Zacks Investment Research Downgrades Plexus (NASDAQ:PLXS) to Sell

Zacks Investment Research lowered shares of Plexus (NASDAQ:PLXS) from a hold rating to a sell rating in a research report report published on Wednesday, Zacks.com reports. Zacks Investment Research currently has $65.00 target price on the technology company’s stock.

According to Zacks, “Plexus continues to benefit from strong end-market demand in Healthcare/Life Sciences and Aerospace/Defense segments. Robust backlog of engineering contracts bodes well for the company in the long haul. Global expansion and new program wins are key positives for Plexus. Notably, shares have outperformed the industry on a year-to-date basis. Meanwhile, estimates have been stable ahead of the company’s third-quarter earnings release. However, the company has mixed record of earnings surprises in recent quarters. Its dependence on a few large customers for a major part of its revenues is a concern. Sluggish Communications end market is expected to negatively impact Plexus’ top line. Further, weakness in semiconductor capital equipment space is an overhang.”

A number of other analysts also recently issued reports on PLXS. Needham & Company LLC raised their price target on Lam Research from $180.00 to $215.00 and gave the stock a buy rating in a research report on Tuesday, April 23rd. BidaskClub downgraded Weyco Group from a sell rating to a strong sell rating in a research report on Saturday, July 13th. Finally, Sidoti set a $72.00 price target on Plexus and gave the stock a buy rating in a research report on Friday, June 14th. One investment analyst has rated the stock with a sell rating, one has issued a hold rating and three have assigned a buy rating to the stock. Plexus has a consensus rating of Hold and a consensus price target of $69.67.



PLXS stock opened at $56.05 on Wednesday. The firm has a fifty day simple moving average of $55.87. Plexus has a fifty-two week low of $47.63 and a fifty-two week high of $66.98. The company has a debt-to-equity ratio of 0.22, a quick ratio of 0.88 and a current ratio of 1.78. The stock has a market capitalization of $1.69 billion, a price-to-earnings ratio of 16.15 and a beta of 0.99.

Plexus (NASDAQ:PLXS) last posted its earnings results on Wednesday, July 17th. The technology company reported $0.81 earnings per share for the quarter, meeting analysts’ consensus estimates of $0.81. Plexus had a net margin of 4.62% and a return on equity of 12.40%. The firm had revenue of $799.64 million during the quarter, compared to analyst estimates of $783.30 million. During the same period last year, the firm posted $0.79 earnings per share. Plexus’s revenue for the quarter was up 10.1% compared to the same quarter last year. As a group, research analysts anticipate that Plexus will post 3.37 EPS for the current fiscal year.

In related news, Director Michael V. Schrock sold 5,000 shares of the firm’s stock in a transaction on Tuesday, April 23rd. The stock was sold at an average price of $60.47, for a total value of $302,350.00. Following the completion of the sale, the director now directly owns 32,894 shares in the company, valued at $1,989,100.18. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, CFO Patrick John Jermain sold 4,475 shares of the firm’s stock in a transaction on Thursday, May 2nd. The stock was sold at an average price of $60.41, for a total value of $270,334.75. Following the completion of the sale, the chief financial officer now owns 33,611 shares of the company’s stock, valued at $2,030,440.51. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 24,493 shares of company stock valued at $1,485,704. 3.90% of the stock is owned by corporate insiders.

Several large investors have recently added to or reduced their stakes in the company. Great West Life Assurance Co. Can lifted its position in Plexus by 3.2% during the 4th quarter. Great West Life Assurance Co. Can now owns 41,276 shares of the technology company’s stock worth $1,947,000 after buying an additional 1,294 shares in the last quarter. Hsbc Holdings PLC increased its stake in shares of Plexus by 15.6% during the 4th quarter. Hsbc Holdings PLC now owns 7,369 shares of the technology company’s stock worth $376,000 after purchasing an additional 995 shares during the last quarter. Geode Capital Management LLC increased its stake in shares of Plexus by 3.4% during the 4th quarter. Geode Capital Management LLC now owns 386,839 shares of the technology company’s stock worth $19,759,000 after purchasing an additional 12,686 shares during the last quarter. Mackay Shields LLC acquired a new position in shares of Plexus during the 4th quarter worth about $363,000. Finally, Two Sigma Investments LP acquired a new position in shares of Plexus during the 4th quarter worth about $780,000. Institutional investors and hedge funds own 94.51% of the company’s stock.

About Plexus

Plexus Corp., together with its subsidiaries, provides electronic manufacturing services in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. It offers design and development, supply chain, new product introduction, and manufacturing solutions, as well as aftermarket services. The company provides its solutions to companies in the healthcare and life sciences, industrial and commercial, communications, and aerospace and defense sectors.

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