Fabrinet (FN) Rating Lowered to Sell at Zacks Investment Research

Fabrinet (NYSE:FN) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research report issued to clients and investors on Friday.

According to Zacks, “Fabrinet provides precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers of complex products, such as optical communication components, modules and sub-systems, industrial lasers and sensors. The Company offers a broad range of advanced optical capabilities across the entire manufacturing process, including process engineering, design for manufacturability, supply chain management, manufacturing, final assembly and test. Fabrinet manufactures, assembles, and tests products for customers at its main manufacturing facilities in Bangkok, Thailand. The Company designs and manufactures its own bulk optical materials and components at its facilities in Fuzhou, the People’s Republic of China, and New Jersey, USA. “

FN has been the subject of a number of other reports. BidaskClub downgraded shares of Fabrinet from a “hold” rating to a “sell” rating in a report on Monday, July 31st. ValuEngine downgraded shares of Fabrinet from a “buy” rating to a “hold” rating in a report on Monday, August 14th. Needham & Company LLC reissued a “buy” rating on shares of Fabrinet in a research note on Thursday, October 12th. Northland Securities set a $50.00 price target on shares of Fabrinet and gave the stock a “buy” rating in a research note on Tuesday, August 22nd. Finally, Stifel Nicolaus reissued a “buy” rating and issued a $48.00 price target on shares of Fabrinet in a research note on Friday, July 14th. Two equities research analysts have rated the stock with a sell rating, two have issued a hold rating, four have issued a buy rating and one has given a strong buy rating to the stock. Fabrinet presently has a consensus rating of “Hold” and an average target price of $46.42.

Shares of Fabrinet (NYSE:FN) traded up $0.28 during trading hours on Friday, reaching $31.11. 405,600 shares of the company’s stock traded hands, compared to its average volume of 572,701. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.80 and a current ratio of 2.70. Fabrinet has a 1 year low of $28.60 and a 1 year high of $49.63. The company has a market cap of $1,169.39, a P/E ratio of 12.39, a price-to-earnings-growth ratio of 1.17 and a beta of 1.03.

Fabrinet (NYSE:FN) last posted its quarterly earnings data on Monday, August 21st. The technology company reported $0.72 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.83 by ($0.11). Fabrinet had a return on equity of 14.35% and a net margin of 6.60%. The company had revenue of $370.50 million for the quarter, compared to the consensus estimate of $363.41 million. During the same period in the prior year, the firm posted $0.60 earnings per share. The business’s revenue was up 34.0% on a year-over-year basis. sell-side analysts forecast that Fabrinet will post 2.22 earnings per share for the current fiscal year.

Fabrinet declared that its Board of Directors has initiated a stock repurchase plan on Monday, August 21st that authorizes the company to buyback $30.00 million in outstanding shares. This buyback authorization authorizes the technology company to reacquire up to 21% of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s board of directors believes its shares are undervalued.

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In related news, CEO David T. Mitchell sold 105,000 shares of the business’s stock in a transaction dated 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 in the company, valued at $4,290,131.91. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, insider David T. Mitchell sold 50,000 shares of the business’s stock in a transaction dated Thursday, November 9th. The shares were sold at an average price of $30.03, for a total transaction of $1,501,500.00. Following the transaction, the insider now owns 111,057 shares in the company, valued at approximately $3,335,041.71. The disclosure for this sale can be found here. Insiders have sold 257,500 shares of company stock worth $9,535,850 in the last quarter. 3.30% of the stock is owned by corporate insiders.

A number of large investors have recently bought and sold shares of FN. BlackRock Inc. boosted its stake in Fabrinet by 60,498.5% during the first quarter. BlackRock Inc. now owns 4,311,581 shares of the technology company’s stock worth $181,218,000 after acquiring an additional 4,304,466 shares in the last quarter. BT Investment Management Ltd bought a new stake in Fabrinet during the second quarter worth about $38,212,000. FMR LLC boosted its stake in Fabrinet by 31.8% during the second quarter. FMR LLC now owns 2,772,212 shares of the technology company’s stock worth $118,262,000 after acquiring an additional 669,201 shares in the last quarter. Legion Partners Asset Management LLC bought a new stake in Fabrinet during the second quarter worth about $21,365,000. Finally, Royce & Associates LP boosted its stake in Fabrinet by 39.9% during the second quarter. Royce & Associates LP now owns 1,396,450 shares of the technology company’s stock worth $59,573,000 after acquiring an additional 398,535 shares in the last quarter. 94.59% of the stock is currently owned by institutional investors and hedge funds.

About Fabrinet

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.

Analyst Recommendations for Fabrinet (NYSE:FN)

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