Jabil Circuit Inc. (JBL) Upgraded by Zacks Investment Research to “Strong-Buy”
Zacks Investment Research upgraded shares of Jabil Circuit Inc. (NYSE:JBL) from a hold rating to a strong-buy rating in a research report sent to investors on Wednesday morning. The firm currently has $25.00 price objective on the stock.
According to Zacks, “Jabil Circuit reported better-than-expected fourth quarter fiscal 2016 results with both the top and bottom lines beating expectations. However, a weak macroeconomic scenario resulted in a year-over- year decline on both counts. Nonetheless, the company’s DMS business performed better than guided owing to increased demand from Apple in the quarter. Going ahead, opportunities in the healthcare and packaging business should drive top-line growth. The company recently initiated a restructuring program in order to optimize its use of resources. We expect this to be a growth driver in the long run. However, at present, stagnating sales are an overhang for Jabil. This apart, customer concentration, intensifying competition and increasing investments remain concerns.”
A number of other brokerages also recently commented on JBL. Needham & Company LLC downgraded shares of Jabil Circuit from a buy rating to a hold rating in a research note on Thursday, September 22nd. Bank of America Corp. reissued a buy rating on shares of Jabil Circuit in a research note on Thursday, June 16th. B. Riley reissued a buy rating and issued a $27.00 target price (up previously from $22.00) on shares of Jabil Circuit in a research note on Monday, September 19th. Citigroup Inc. raised their target price on shares of Jabil Circuit from $17.00 to $18.00 and gave the company a neutral rating in a research note on Thursday, September 22nd. Finally, Argus reissued a hold rating on shares of Jabil Circuit in a research note on Thursday, June 16th. Nine investment analysts have rated the stock with a hold rating, six have assigned a buy rating and one has issued a strong buy rating to the company. The company presently has a consensus rating of Buy and a consensus target price of $30.79.
Shares of Jabil Circuit (NYSE:JBL) traded down 1.14% during midday trading on Wednesday, hitting $21.75. 650,596 shares of the stock traded hands. Jabil Circuit has a one year low of $16.78 and a one year high of $26.00. The stock has a market cap of $4.11 billion, a price-to-earnings ratio of 16.48 and a beta of 0.87. The firm has a 50-day moving average price of $21.49 and a 200 day moving average price of $19.51.
Jabil Circuit (NYSE:JBL) last issued its earnings results on Wednesday, September 21st. The company reported $0.28 EPS for the quarter, beating the Zacks’ consensus estimate of $0.25 by $0.03. Jabil Circuit had a net margin of 1.38% and a return on equity of 12.22%. The business had revenue of $4.40 billion for the quarter. During the same period in the prior year, the business posted $0.53 EPS. The business’s revenue was down 6.0% on a year-over-year basis. Analysts anticipate that Jabil Circuit will post $2.07 earnings per share for the current year.
The company also recently declared a quarterly dividend, which was paid on Thursday, September 1st. Stockholders of record on Monday, August 15th were issued a dividend of $0.08 per share. The ex-dividend date of this dividend was Thursday, August 11th. This represents a $0.32 dividend on an annualized basis and a dividend yield of 1.45%. Jabil Circuit’s dividend payout ratio is currently 24.24%.
In other news, CEO Michael J. Loparco sold 5,000 shares of the business’s stock in a transaction that occurred on Tuesday, July 26th. The shares were sold at an average price of $20.23, for a total transaction of $101,150.00. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, President William E. Peters sold 20,000 shares of the business’s stock in a transaction that occurred on Tuesday, September 20th. The shares were sold at an average price of $23.25, for a total transaction of $465,000.00. The disclosure for this sale can be found here. Insiders own 2.90% of the company’s stock.
Several large investors have recently added to or reduced their stakes in the stock. Quantitative Systematic Strategies LLC bought a new position in shares of Jabil Circuit during the second quarter worth approximately $181,000. Calvert Investment Management Inc. bought a new position in shares of Jabil Circuit during the second quarter worth approximately $201,000. LS Investment Advisors LLC increased its position in shares of Jabil Circuit by 71.2% in the second quarter. LS Investment Advisors LLC now owns 11,551 shares of the company’s stock worth $213,000 after buying an additional 4,802 shares during the last quarter. LPL Financial LLC increased its position in shares of Jabil Circuit by 22.8% in the first quarter. LPL Financial LLC now owns 11,912 shares of the company’s stock worth $222,000 after buying an additional 2,209 shares during the last quarter. Finally, World Asset Management Inc increased its position in shares of Jabil Circuit by 1.0% in the second quarter. World Asset Management Inc now owns 11,987 shares of the company’s stock worth $221,000 after buying an additional 120 shares during the last quarter. Institutional investors and hedge funds own 89.92% of the company’s stock.
About Jabil Circuit
Jabil Circuit, Inc provides electronic manufacturing services and solutions. The Company provides electronic design, production and product management services to companies in the aerospace, automotive, computing, defense, digital home, energy, healthcare, industrial, instrumentation, lifestyles, mobility, mold, networking, packaging, peripherals, storage, telecommunications and wearable technology industries.
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