Plexus Shares Face a Confidence Test as Executives Sell

Plexus US7291321005

A notable divergence is emerging at Plexus. The electronics manufacturing services provider is posting record financial results and issuing upbeat guidance, yet a cluster of its top executives has been actively selling company stock. This activity presents investors with a puzzle: are these disposals a routine portfolio rebalancing, or do they signal underlying concerns ahead of a potential market correction?

Recent regulatory filings reveal a clear pattern of selling by Plexus insiders. Over the past three months, officers and directors have collectively disposed of shares worth more than $2 million.

Notable transactions include Chief Financial Officer Patrick John Jermain, who sold 2,000 shares on November 11 at $143.53 each, reducing his direct holding by 10.55%. Director Karen Marie Rapp and Chief Administrative Officer Angelo Michael Ninivaggi, Jr. have also executed sales amounting to tens of thousands of dollars. This wave of insider selling creates a contrasting narrative to the company's publicly stated performance.

Strong Quarterly and Annual Performance

The disposals come despite a demonstrably strong operational showing. For its fiscal fourth quarter of 2025, Plexus reported robust figures. Revenue met expectations at $1.058 billion. Adjusted earnings per share (EPS), however, surged to $2.14, significantly outperforming forecasts, aided by certain tax-related benefits.

Key annual metrics further underscore the company's health:
* Adjusted operating margin expanded by 40 basis points for the full fiscal 2025.
* Year-over-year growth in adjusted EPS exceeded 30%.
* The company generated a solid $97 million in free cash flow during the quarter.

Market Performance and Divergent Analyst Views

Currently trading around the $143 level, Plexus stock is consolidating near its 50-day moving average. It has posted a year-to-date gain of 5.55% and boasts a formidable five-year total return of approximately 95.6%.

Market experts are offering mixed interpretations of the current situation. Stifel Nicolaus maintains a price target of $150. Conversely, Sidoti downgraded the stock from a "Buy" to a "Neutral" rating, despite keeping the same $150 target. For the ongoing quarter, management's revenue guidance is set between $1.05 billion and $1.09 billion, with a projected operating margin of 5.6% to 6.0%. They anticipate EPS to land in the range of $1.66 to $1.81.

The central investment thesis now hinges on a single assessment: does the weight of the firm's excellent fundamental results outweigh the cautionary message potentially being sent by its own leadership's actions?