Jabil (NYSE:JBL) Trading Down 4.7% - Here's Why

Key Points

• Jabil's share price declined by 4.7% on Wednesday, trading between $218.62 and $219.44, with a significant drop in trading volume.
• Despite the stock's recent drop, analysts remain optimistic, with a consensus rating of “Buy” and an average price target of $231.71.
• The company recently announced a dividend of $0.08 per share, with a dividend payout ratio of 6.21%, which will be paid on September 3rd to stockholders of record by August 18th.

Jabil, Inc. (NYSE:JBL - Get Free Report)'s share price dropped 4.7% on Wednesday . The stock traded as low as $218.62 and last traded at $219.44. Approximately 556,090 shares traded hands during trading, a decline of 60% from the average daily volume of 1,403,666 shares. The stock had previously closed at $230.31.

Wall Street Analysts Forecast Growth

JBL has been the topic of several recent analyst reports. Argus raised shares of Jabil from a "hold" rating to a "buy" rating in a research note on Wednesday, June 18th. JPMorgan Chase & Co. lifted their price target on shares of Jabil from $214.00 to $256.00 and gave the company an "overweight" rating in a research note on Thursday, July 17th. Barclays lifted their price target on shares of Jabil from $206.00 to $223.00 and gave the company an "overweight" rating in a research note on Tuesday, June 17th. Raymond James Financial reaffirmed a "strong-buy" rating and issued a $230.00 price target (up previously from $170.00) on shares of Jabil in a research note on Wednesday, June 18th. Finally, Bank of America lifted their price target on shares of Jabil from $225.00 to $245.00 and gave the company a "buy" rating in a research note on Friday, June 20th. One investment analyst has rated the stock with a hold rating, seven have issued a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Buy" and an average target price of $231.71.

Jabil Stock Performance

The stock's 50-day moving average price is $211.75 and its 200 day moving average price is $171.71. The company has a debt-to-equity ratio of 1.85, a current ratio of 0.98 and a quick ratio of 0.64. The firm has a market cap of $23.52 billion, a P/E ratio of 42.56, a price-to-earnings-growth ratio of 1.56 and a beta of 1.20.

Jabil (NYSE:JBL - Get Free Report) last issued its earnings results on Tuesday, June 17th. The technology company reported $2.55 earnings per share for the quarter, topping analysts' consensus estimates of $2.28 by $0.27. The business had revenue of $7.83 billion for the quarter, compared to the consensus estimate of $7.03 billion. Jabil had a net margin of 2.02% and a return on equity of 60.19%. The firm's revenue for the quarter was up 15.7% on a year-over-year basis. During the same period in the previous year, the company earned $1.89 earnings per share. As a group, equities analysts predict that Jabil, Inc. will post 8.05 EPS for the current year.

Jabil Dividend Announcement

The business also recently announced a dividend, which will be paid on Wednesday, September 3rd. Stockholders of record on Monday, August 18th will be issued a $0.08 dividend. The ex-dividend date of this dividend is Friday, August 15th. This represents a dividend yield of 14.0%. Jabil's dividend payout ratio is 6.21%.

Insider Transactions at Jabil

In other news, Director Steven A. Raymund sold 15,955 shares of the stock in a transaction dated Friday, June 27th. The shares were sold at an average price of $216.83, for a total value of $3,459,522.65. Following the completion of the transaction, the director owned 99,828 shares of the company's stock, valued at approximately $21,645,705.24. This represents a 13.78% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Steven D. Borges sold 22,443 shares of the stock in a transaction dated Wednesday, June 18th. The stock was sold at an average price of $200.01, for a total transaction of $4,488,824.43. Following the completion of the transaction, the executive vice president directly owned 102,803 shares of the company's stock, valued at $20,561,628.03. This trade represents a 17.92% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 332,847 shares of company stock valued at $66,534,847. 1.73% of the stock is owned by company insiders.

Institutional Trading of Jabil

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Trek Financial LLC acquired a new stake in Jabil during the 2nd quarter valued at approximately $3,376,000. PharVision Advisers LLC acquired a new stake in Jabil during the 2nd quarter valued at approximately $212,000. Groupe la Francaise boosted its holdings in shares of Jabil by 63.4% during the 2nd quarter. Groupe la Francaise now owns 402 shares of the technology company's stock worth $88,000 after buying an additional 156 shares in the last quarter. Pinkerton Wealth LLC bought a new position in shares of Jabil during the 2nd quarter worth approximately $2,013,000. Finally, Arrowstreet Capital Limited Partnership bought a new position in shares of Jabil during the 2nd quarter worth approximately $25,227,000. Institutional investors and hedge funds own 93.39% of the company's stock.

Jabil Company Profile

Jabil Inc provides manufacturing services and solutions worldwide. It operates in two segments, Electronics Manufacturing Services and Diversified Manufacturing Services. The company offers electronics design, production, and product management services; electronic circuit design services, such as application-specific integrated circuit design, firmware development, and rapid prototyping services; and designs plastic and metal enclosures that include the electro-mechanics, such as the printed circuit board assemblies (PCBA).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.