Zacks Investment Research Lowers Jabil Circuit Inc. (JBL) to Hold
Jabil Circuit Inc. (NYSE:JBL) was downgraded by Zacks Investment Research from a “strong-buy” rating to a “hold” rating in a report released on Tuesday.
According to Zacks, “Jabil Circuit initiated anew realignment programto significantly lower its expenses while maintaining its production capacities. Despite a financial impact of $195 million over the next two years, this initiative should place the company well on the growth trajectory. Moreover, strength in verticals like healthcare and packaging businesses are expected to be important growth drivers.Jabil expects Healthcare and packaging business core earnings to grow around 15% year over year in fiscal 2017. Also, DMS business performed better than guided owing to increased demand from Apple in the last reported quarter. However, at present, stagnating sales are an overhang for Jabil. This apart, customer concentration, intensifying competition and increasing investments remain concerns. Estimates have largely been stable ahead of the company's first quarter fiscal 2017 earnings release. “
Other research analysts also recently issued reports about the company. Standpoint Research downgraded Jabil Circuit from a “buy” rating to a “hold” rating and set a $26.00 price objective for the company. in a research report on Thursday, September 22nd. Deutsche Bank AG lifted their price objective on Jabil Circuit from $18.00 to $20.00 and gave the stock a “hold” rating in a research report on Thursday, September 22nd. Citigroup Inc. lifted their price objective on Jabil Circuit from $17.00 to $18.00 and gave the stock a “neutral” rating in a research report on Thursday, September 22nd. Needham & Company LLC downgraded Jabil Circuit from a “buy” rating to a “hold” rating in a research report on Thursday, September 22nd. Finally, Royal Bank Of Canada lifted their price objective on Jabil Circuit from $20.00 to $23.00 and gave the stock a “sector perform” rating in a research report on Thursday, September 22nd. Nine investment analysts have rated the stock with a hold rating and seven have given a buy rating to the company. Jabil Circuit has an average rating of “Hold” and a consensus target price of $30.93.
Jabil Circuit (NYSE:JBL) traded up 3.77% during midday trading on Tuesday, hitting $21.20. The stock had a trading volume of 1,862,026 shares. Jabil Circuit has a 12-month low of $16.78 and a 12-month high of $26.00. The firm has a market cap of $3.93 billion, a P/E ratio of 16.06 and a beta of 0.94. The stock has a 50-day moving average price of $21.38 and a 200 day moving average price of $20.27.
Jabil Circuit (NYSE:JBL) last posted its quarterly earnings results on Wednesday, September 21st. The company reported $0.28 earnings per share (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 company earned $4.40 billion during the quarter. During the same quarter in the previous year, the business posted $0.53 earnings per share. Jabil Circuit’s revenue was down 6.0% on a year-over-year basis. On average, equities analysts anticipate that Jabil Circuit will post $2.06 earnings per share for the current fiscal year.
The company also recently disclosed a quarterly dividend, which will be paid on Thursday, December 1st. Shareholders of record on Tuesday, November 15th will be issued a $0.08 dividend. The ex-dividend date is Thursday, November 10th. This represents a $0.32 dividend on an annualized basis and a yield of 1.57%. Jabil Circuit’s dividend payout ratio is currently 24.24%.
In other Jabil Circuit news, CEO Michael J. Loparco sold 2,000 shares of the business’s stock in a transaction on Thursday, September 15th. The shares were sold at an average price of $21.90, for a total value of $43,800.00. Following the transaction, the chief executive officer now owns 241,092 shares in the company, valued at approximately $5,279,914.80. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, President William E. Peters sold 20,000 shares of the business’s stock in a transaction on Tuesday, September 20th. The stock was 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. 2.90% of the stock is currently owned by company insiders.
A number of institutional investors have recently modified their holdings of the company. FMR LLC raised its position in shares of Jabil Circuit by 57.2% in the second quarter. FMR LLC now owns 16,352,044 shares of the company’s stock worth $302,022,000 after buying an additional 5,952,664 shares in the last quarter. Boston Partners raised its position in shares of Jabil Circuit by 13.4% in the third quarter. Boston Partners now owns 12,616,993 shares of the company’s stock worth $275,302,000 after buying an additional 1,488,126 shares in the last quarter. BlackRock Fund Advisors raised its position in shares of Jabil Circuit by 4.2% in the third quarter. BlackRock Fund Advisors now owns 6,943,708 shares of the company’s stock worth $151,512,000 after buying an additional 281,669 shares in the last quarter. Fairpointe Capital LLC raised its position in shares of Jabil Circuit by 14.6% in the second quarter. Fairpointe Capital LLC now owns 6,716,504 shares of the company’s stock worth $124,054,000 after buying an additional 857,238 shares in the last quarter. Finally, BlackRock Institutional Trust Company N.A. raised its stake in shares of Jabil Circuit by 4.4% in the second quarter. BlackRock Institutional Trust Company N.A. now owns 5,818,253 shares of the company’s stock worth $107,463,000 after buying an additional 244,250 shares during the period. Hedge funds and other institutional investors own 89.47% 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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