Fabrinet (NYSE:FN) Receives Average Recommendation of "Moderate Buy" from Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus on Fabrinet, with six buy ratings and four holds. The average 12-month price target is $649.50, including targets as high as $750.
• Fabrinet exceeded quarterly expectations, reporting $4.10 in EPS versus $3.81 expected and $1.32 billion in revenue, up 44.6% year over year.
• The stock opened at $399.51, well below its 52-week high of $748.89, while hedge funds and institutional investors own a substantial 97.38% of shares.

Fabrinet (NYSE:FN - Get Free Report) has been assigned an average rating of "Moderate Buy" from the ten brokerages that are covering the stock, MarketBeat.com reports. Four research analysts have rated the stock with a hold recommendation and six have given a buy recommendation to the company. The average 12-month price objective among analysts that have issued a report on the stock in the last year is $649.50.

A number of brokerages recently weighed in on FN. Zacks Research lowered shares of Fabrinet from a "strong-buy" rating to a "hold" rating in a research note on Monday, June 15th. JPMorgan Chase & Co. boosted their price objective on Fabrinet from $680.00 to $695.00 and gave the stock a "neutral" rating in a research note on Tuesday, August 18th. Weiss Ratings cut Fabrinet from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, September 9th. Rosenblatt Securities restated a "buy" rating and issued a $750.00 target price on shares of Fabrinet in a research report on Tuesday, August 18th. Finally, Needham & Company LLC reaffirmed a "buy" rating and issued a $650.00 price target on shares of Fabrinet in a research note on Tuesday, August 18th.

Fabrinet Stock Performance

Fabrinet stock opened at $399.51 on Friday. The stock has a market capitalization of $14.31 billion, a P/E ratio of 30.61 and a beta of 1.21. The company's fifty day moving average price is $455.11 and its 200 day moving average price is $549.49. Fabrinet has a 1 year low of $354.41 and a 1 year high of $748.89.

Fabrinet (NYSE:FN - Get Free Report) last posted its quarterly earnings data on Tuesday, August 18th. The technology company reported $4.10 earnings per share for the quarter, topping analysts' consensus estimates of $3.81 by $0.29. Fabrinet had a net margin of 10.19% and a return on equity of 21.23%. The company had revenue of $1.32 billion during the quarter, compared to analysts' expectations of $1.28 billion. During the same period in the prior year, the business posted $2.65 earnings per share. The firm's revenue for the quarter was up 44.6% on a year-over-year basis. Sell-side analysts predict that Fabrinet will post 17.5 EPS for the current year.

Insider Transactions at Fabrinet

In other news, EVP Edward Archer sold 2,500 shares of the company's stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $385.91, for a total transaction of $964,775.00. Following the completion of the sale, the executive vice president owned 7,007 shares of the company's stock, valued at $2,704,071.37. This represents a 26.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 0.24% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Fabrinet

Hedge funds and other institutional investors have recently modified their holdings of the business. QRG Capital Management Inc. boosted its position in Fabrinet by 13.9% during the second quarter. QRG Capital Management Inc. now owns 2,008 shares of the technology company's stock worth $1,128,000 after acquiring an additional 245 shares during the last quarter. SkyView Investment Advisors LLC purchased a new stake in Fabrinet during the 2nd quarter valued at about $141,000. Sequoia Financial Advisors LLC raised its holdings in Fabrinet by 3.8% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 2,459 shares of the technology company's stock valued at $1,382,000 after acquiring an additional 91 shares during the last quarter. WINTON GROUP Ltd raised its holdings in Fabrinet by 233.0% in the 2nd quarter. WINTON GROUP Ltd now owns 8,405 shares of the technology company's stock valued at $4,724,000 after acquiring an additional 5,881 shares during the last quarter. Finally, Engineers Gate Manager LP purchased a new position in Fabrinet in the 2nd quarter worth approximately $2,491,000. 97.38% of the stock is owned by hedge funds and other institutional investors.

Fabrinet Company Profile

Fabrinet NYSE: FN is a provider of advanced manufacturing services for original equipment manufacturers and other technology companies. The company specializes in precision optical, electromechanical and electronic manufacturing, helping customers design, assemble, test and package complex products.

Its capabilities support products used in optical communications, including components, modules and transceivers for telecommunications and data-center networks. Fabrinet also provides manufacturing services for industrial lasers, medical devices, automotive applications, and aerospace and defense products.

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