Fabrinet (NYSE:FN) Shares Gap Down – Here’s Why

Fabrinet (NYSE:FN) shares gapped down prior to trading on Wednesday . The stock had previously closed at $248.74, but opened at $224.36. Fabrinet shares last traded at $222.97, with a volume of 270,030 shares.

Analysts Set New Price Targets

FN has been the topic of several recent research reports. B. Riley cut shares of Fabrinet from a “neutral” rating to a “sell” rating and lowered their price target for the company from $194.00 to $178.00 in a research report on Wednesday. Rosenblatt Securities raised their price target on shares of Fabrinet from $260.00 to $280.00 and gave the stock a “buy” rating in a report on Tuesday, August 20th. Barclays started coverage on Fabrinet in a report on Thursday, November 14th. They issued an “equal weight” rating and a $292.00 price objective on the stock. Needham & Company LLC started coverage on Fabrinet in a research note on Tuesday, November 5th. They set a “buy” rating and a $280.00 target price for the company. Finally, JPMorgan Chase & Co. upped their price target on Fabrinet from $240.00 to $285.00 and gave the company a “neutral” rating in a research note on Tuesday, August 20th. One investment analyst has rated the stock with a sell rating, three have given a hold rating and three have assigned a buy rating to the company. Based on data from MarketBeat.com, Fabrinet currently has a consensus rating of “Hold” and a consensus target price of $252.14.

Fabrinet Stock Performance

The company has a market capitalization of $8.35 billion, a price-to-earnings ratio of 27.23 and a beta of 0.95. The firm has a 50-day simple moving average of $243.99 and a two-hundred day simple moving average of $237.24.

Fabrinet (NYSE:FN) last announced its quarterly earnings data on Monday, November 4th. The technology company reported $2.39 earnings per share for the quarter, beating analysts’ consensus estimates of $2.38 by $0.01. Fabrinet had a net margin of 10.28% and a return on equity of 18.08%. The firm had revenue of $804.20 million during the quarter, compared to analysts’ expectations of $771.24 million. During the same quarter in the previous year, the business posted $1.78 earnings per share. The business’s quarterly revenue was up 17.3% compared to the same quarter last year. As a group, equities analysts forecast that Fabrinet will post 9.1 EPS for the current fiscal year.

Insider Activity

In related news, CFO Csaba Sverha sold 100 shares of the firm’s stock in a transaction that occurred on Monday, August 26th. The shares were sold at an average price of $270.00, for a total value of $27,000.00. Following the sale, the chief financial officer now owns 19,347 shares of the company’s stock, valued at $5,223,690. This trade represents a 0.51 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Edward T. Archer sold 8,690 shares of the firm’s stock in a transaction on Thursday, September 5th. The shares were sold at an average price of $220.26, for a total transaction of $1,914,059.40. Following the completion of the sale, the executive vice president now owns 8,333 shares in the company, valued at $1,835,426.58. The trade was a 51.05 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders own 0.38% of the company’s stock.

Institutional Investors Weigh In On Fabrinet

Hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. lifted its holdings in Fabrinet by 0.9% in the first quarter. Vanguard Group Inc. now owns 4,348,671 shares of the technology company’s stock valued at $821,986,000 after acquiring an additional 38,999 shares during the period. Wellington Management Group LLP increased its position in shares of Fabrinet by 1.7% in the third quarter. Wellington Management Group LLP now owns 1,169,162 shares of the technology company’s stock valued at $276,437,000 after buying an additional 19,677 shares in the last quarter. Geode Capital Management LLC boosted its position in shares of Fabrinet by 7.6% in the 3rd quarter. Geode Capital Management LLC now owns 986,813 shares of the technology company’s stock worth $233,359,000 after buying an additional 69,554 shares in the last quarter. Whale Rock Capital Management LLC increased its holdings in Fabrinet by 25.8% during the 3rd quarter. Whale Rock Capital Management LLC now owns 855,767 shares of the technology company’s stock valued at $202,338,000 after acquiring an additional 175,684 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. lifted its holdings in shares of Fabrinet by 14.7% in the third quarter. Charles Schwab Investment Management Inc. now owns 480,550 shares of the technology company’s stock valued at $113,621,000 after purchasing an additional 61,491 shares in the last quarter. Institutional investors and hedge funds own 97.38% of the company’s stock.

About Fabrinet

Fabrinet provides optical packaging and precision optical, electro-mechanical, and electronic manufacturing services in North America, the Asia-Pacific, and Europe. The company offers a range of advanced optical and electro-mechanical capabilities in the manufacturing process, including process design and engineering, supply chain management, manufacturing, printed circuit board assembly, advanced packaging, integration, final assembly, and testing.