Fabrinet (FN) Shares Gap Down Following Analyst Downgrade
Shares of Fabrinet (NYSE:FN) gapped down before the market opened on Tuesday after Needham & lowered their price target on the stock from $60.00 to $45.00. The stock had previously closed at $29.16, but opened at $28.88. Needham & currently has a strong-buy rating on the stock. Fabrinet shares last traded at $28.88, with a volume of 2330248 shares changing hands.
A number of other brokerages have also recently issued reports on FN. B. Riley reissued a “buy” rating and issued a $46.50 price objective on shares of Fabrinet in a research note on Monday, August 28th. BidaskClub raised shares of Fabrinet from a “sell” rating to a “hold” rating in a research note on Sunday, July 16th. Piper Jaffray Companies reissued an “overweight” rating and issued a $51.00 price objective (down from $55.00) on shares of Fabrinet in a research note on Tuesday, August 22nd. J P Morgan Chase & Co cut shares of Fabrinet from an “overweight” rating to a “neutral” rating and set a $42.00 price objective for the company. in a research note on Tuesday. Finally, Zacks Investment Research cut shares of Fabrinet from a “hold” rating to a “sell” rating in a research note on Thursday, August 24th. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating, four have given a buy rating and one has given a strong buy rating to the company. The company has a consensus rating of “Buy” and an average target price of $46.42.
In other Fabrinet news, COO Harpal Gill sold 50,000 shares of the stock in a transaction on Wednesday, August 30th. The shares were sold at an average price of $39.07, for a total transaction of $1,953,500.00. Following the completion of the transaction, the chief operating officer now owns 194,193 shares in the company, valued at $7,587,120.51. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO David T. Mitchell sold 105,000 shares of the stock in a transaction on Friday, August 25th. The shares were sold at an average price of $38.63, for a total transaction of $4,056,150.00. Following the transaction, the chief executive officer now owns 111,057 shares of the company’s stock, valued at approximately $4,290,131.91. The disclosure for this sale can be found here. Insiders have sold 207,500 shares of company stock valued at $8,034,350 over the last ninety days. 3.30% of the stock is currently owned by corporate insiders.
Hedge funds have recently added to or reduced their stakes in the business. Schwab Charles Investment Management Inc. lifted its position in Fabrinet by 7.9% during the first quarter. Schwab Charles Investment Management Inc. now owns 200,746 shares of the technology company’s stock valued at $8,438,000 after purchasing an additional 14,706 shares during the last quarter. Royce & Associates LP lifted its position in Fabrinet by 39.9% during the second quarter. Royce & Associates LP now owns 1,396,450 shares of the technology company’s stock valued at $59,573,000 after purchasing an additional 398,535 shares during the last quarter. BlackRock Inc. lifted its position in Fabrinet by 0.4% during the second quarter. BlackRock Inc. now owns 4,328,966 shares of the technology company’s stock valued at $184,673,000 after purchasing an additional 17,385 shares during the last quarter. PNC Financial Services Group Inc. lifted its position in Fabrinet by 63.3% during the first quarter. PNC Financial Services Group Inc. now owns 3,038 shares of the technology company’s stock valued at $129,000 after purchasing an additional 1,178 shares during the last quarter. Finally, Capital Management Associates NY lifted its position in Fabrinet by 63.5% during the second quarter. Capital Management Associates NY now owns 10,300 shares of the technology company’s stock valued at $439,000 after purchasing an additional 4,000 shares during the last quarter. Institutional investors and hedge funds own 94.59% of the company’s stock.
The company has a current ratio of 2.57, a quick ratio of 1.80 and a debt-to-equity ratio of 0.03. The firm has a market cap of $1,110.00, a PE ratio of 12.55, a P/E/G ratio of 0.97 and a beta of 1.03.
Fabrinet (NYSE:FN) last released its quarterly earnings data on Monday, August 21st. The technology company reported $0.72 EPS for the quarter, missing the Thomson Reuters’ consensus estimate of $0.83 by ($0.11). The business had revenue of $370.50 million for the quarter, compared to the consensus estimate of $363.41 million. Fabrinet had a net margin of 6.84% and a return on equity of 15.32%. Fabrinet’s revenue for the quarter was up 34.0% compared to the same quarter last year. During the same quarter last year, the business earned $0.60 EPS. analysts anticipate that Fabrinet will post 2.78 earnings per share for the current year.
Fabrinet announced that its board has initiated a stock buyback program on Monday, August 21st that permits the company to repurchase $30.00 million in shares. This repurchase authorization permits the technology company to buy up to 21% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s management believes its shares are undervalued.
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Fabrinet provides optical packaging and precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers (OEMs) of products, such as optical communication components, modules and sub-systems, industrial lasers, medical devices and sensors. The Company offers a range of optical and electro-mechanical capabilities across the manufacturing process, including process design and engineering, supply chain management, manufacturing, complex printed circuit board assembly, advanced packaging, integration, final assembly and test.
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