Needham & Company LLC Reiterates Buy Rating for Fabrinet (NYSE:FN)

Fabrinet (NYSE:FN)‘s stock had its “buy” rating restated by equities researchers at Needham & Company LLC in a research note issued to investors on Tuesday,Benzinga reports. They currently have a $540.00 price objective on the technology company’s stock. Needham & Company LLC’s price objective points to a potential upside of 8.04% from the company’s current price.

A number of other research firms have also recently commented on FN. Susquehanna raised their target price on shares of Fabrinet from $550.00 to $570.00 and gave the stock a “positive” rating in a research note on Thursday, January 22nd. Weiss Ratings restated a “buy (b-)” rating on shares of Fabrinet in a research report on Monday, December 29th. Barclays set a $548.00 price target on Fabrinet and gave the stock an “overweight” rating in a research note on Tuesday. Rosenblatt Securities restated a “buy” rating and issued a $550.00 price objective on shares of Fabrinet in a research report on Tuesday. Finally, Zacks Research lowered Fabrinet from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 5th. Seven equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $478.50.

Fabrinet Stock Performance

NYSE FN opened at $499.83 on Tuesday. The business’s fifty day moving average is $473.49 and its 200 day moving average is $406.16. Fabrinet has a fifty-two week low of $148.55 and a fifty-two week high of $531.22. The company has a market capitalization of $17.91 billion, a PE ratio of 51.48 and a beta of 1.04.

Fabrinet (NYSE:FN) last issued its quarterly earnings results on Monday, February 2nd. The technology company reported $3.36 EPS for the quarter, topping analysts’ consensus estimates of $3.26 by $0.10. Fabrinet had a return on equity of 18.16% and a net margin of 9.77%.The business had revenue of $1.13 billion during the quarter, compared to analysts’ expectations of $1.08 billion. During the same quarter in the prior year, the business posted $2.61 earnings per share. The business’s quarterly revenue was up 35.9% on a year-over-year basis. Fabrinet has set its Q3 2026 guidance at 3.450-3.600 EPS. On average, sell-side analysts forecast that Fabrinet will post 9.4 EPS for the current year.

Insider Activity

In related news, Director Homa Bahrami sold 3,500 shares of the stock in a transaction that occurred on Monday, December 1st. The stock was sold at an average price of $453.75, for a total transaction of $1,588,125.00. Following the completion of the transaction, the director directly owned 18,316 shares of the company’s stock, valued at approximately $8,310,885. This represents a 16.04% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Thomas F. Kelly sold 2,200 shares of Fabrinet stock in a transaction that occurred on Thursday, December 4th. The stock was sold at an average price of $464.14, for a total value of $1,021,108.00. Following the completion of the sale, the director directly owned 18,789 shares in the company, valued at approximately $8,720,726.46. The trade was a 10.48% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 28,151 shares of company stock worth $12,643,707 over the last 90 days. Corporate insiders own 0.24% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the business. SBI Securities Co. Ltd. raised its stake in Fabrinet by 136.9% during the fourth quarter. SBI Securities Co. Ltd. now owns 289 shares of the technology company’s stock valued at $132,000 after purchasing an additional 167 shares in the last quarter. Highland Capital Management LLC purchased a new position in shares of Fabrinet in the 4th quarter worth $220,000. Principal Financial Group Inc. grew its stake in shares of Fabrinet by 4.0% in the 4th quarter. Principal Financial Group Inc. now owns 187,883 shares of the technology company’s stock worth $85,539,000 after buying an additional 7,233 shares in the last quarter. Truist Financial Corp increased its holdings in shares of Fabrinet by 7.0% in the 4th quarter. Truist Financial Corp now owns 5,064 shares of the technology company’s stock worth $2,305,000 after buying an additional 333 shares during the last quarter. Finally, Horizon Investments LLC purchased a new stake in shares of Fabrinet during the 4th quarter valued at about $281,000. 97.38% of the stock is owned by hedge funds and other institutional investors.

Fabrinet News Roundup

Here are the key news stories impacting Fabrinet this week:

• Positive Sentiment: Record revenue and EPS beat: Fabrinet reported Q2 revenue of ~$1.13B (year‑over‑year growth ~36%) and EPS consistent with the company release ($3.36), topping headline consensus and showing strong top‑line demand. Fabrinet (FN) Q2 2026 Earnings Call Highlights
• Positive Sentiment: Ahead‑of‑consensus guidance: Management set Q3 FY2026 EPS guidance of $3.45–$3.60 and revenue guidance (~$1.2B) above Street expectations, supporting continued growth into the next quarter. Fabrinet Announces Second Quarter Fiscal Year 2026 Financial Results
• Neutral Sentiment: Analyst views and valuations are mixed: several firms maintain buy ratings and lofty price targets (median ~\$538), but valuation is elevated (P/E ~51) after a large one‑year rally — this increases sensitivity to any near‑term miss. Fabrinet (FN) Stock Falls on Q2 2026 Earnings
• Neutral Sentiment: Full earnings call and transcript are available for details on customer timing, product ramps (AI/HPC exposure) and FX commentary — useful for parsing whether weakness is operational or timing‑related. Fabrinet (FN) Q2 2026 Earnings Call Transcript
• Negative Sentiment: Shares fell sharply despite the beat: multiple outlets reported a significant intraday sell‑off — the market appears focused on items beyond headline revenue/EPS. Fabrinet shares tumble despite record Q2 results
• Negative Sentiment: Cash flow and balance‑sheet signals raised concerns: third‑party summaries flagged a sharp drop in operating cash flow, large increase in capex and lower cash balances year‑over‑year — these can pressure near‑term liquidity and investor sentiment. Fabrinet (FN) Stock Falls on Q2 2026 Earnings
• Negative Sentiment: Perception of mixed metrics: while company releases show EPS beat, some outlets reported different diluted EPS figures or misses on specific measures — any apparent inconsistency can amplify selling in a richly valued stock. Fabrinet crashes despite strong Q2 results, guidance
• Negative Sentiment: Insider selling and profit‑taking after a large rally: datasets cited recent insider sales and a ~126% one‑year rally — these dynamics can accentuate post‑earnings pullbacks. Fabrinet (FN) Stock Falls on Q2 2026 Earnings

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.