Fabrinet (NYSE:FN) Shares Gap Up - Still a Buy?

Key Points

• Fabrinet shares surged: The stock opened at $525 after closing at $455.94, later trading near $513, though it remained below its 50-day and 200-day moving averages.
• Analyst sentiment remains positive but mixed: Six analysts rate Fabrinet a Buy and four rate it Hold, producing a “Moderate Buy” consensus and an average price target of $643.
• Strong operating results supported the stock: Quarterly EPS of $3.72 exceeded estimates, revenue reached $1.21 billion—up 39.3% year over year—and the company reported a 19.83% return on equity.

Fabrinet (NYSE:FN - Get Free Report)'s share price gapped up before the market opened on Tuesday . The stock had previously closed at $455.94, but opened at $525.00. Fabrinet shares last traded at $513.3910, with a volume of 250,164 shares trading hands.

Analyst Ratings Changes

FN has been the topic of a number of research reports. Rosenblatt Securities raised their price target on Fabrinet from $715.00 to $750.00 and gave the company a "buy" rating in a research report on Tuesday, May 5th. Northland Securities set a $800.00 price objective on Fabrinet in a report on Monday, April 20th. JPMorgan Chase & Co. reduced their price objective on Fabrinet from $700.00 to $680.00 and set a "neutral" rating on the stock in a research report on Tuesday, May 5th. Needham & Company LLC decreased their price objective on Fabrinet from $800.00 to $650.00 and set a "buy" rating on the stock in a report on Wednesday, July 22nd. Finally, Weiss Ratings downgraded Fabrinet from a "buy (b)" rating to a "buy (b-)" rating in a research report on Tuesday, June 30th. Six investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $643.00.

Fabrinet Price Performance

The stock has a 50 day moving average price of $550.01 and a 200-day moving average price of $564.55. The stock has a market capitalization of $19.02 billion, a P/E ratio of 45.68 and a beta of 1.20.

Fabrinet (NYSE:FN - Get Free Report) last released its earnings results on Monday, May 4th. The technology company reported $3.72 earnings per share for the quarter, beating analysts' consensus estimates of $3.58 by $0.14. Fabrinet had a return on equity of 19.83% and a net margin of 9.94%.The company had revenue of $1.21 billion during the quarter, compared to analyst estimates of $1.19 billion. During the same quarter in the previous year, the company posted $2.52 EPS. Fabrinet's revenue for the quarter was up 39.3% on a year-over-year basis. Research analysts predict that Fabrinet will post 12.97 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Homa Bahrami sold 2,500 shares of the stock in a transaction that occurred on Friday, May 22nd. The stock was sold at an average price of $711.91, for a total transaction of $1,779,775.00. Following the completion of the sale, the director owned 16,233 shares of the company's stock, valued at approximately $11,556,435.03. This represents a 13.35% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders own 0.24% of the company's stock.

Institutional Investors Weigh In On Fabrinet

Institutional investors have recently added to or reduced their stakes in the company. Core Wealth Advisors LLC purchased a new position in shares of Fabrinet in the fourth quarter valued at about $25,000. Cassaday & Co Wealth Management LLC bought a new stake in shares of Fabrinet in the first quarter worth about $31,000. Harbour Investments Inc. grew its stake in shares of Fabrinet by 75.0% in the fourth quarter. Harbour Investments Inc. now owns 63 shares of the technology company's stock worth $29,000 after purchasing an additional 27 shares during the last quarter. Creative Financial Designs Inc. ADV purchased a new position in Fabrinet during the 4th quarter valued at about $32,000. Finally, Quarry LP increased its holdings in Fabrinet by 300.0% during the 4th quarter. Quarry LP now owns 72 shares of the technology company's stock valued at $33,000 after purchasing an additional 54 shares during the period. Hedge funds and other institutional investors own 97.38% of the company's stock.

Fabrinet Company Profile

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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