Fabrinet (NYSE:FN) Shares Down 3.8% - Should You Sell?

Key Points

• Fabrinet shares fell 3.8% to $427.86 in Friday trading, below both its 50-day ($519.11) and 200-day ($568.63) moving averages.
• Analyst sentiment remains positive overall, with six Buy and four Hold ratings, a “Moderate Buy” consensus, and an average price target of $649.50, despite one recent downgrade to Hold.
• Fabrinet exceeded quarterly expectations with $4.10 in EPS versus $3.81 expected and $1.32 billion in revenue, up 44.6% year over year. Institutional investors own 97.38% of the stock, with several major funds increasing their positions.

Fabrinet (NYSE:FN - Get Free Report) shares fell 3.8% during trading on Friday . The company traded as low as $427.37 and last traded at $427.86. Approximately 270,416 shares traded hands during trading, a decline of 68% from the average daily volume of 847,856 shares. The stock had previously closed at $444.87.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on FN. Barclays upped their price target on shares of Fabrinet from $702.00 to $739.00 and gave the stock an "overweight" rating in a report on Tuesday. JPMorgan Chase & Co. boosted their target price on Fabrinet from $680.00 to $695.00 and gave the stock a "neutral" rating in a research report on Tuesday. Rosenblatt Securities restated a "buy" rating and issued a $750.00 target price on shares of Fabrinet in a research note on Tuesday. Needham & Company LLC reaffirmed a "buy" rating and issued a $650.00 price target on shares of Fabrinet in a report on Tuesday. Finally, Weiss Ratings downgraded Fabrinet from a "buy (b-)" rating to a "hold (c+)" rating in a research report on Wednesday, August 12th. Six research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, Fabrinet has a consensus rating of "Moderate Buy" and an average target price of $649.50.

Fabrinet Price Performance

The company has a 50 day simple moving average of $519.11 and a 200-day simple moving average of $568.63. The stock has a market cap of $15.57 billion, a P/E ratio of 33.31 and a beta of 1.23.

Fabrinet (NYSE:FN - Get Free Report) last announced its quarterly earnings data on Monday, August 17th. The technology company reported $4.10 EPS for the quarter, beating the consensus estimate of $3.81 by $0.29. The firm had revenue of $1.32 billion for the quarter, compared to analyst estimates of $1.28 billion. Fabrinet had a return on equity of 21.23% and a net margin of 10.19%.The company's revenue was up 44.6% on a year-over-year basis. During the same period in the prior year, the company earned $2.65 EPS. Fabrinet has set its Q1 2027 guidance at 4.100-4.250 EPS. As a group, research analysts expect that Fabrinet will post 16.46 earnings per share for the current year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of FN. Price T Rowe Associates Inc. MD boosted its stake in shares of Fabrinet by 163.0% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 4,041,227 shares of the technology company's stock valued at $1,839,891,000 after purchasing an additional 2,504,841 shares in the last quarter. Wasatch Advisors LP boosted its position in Fabrinet by 45.1% during the second quarter. Wasatch Advisors LP now owns 1,779,665 shares of the technology company's stock valued at $524,432,000 after buying an additional 553,196 shares during the period. Geode Capital Management LLC grew its stake in shares of Fabrinet by 4.8% during the fourth quarter. Geode Capital Management LLC now owns 1,108,813 shares of the technology company's stock valued at $504,886,000 after buying an additional 50,708 shares during the last quarter. JPMorgan Chase & Co. grew its stake in shares of Fabrinet by 64.8% during the fourth quarter. JPMorgan Chase & Co. now owns 1,065,414 shares of the technology company's stock valued at $485,063,000 after buying an additional 419,081 shares during the last quarter. Finally, Invesco Ltd. grew its stake in shares of Fabrinet by 33.3% during the third quarter. Invesco Ltd. now owns 681,850 shares of the technology company's stock valued at $248,616,000 after buying an additional 170,297 shares during the last quarter. 97.38% of the stock is currently owned by institutional investors.

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.

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