California State Teachers Retirement System Boosts Stake in Fabrinet $FN

Key Points

• California State Teachers Retirement System dramatically increased its Fabrinet stake by acquiring roughly 30.1 million additional shares, bringing its ownership to about 84.15% of the company. Institutional investors collectively own 97.38% of Fabrinet.
• Fabrinet reported stronger-than-expected quarterly results, with EPS of $4.10 versus the $3.81 consensus and revenue of $1.32 billion, up 44.6% year over year.
• Shares opened at $406.51, well below their 12-month high of $748.89, while analysts maintained a “Moderate Buy” consensus and an average price target of $649.50.

California State Teachers Retirement System grew its holdings in shares of Fabrinet (NYSE:FN - Free Report) by 72,124.7% in the 2nd quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 30,151,657 shares of the technology company's stock after acquiring an additional 30,109,910 shares during the period. California State Teachers Retirement System owned about 84.15% of Fabrinet worth $16,947,643,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors have also modified their holdings of the company. Great Lakes Advisors LLC purchased a new stake in Fabrinet during the 2nd quarter worth approximately $3,024,000. Sei Investments Co. boosted its stake in shares of Fabrinet by 22.0% during the 1st quarter. Sei Investments Co. now owns 89,843 shares of the technology company's stock valued at $46,854,000 after buying an additional 16,218 shares during the last quarter. Quantinno Capital Management LP boosted its stake in shares of Fabrinet by 130.8% during the 1st quarter. Quantinno Capital Management LP now owns 7,039 shares of the technology company's stock valued at $3,671,000 after buying an additional 3,989 shares during the last quarter. Wedge Capital Management L L P NC grew its position in shares of Fabrinet by 11.5% during the second quarter. Wedge Capital Management L L P NC now owns 128,795 shares of the technology company's stock worth $72,393,000 after buying an additional 13,245 shares in the last quarter. Finally, Bowen Hanes & Co. Inc. grew its position in shares of Fabrinet by 97.4% during the first quarter. Bowen Hanes & Co. Inc. now owns 98,715 shares of the technology company's stock worth $51,482,000 after buying an additional 48,715 shares in the last quarter. 97.38% of the stock is owned by hedge funds and other institutional investors.

Fabrinet Price Performance

Shares of FN opened at $406.51 on Tuesday. The business's fifty day moving average price is $479.74 and its 200 day moving average price is $563.59. Fabrinet has a 12-month low of $348.01 and a 12-month high of $748.89. The stock has a market capitalization of $14.57 billion, a PE ratio of 31.15 and a beta of 1.21.

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

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on FN shares. Barclays lifted their price target on shares of Fabrinet from $702.00 to $739.00 and gave the stock an "overweight" rating in a research note on Tuesday, August 18th. Needham & Company LLC reissued a "buy" rating and set a $650.00 price objective on shares of Fabrinet in a report on Tuesday, August 18th. JPMorgan Chase & Co. boosted their target price on shares of Fabrinet from $680.00 to $695.00 and gave the stock a "neutral" rating in a research report on Tuesday, August 18th. Wall Street Zen lowered shares of Fabrinet from a "buy" rating to a "hold" rating in a research note on Monday, July 20th. Finally, Zacks Research cut shares of Fabrinet from a "strong-buy" rating to a "hold" rating in a research report on Monday, June 15th. Seven equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $649.50.

Insider Activity at Fabrinet

In other news, EVP Edward Archer sold 2,500 shares of Fabrinet stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $385.91, for a total value of $964,775.00. Following the completion of the transaction, the executive vice president directly owned 7,007 shares of the company's stock, valued at approximately $2,704,071.37. The trade was a 26.30% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Company insiders own 0.24% 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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