Fabrinet (NYSE:FN) Reaches New 12-Month Low - Should You Sell?

Key Points

• Fabrinet shares fell to a new 52-week low, trading as low as $364.41 and down 3.3%, well below their 50-day and 200-day moving averages.
• Despite the sell-off, analysts maintain a “Moderate Buy” consensus with an average price target of $646.88, substantially above the recent trading price.
• Fabrinet recently exceeded quarterly earnings and revenue expectations, with revenue up 44.6% year over year; institutional investors own 97.38% of the company’s stock.

Fabrinet (NYSE:FN - Get Free Report)'s share price hit a new 52-week low on Thursday. The stock traded as low as $364.41 and last traded at $373.1660, with a volume of 190,247 shares trading hands. The stock had previously closed at $392.95.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on FN shares. Zacks Research upgraded Fabrinet from a "hold" rating to a "strong-buy" rating in a research note on Monday, October 5th. Wall Street Zen cut shares of Fabrinet from a "buy" rating to a "hold" rating in a research note on Monday, July 20th. JPMorgan Chase & Co. lifted their price target on Fabrinet from $680.00 to $695.00 and gave the company a "neutral" rating in a research report on Tuesday, August 18th. Needham & Company LLC reissued a "buy" rating and set a $650.00 target price on shares of Fabrinet in a research note on Tuesday, August 18th. Finally, Barclays upped their target price on Fabrinet from $702.00 to $739.00 and gave the company an "overweight" rating in a report on Tuesday, August 18th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $646.88.

Fabrinet Trading Down 3.3%

The firm's fifty day moving average price is $446.34 and its 200 day moving average price is $541.12. The firm has a market capitalization of $13.61 billion, a PE ratio of 28.84 and a beta of 1.23.

Fabrinet (NYSE:FN - Get Free Report) last posted its quarterly earnings results on Tuesday, August 18th. The technology company reported $4.10 earnings per share for the quarter, topping analysts' consensus estimates of $3.81 by $0.29. The company had revenue of $1.32 billion during the quarter, compared to the consensus estimate of $1.28 billion. Fabrinet had a return on equity of 21.23% and a net margin of 10.19%. The business's quarterly revenue was up 44.6% on a year-over-year basis. During the same period last year, the business earned $2.65 EPS. As a group, research analysts expect that Fabrinet will post 17.50 EPS for the current year.

Insiders Place Their Bets

In other Fabrinet news, EVP Edward Archer sold 2,500 shares of the firm's stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $385.91, for a total transaction of $964,775.00. Following the transaction, 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 transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. 0.24% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Fabrinet

Institutional investors have recently modified their holdings of the company. Paradigm Capital Management Inc. NY acquired a new position in Fabrinet in the 2nd quarter valued at approximately $298,183,000. Polar Capital Holdings Plc lifted its holdings in shares of Fabrinet by 58.9% during the fourth quarter. Polar Capital Holdings Plc now owns 551,916 shares of the technology company's stock valued at $251,276,000 after acquiring an additional 204,612 shares during the period. Janus Henderson Group PLC lifted its holdings in Fabrinet by 15.9% during the 1st quarter. Janus Henderson Group PLC now owns 291,659 shares of the technology company's stock valued at $152,071,000 after purchasing an additional 40,090 shares during the last quarter. Principal Financial Group Inc. boosted its holdings in shares of Fabrinet by 15.0% in the 1st quarter. Principal Financial Group Inc. now owns 216,049 shares of the technology company's stock worth $112,674,000 after acquiring an additional 28,166 shares in the last quarter. Finally, Allspring Global Investments Holdings LLC boosted its stake in Fabrinet by 108.1% in the first quarter. Allspring Global Investments Holdings LLC now owns 165,146 shares of the technology company's stock worth $88,350,000 after purchasing an additional 85,780 shares in the last quarter. Institutional investors own 97.38% of the company's stock.

About Fabrinet

Fabrinet NYSE: FN provides advanced manufacturing services for companies that develop optical, electro-optical, and precision-engineered products. The company supports customers from product design and engineering through manufacturing, assembly, testing, and supply-chain management.

Its products and manufacturing capabilities include optical communications components, modules, and assemblies; precision optical and optoelectronic systems; industrial lasers; and other complex products used in communications, industrial, automotive, medical, and other technology markets.

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