Fabrinet (NYSE:FN) Stock Gets Price Target Trim from Barclays

Key Points

• Barclays cut its Fabrinet price target to $496 from $739 but maintained an “overweight” rating; the revised target implies 47.85% upside from the price cited in the report.
• Fabrinet shares fell $27.86 to $335.47 on Wednesday. Across analysts, the stock has a “Moderate Buy” consensus rating and an average price target of $548.88.
• The company beat quarterly estimates, reporting EPS of $4.34 and revenue of $1.47 billion, up 50.7% year over year.

Fabrinet (NYSE:FN - Get Free Report) had its price objective reduced by analysts at Barclays from $739.00 to $496.00 in a note issued to investors on Wednesday, Benzinga reports. The firm presently has an "overweight" rating on the technology company's stock. Barclays's target price would indicate a potential upside of 47.85% from the company's current price.

Other analysts have also recently issued reports about the company. Needham & Company LLC reiterated a "buy" rating and issued a $500.00 price target on shares of Fabrinet in a research report on Tuesday. Zacks Research raised Fabrinet from a "hold" rating to a "strong-buy" rating in a report on Monday, October 5th. JPMorgan Chase & Co. boosted their target price on shares of Fabrinet from $465.00 to $470.00 and gave the company a "neutral" rating in a research note on Tuesday. B. Riley Financial lowered their target price on shares of Fabrinet from $431.00 to $385.00 and set a "neutral" rating on the stock in a report on Friday, October 30th. Finally, Rosenblatt Securities dropped their target price on shares of Fabrinet from $750.00 to $600.00 and set a "buy" rating for the company in a research report on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and three have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $548.88.

Fabrinet Price Performance

Shares of Fabrinet stock traded down $27.86 during trading on Wednesday, hitting $335.47. 810,797 shares of the company's stock traded hands, compared to its average volume of 869,504. The company has a market cap of $12.02 billion, a PE ratio of 25.33 and a beta of 1.35. The firm's fifty day moving average price is $400.90 and its 200 day moving average price is $520.87. Fabrinet has a twelve month low of $305.63 and a twelve month high of $748.89.

Fabrinet (NYSE:FN - Get Free Report) last announced its quarterly earnings results on Monday, November 2nd. The technology company reported $4.34 EPS for the quarter, topping analysts' consensus estimates of $4.21 by $0.13. Fabrinet had a net margin of 9.35% and a return on equity of 22.81%. The firm had revenue of $1.47 billion during the quarter, compared to analysts' expectations of $1.42 billion. During the same quarter last year, the company earned $2.92 earnings per share. The company's revenue for the quarter was up 50.7% compared to the same quarter last year. As a group, equities research analysts anticipate that Fabrinet will post 17.57 earnings per share for the current year.

Insider Buying and Selling

In related news, EVP Edward Archer sold 2,500 shares of the stock in a transaction that occurred on Thursday, September 3rd. The stock was sold at an average price of $385.91, for a total transaction of $964,775.00. Following the sale, the executive vice president directly owned 7,007 shares in the company, valued at $2,704,071.37. This represents a 26.30% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.22% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Fabrinet

Institutional investors and hedge funds have recently bought and sold shares of the business. AlphaCore Capital LLC acquired a new position in Fabrinet in the third quarter valued at about $232,000. Shepherd Financial Partners LLC increased its holdings in shares of Fabrinet by 2.6% in the third quarter. Shepherd Financial Partners LLC now owns 1,764 shares of the technology company's stock worth $748,000 after acquiring an additional 45 shares in the last quarter. Ethic Inc. raised its position in shares of Fabrinet by 58.2% during the third quarter. Ethic Inc. now owns 2,820 shares of the technology company's stock worth $1,196,000 after purchasing an additional 1,038 shares during the period. StoneX Group Inc. acquired a new stake in shares of Fabrinet during the third quarter worth about $210,000. Finally, Pictet Asset Management Holding SA lifted its holdings in shares of Fabrinet by 3.3% during the 3rd quarter. Pictet Asset Management Holding SA now owns 14,276 shares of the technology company's stock valued at $6,057,000 after purchasing an additional 450 shares in the last quarter. Institutional investors and hedge funds own 97.38% of the company's stock.

Key Fabrinet News

Here are the key news stories impacting Fabrinet this week:

• Positive Sentiment: Fiscal Q1 revenue rose 51% year over year to $1.47 billion, exceeding estimates, while EPS of $4.34 also beat expectations. Fabrinet Q1 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management’s Q2 revenue and EPS guidance came in above consensus, reinforcing expectations for continued growth. Data-center revenue reportedly surged 78%, with demand tied to AI and optical networking helping drive results. FN Q1 Earnings Beat Estimates, Data Center Demand Aids Revenues
• Positive Sentiment: Fabrinet is expanding manufacturing capacity, including work on a new facility described as having roughly $3 billion in capacity, to support anticipated demand. Buyback news also featured among the factors behind the post-results rally. Fabrinet anticipates Q2 revenue while starting Building 11
• Negative Sentiment: Investors are also scrutinizing whether rapid growth will translate into proportionate earnings and cash flow. Coverage highlighted cash demands from expansion and a new global minimum tax, while the latest headline flagged margin questions. Fabrinet's 51% Growth Comes at a Cash Cost

Fabrinet Company Profile

Fabrinet NYSE: FN is a provider of outsourced manufacturing services for complex optical, electronic and electromechanical products. The company works with original equipment manufacturers and other technology companies to design, manufacture, assemble, test and distribute products used in optical communications, industrial lasers, automotive applications, medical devices and other advanced technology markets.

Its capabilities include precision optical packaging, optical and electronic assembly, printed circuit board assembly, electromechanical manufacturing, engineering support, supply-chain management and testing.

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