Insider Trades Midday Update – June 14, 2024

Insider Activities and Market Implications:

• Cleveland-Cliffs (CLF)
  • Douglas Taylor, Director at Cleveland-Cliffs, sold 36,000 shares valued at $535,222. The stock is currently trading at $14.6, down 1.78%.
  • Action: Consider selling or avoiding new positions due to insider selling and weak financial metrics. Revenue declined by -1.81%, gross margin at 5.48%, and EPS at -0.14. The P/E ratio of 19.81 and P/S ratio of 0.34 indicate possible undervaluation. The EV/EBITDA ratio of 5.85 suggests an attractive value opportunity.
  • Sector and Industry Insight: Operates in the steelmaking industry, focusing on North American automotive markets. Faces revenue challenges but shows potential undervaluation in financial metrics. Consider monitoring for a possible rebound in the steel industry.
• Flex (FLEX)
  • Significant insider selling by key executives:
    • Revathi Advaithi, CEO, sold 130,604 shares valued at $4,196,241.
    • Paul Lundstrom, CFO, sold 29,041 shares valued at $933,098.
    • Michael P. Hartung, Group President, sold 25,525 shares valued at $820,133.
  • The stock is currently trading at $31.36, down 2.06%.
  • Action: Consider holding if already invested, but be cautious. Revenue declined by -20.02%, gross margin at -0.64%, and EPS at 0.967896. The P/E ratio of 16.17 and P/S ratio of 0.53 suggest the stock may be undervalued. The EV/EBITDA ratio of 10.03 indicates relative undervaluation. Monitor closely for further signs of financial instability.
  • Sector and Industry Insight: Provides electronics design, manufacturing, and product management services across various sectors. Faces revenue and profitability challenges but shows potential undervaluation. Consider monitoring for improvements in financial performance and market conditions.