Fabrinet (NYSE:FN) Hits New 12-Month High - Should You Buy?

Key Points

• Fabrinet's stock reached a new 52-week high of $314.61, closing at $313.00 with a trading volume of 3,791 shares.
• Analysts have mixed ratings on Fabrinet, with a consensus rating of "Hold" and an average price target of $261.33.
• Recent quarterly earnings showed Fabrinet beating expectations with an EPS of $2.52 and revenue of $871.80 million, reflecting a year-over-year revenue increase of 19.2%.

Fabrinet (NYSE:FN - Get Free Report)'s stock price reached a new 52-week high during trading on Monday . The stock traded as high as $314.61 and last traded at $313.00, with a volume of 3791 shares traded. The stock had previously closed at $308.89.

Analyst Ratings Changes

FN has been the topic of several analyst reports. Needham & Company LLC reaffirmed a "buy" rating and set a $280.00 price target on shares of Fabrinet in a research note on Tuesday, May 6th. Wolfe Research initiated coverage on shares of Fabrinet in a report on Tuesday, July 8th. They set a "peer perform" rating for the company. Rosenblatt Securities increased their target price on shares of Fabrinet from $250.00 to $290.00 and gave the stock a "buy" rating in a report on Thursday, June 12th. JPMorgan Chase & Co. boosted their price objective on shares of Fabrinet from $235.00 to $318.00 and gave the stock a "neutral" rating in a research report on Thursday, July 17th. Finally, B. Riley raised shares of Fabrinet from a "sell" rating to a "neutral" rating and lowered their price target for the stock from $178.00 to $176.00 in a research report on Friday, April 4th. Four equities research analysts have rated the stock with a hold rating and three have given a buy rating to the company's stock. According to data from MarketBeat, Fabrinet currently has a consensus rating of "Hold" and a consensus price target of $261.33.

Fabrinet Price Performance

The firm has a market capitalization of $11.62 billion, a price-to-earnings ratio of 36.25 and a beta of 1.04. The business has a fifty day moving average price of $269.52 and a two-hundred day moving average price of $230.93.

Fabrinet (NYSE:FN - Get Free Report) last released its earnings results on Monday, May 5th. The technology company reported $2.52 EPS for the quarter, topping the consensus estimate of $2.47 by $0.05. Fabrinet had a return on equity of 17.99% and a net margin of 10.00%. The firm had revenue of $871.80 million during the quarter, compared to analysts' expectations of $857.12 million. During the same period in the previous year, the firm posted $2.39 EPS. Fabrinet's revenue for the quarter was up 19.2% on a year-over-year basis. On average, research analysts predict that Fabrinet will post 9.4 earnings per share for the current year.

Insiders Place Their Bets

In other news, COO Harpal Gill sold 18,675 shares of the firm's stock in a transaction dated Wednesday, June 4th. The stock was sold at an average price of $240.00, for a total transaction of $4,482,000.00. Following the completion of the sale, the chief operating officer directly owned 18,068 shares in the company, valued at $4,336,320. This trade represents a 50.83% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Rollance E. Olson sold 2,500 shares of Fabrinet stock in a transaction that occurred on Tuesday, May 13th. The shares were sold at an average price of $223.98, for a total value of $559,950.00. Following the sale, the director directly owned 23,201 shares in the company, valued at approximately $5,196,559.98. This trade represents a 9.73% decrease in their position. The disclosure for this sale can be found here. Corporate insiders own 0.38% of the company's stock.

Hedge Funds Weigh In On Fabrinet

A number of institutional investors have recently added to or reduced their stakes in the stock. FMR LLC increased its holdings in Fabrinet by 13.1% in the 4th quarter. FMR LLC now owns 2,213,887 shares of the technology company's stock worth $486,789,000 after acquiring an additional 257,164 shares in the last quarter. Wasatch Advisors LP grew its holdings in shares of Fabrinet by 47.0% during the 4th quarter. Wasatch Advisors LP now owns 1,132,636 shares of the technology company's stock worth $249,044,000 after purchasing an additional 362,064 shares during the period. Geode Capital Management LLC raised its position in shares of Fabrinet by 2.0% during the 4th quarter. Geode Capital Management LLC now owns 1,006,858 shares of the technology company's stock worth $221,430,000 after acquiring an additional 20,045 shares in the last quarter. JPMorgan Chase & Co. boosted its stake in shares of Fabrinet by 1.4% in the fourth quarter. JPMorgan Chase & Co. now owns 669,459 shares of the technology company's stock valued at $147,201,000 after buying an additional 9,058 shares in the last quarter. Finally, Baillie Gifford & Co. increased its stake in Fabrinet by 16.5% in the first quarter. Baillie Gifford & Co. now owns 644,557 shares of the technology company's stock valued at $127,306,000 after purchasing an additional 91,519 shares during the last quarter. 97.38% of the stock is currently owned by institutional investors and hedge funds.

Fabrinet Company Profile

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.