares of the company’s stock, valued at $839,904.42. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Todd P. Kelsey sold 4,000 shares of the business’s stock in a transaction that occurred on Wednesday, November 1st. The shares were sold at an average price of $61.71, for a total transaction of $246,840.00. Following the transaction, the chief executive officer now directly owns 58,425 shares in the company, valued at $3,605,406.75. The disclosure for this sale can be found here. Insiders have sold 74,252 shares of company stock worth $4,307,064 over the last ninety days. 4.30% of the stock is currently owned by insiders.

A number of institutional investors and hedge funds have recently made changes to their positions in PLXS. Riverhead Capital Management LLC grew its position in Plexus Corp. by 69.0% in the second quarter. Riverhead Capital Management LLC now owns 2,366 shares of the technology company’s stock worth $124,000 after acquiring an additional 966 shares in the last quarter. Cambridge Investment Research Advisors Inc. bought a new stake in Plexus Corp. in the first quarter worth approximately $200,000. Neuberger Berman Group LLC grew its position in Plexus Corp. by 0.8% in the second quarter. Neuberger Berman Group LLC now owns 3,834 shares of the technology company’s stock worth $202,000 after acquiring an additional 31 shares in the last quarter. SG Americas Securities LLC grew its position in Plexus Corp. by 20.0% in the first quarter. SG Americas Securities LLC now owns 3,655 shares of the technology company’s stock worth $211,000 after acquiring an additional 609 shares in the last quarter. Finally, Amalgamated Bank grew its position in Plexus Corp. by 1.4% in the second quarter. Amalgamated Bank now owns 4,582 shares of the technology company’s stock worth $241,000 after acquiring an additional 65 shares in the last quarter. 94.06% of the stock is currently owned by hedge funds and other institutional investors.

About Plexus Corp.

Plexus Corp. (Plexus) and its subsidiaries are engaged in the electronic manufacturing services (EMS) industry. The Company delivers end-to-end solutions for customers in the Americas (AMER), Europe, Middle East, and Africa (EMEA) and Asia-Pacific (APAC) regions. The Company’s segments are AMER, APAC and EMEA.

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