Fabrinet (NYSE:FN) Hits New 52-Week Low on Analyst Downgrade

Key Points

• Fabrinet shares hit a 52-week low after Barclays cut its price target from $739 to $496, though it maintained an Overweight rating. The stock traded near $299, down sharply from its prior close of $341.64.
• Analyst views remain mixed: the consensus rating is Moderate Buy, with an average price target of $548.88; recent target changes ranged from $385 at B. Riley to $600 at Susquehanna.
• Fabrinet reported quarterly results above expectations, with EPS of $4.34 versus $4.21 forecast and revenue of $1.47 billion, up 50.7% year over year.

Fabrinet (NYSE:FN - Get Free Report) shares hit a new 52-week low during mid-day trading on Thursday after Barclays lowered their price target on the stock from $739.00 to $496.00. Barclays currently has an overweight rating on the stock. Fabrinet traded as low as $299.93 and last traded at $298.9790, with a volume of 393,405 shares traded. The stock had previously closed at $341.64.

A number of other analysts also recently weighed in on the stock. JPMorgan Chase & Co. increased their price target on shares of Fabrinet from $465.00 to $470.00 and gave the company a "neutral" rating in a research report on Tuesday. Fox Advisors raised shares of Fabrinet from an "equal weight" rating to an "overweight" rating in a report on Wednesday, August 19th. B. Riley Financial dropped their price objective on Fabrinet from $431.00 to $385.00 and set a "neutral" rating on the stock in a research note on Friday, October 30th. Susquehanna reduced their target price on Fabrinet from $850.00 to $600.00 and set a "positive" rating on the stock in a report on Wednesday, October 21st. Finally, Zacks Research raised Fabrinet from a "hold" rating to a "strong-buy" rating in a research note on Monday, October 5th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $548.88.

Insider Activity at Fabrinet

In related news, EVP Edward Archer sold 2,500 shares of the firm's stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $385.91, for a total transaction of $964,775.00. Following the sale, the executive vice president directly owned 7,007 shares in the company, valued at $2,704,071.37. This trade represents a 26.30% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 0.22% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Fabrinet

Large investors have recently added to or reduced their stakes in the company. Paradigm Capital Management Inc. NY bought a new stake in Fabrinet in the second quarter worth approximately $298,183,000. Allspring Global Investments Holdings LLC boosted its holdings in shares of Fabrinet by 108.1% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 165,146 shares of the technology company's stock worth $88,350,000 after buying an additional 85,780 shares in the last quarter. Rokos Capital Management LLP bought a new position in shares of Fabrinet during the 1st quarter worth approximately $31,753,000. Bowen Hanes & Co. Inc. grew its position in shares of Fabrinet by 97.4% during the 1st 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 during the period. Finally, Calamos Advisors LLC increased its stake in shares of Fabrinet by 1,469.7% in the 3rd quarter. Calamos Advisors LLC now owns 51,800 shares of the technology company's stock valued at $21,977,000 after acquiring an additional 48,500 shares in the last quarter. Institutional investors own 97.38% of the company's stock.

Fabrinet Stock Down 11.6%

The firm's 50 day moving average price is $399.10 and its two-hundred day moving average price is $520.09. The company has a market cap of $10.82 billion, a P/E ratio of 22.91 and a beta of 1.35. The company has a debt-to-equity ratio of 0.03, a quick ratio of 1.52 and a current ratio of 2.04.

Fabrinet (NYSE:FN - Get Free Report) last issued its earnings results on Monday, November 2nd. The technology company reported $4.34 earnings per share (EPS) for the quarter, topping the consensus estimate of $4.21 by $0.13. The business had revenue of $1.47 billion for the quarter, compared to analyst estimates of $1.42 billion. Fabrinet had a net margin of 9.35% and a return on equity of 22.32%. Fabrinet's revenue was up 50.7% on a year-over-year basis. During the same period in the prior year, the firm earned $2.92 earnings per share. Equities research analysts anticipate that Fabrinet will post 17.57 EPS for the current fiscal year.

Fabrinet Company Profile

Fabrinet NYSE: FN is a provider of outsourced manufacturing services for complex optical, electronic and electromechanical products. The company works with original equipment manufacturers and other technology companies to design, manufacture, assemble, test and distribute products used in optical communications, industrial lasers, automotive applications, medical devices and other advanced technology markets.

Its capabilities include precision optical packaging, optical and electronic assembly, printed circuit board assembly, electromechanical manufacturing, engineering support, supply-chain management and testing.

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