Fabrinet (NYSE:FN) Shares Gap Down – What’s Next?

Fabrinet (NYSE:FN) shares gapped down before the market opened on Tuesday . The stock had previously closed at $598.58, but opened at $513.70. Fabrinet shares last traded at $487.3570, with a volume of 575,735 shares trading hands.

Key Headlines Impacting Fabrinet

Here are the key news stories impacting Fabrinet this week:

• Positive Sentiment: Fabrinet reported record fourth-quarter revenue of $1.316 billion, up 45% year over year and ahead of the $1.28 billion consensus estimate. Non-GAAP EPS of $4.10 exceeded estimates near $3.81-$3.85 and rose sharply from $2.65 a year earlier. Fabrinet Announces Fourth Quarter and Fiscal Year 2026 Financial Results
• Positive Sentiment: Fiscal 2026 revenue increased 36% to $4.64 billion, while GAAP net income rose to $473.0 million from $332.5 million. Management cited multiple growth drivers and said data-center demand remains exceptionally strong, with data-center revenue reportedly increasing 68%. Fabrinet CEO Sees No End in Sight to Data Center Demand
• Positive Sentiment: First-quarter fiscal 2027 revenue guidance of $1.375 billion to $1.425 billion is above the roughly $1.3 billion analyst consensus, while non-GAAP EPS guidance of $4.10 to $4.25 exceeds the $3.95 consensus. Rosenblatt and Needham reaffirmed Buy ratings with price targets of $750 and $650, respectively. Benzinga analyst coverage

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on FN. Wall Street Zen lowered Fabrinet from a “buy” rating to a “hold” rating in a research note on Monday, July 20th. Rosenblatt Securities reaffirmed a “buy” rating and issued a $750.00 price objective on shares of Fabrinet in a research report on Tuesday. Weiss Ratings lowered Fabrinet from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, August 12th. Northland Securities set a $800.00 target price on Fabrinet in a research report on Monday, April 20th. Finally, JPMorgan Chase & Co. lifted their target price on Fabrinet from $680.00 to $695.00 and gave the stock a “neutral” rating in a research report on Tuesday. Five research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat, Fabrinet presently has a consensus rating of “Moderate Buy” and an average price target of $649.50.

Fabrinet Stock Down 20.0%

The stock has a market cap of $17.15 billion, a P/E ratio of 41.31 and a beta of 1.23. The company’s 50 day moving average price is $526.47 and its two-hundred day moving average price is $569.40.

Fabrinet (NYSE:FN) last released its quarterly earnings data on Tuesday, August 18th. The technology company reported $4.10 EPS for the quarter, topping the consensus estimate of $3.81 by $0.29. The company had revenue of $1.32 billion for the quarter, compared to the consensus estimate of $1.28 billion. Fabrinet had a return on equity of 19.83% and a net margin of 9.94%.Fabrinet’s quarterly revenue was up 44.6% on a year-over-year basis. During the same period last year, the business posted $2.65 EPS. As a group, equities research analysts forecast that Fabrinet will post 12.97 earnings per share for the current year.

Insider Activity

In other news, Director Homa Bahrami sold 2,500 shares of the firm’s stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $711.91, for a total transaction of $1,779,775.00. Following the transaction, the director owned 16,233 shares in the company, valued at approximately $11,556,435.03. This trade represents a 13.35% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 0.24% of the company’s stock.

Institutional Trading of Fabrinet

Several institutional investors and hedge funds have recently made changes to their positions in FN. Core Wealth Advisors LLC purchased a new stake in Fabrinet in the fourth quarter worth about $25,000. Cassaday & Co Wealth Management LLC purchased a new position in Fabrinet during the 1st quarter valued at about $31,000. Harbour Investments Inc. increased its position in Fabrinet by 75.0% during the 4th quarter. Harbour Investments Inc. now owns 63 shares of the technology company’s stock valued at $29,000 after purchasing an additional 27 shares during the period. Creative Financial Designs Inc. ADV bought a new stake in shares of Fabrinet in the 4th quarter valued at about $32,000. Finally, Quarry LP raised its holdings in shares of Fabrinet by 300.0% in the 4th quarter. Quarry LP now owns 72 shares of the technology company’s stock valued at $33,000 after purchasing an additional 54 shares in the last quarter. 97.38% of the stock is currently owned by institutional investors.

About Fabrinet

Fabrinet is a global provider of advanced optical packaging and precision optical, electro‐mechanical and electronic manufacturing services (CEM). The company specializes in complex manufacturing processes for original equipment manufacturers (OEMs) in communications, data center, industrial, instrumentation and medical markets. Key capabilities include high‐precision fiber alignment, micro‐assembly, testing and diagnostics, and integration of electro‐optic subassemblies.

Incorporated in 2000, Fabrinet operates under a corporate structure headquartered in Singapore with additional regional offices and design centers in the Americas, Europe and Asia.