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

Key Points

• Fabrinet's shares gapped down significantly, opening at $288.75 compared to a previous close of $327.12, with the last trading price at $286.34.
• Analysts remain optimistic, with multiple brokerages issuing ratings of "Buy" and setting target prices ranging from $318.00 to $360.00, indicating potential growth despite recent price drops.
• The company reported a 20.8% year-over-year revenue increase, with quarterly earnings beating expectations, demonstrating strong financial performance.

Fabrinet (NYSE:FN - Get Free Report) gapped down before the market opened on Tuesday . The stock had previously closed at $327.12, but opened at $288.75. Fabrinet shares last traded at $286.34, with a volume of 724,070 shares changing hands.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on FN. Rosenblatt Securities reaffirmed a "buy" rating and set a $360.00 target price on shares of Fabrinet in a research report on Tuesday. Barclays lifted their target price on Fabrinet from $234.00 to $329.00 and gave the company an "equal weight" rating in a research report on Tuesday. Wolfe Research began coverage on Fabrinet in a research report on Tuesday, July 8th. They set a "peer perform" rating for the company. JPMorgan Chase & Co. lifted their target price on Fabrinet from $235.00 to $318.00 and gave the company a "neutral" rating in a research report on Thursday, July 17th. Finally, Needham & Company LLC reaffirmed a "buy" rating and set a $350.00 target price on shares of Fabrinet in a research report on Tuesday. Three research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Hold" and an average price target of $300.50.

Fabrinet Stock Performance

The stock has a fifty day moving average price of $298.58 and a 200-day moving average price of $241.11. The firm has a market capitalization of $10.49 billion, a PE ratio of 32.66 and a beta of 1.02.

Fabrinet (NYSE:FN - Get Free Report) last announced its quarterly earnings results on Monday, August 18th. The technology company reported $2.65 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.63 by $0.02. Fabrinet had a return on equity of 17.99% and a net margin of 10.00%.The business had revenue of $909.69 million for the quarter, compared to the consensus estimate of $880.19 million. During the same period last year, the business posted $2.41 EPS. The business's revenue was up 20.8% compared to the same quarter last year. Fabrinet has set its Q1 2026 guidance at 2.750-2.900 EPS. Research analysts expect that Fabrinet will post 9.4 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, COO Harpal Gill sold 18,675 shares of the business's stock in a transaction on 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 transaction, the chief operating officer directly owned 18,068 shares in the company, valued at $4,336,320. The trade was a 50.83% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. 0.38% of the stock is currently owned by company insiders.

Institutional Trading of Fabrinet

Several large investors have recently added to or reduced their stakes in FN. Wasatch Advisors LP grew its stake in Fabrinet by 45.1% during the 2nd quarter. Wasatch Advisors LP now owns 1,779,665 shares of the technology company's stock valued at $524,432,000 after purchasing an additional 553,196 shares during the last quarter. Norges Bank acquired a new position in shares of Fabrinet in the 2nd quarter valued at about $124,046,000. Invesco Ltd. lifted its holdings in shares of Fabrinet by 446.6% in the 2nd quarter. Invesco Ltd. now owns 511,553 shares of the technology company's stock valued at $150,744,000 after buying an additional 417,959 shares during the period. Capital Research Global Investors lifted its holdings in shares of Fabrinet by 675.2% in the 4th quarter. Capital Research Global Investors now owns 417,020 shares of the technology company's stock valued at $91,694,000 after buying an additional 363,228 shares during the period. Finally, Westfield Capital Management Co. LP lifted its holdings in shares of Fabrinet by 102.8% in the 2nd quarter. Westfield Capital Management Co. LP now owns 663,310 shares of the technology company's stock valued at $195,464,000 after buying an additional 336,173 shares during the period. Hedge funds and other institutional investors 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.

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