Fabrinet (NYSE:FN) Sets New 1-Year Low - Time to Sell?

Key Points

• Fabrinet shares fell to a new 52-week low, trading as low as $345.71 and below both their 50-day and 200-day moving averages.
• Despite the decline, analysts maintain a consensus “Moderate Buy” rating with an average price target of $646.88, although B. Riley sharply cut its target to $431 and assigned a neutral rating.
• The company recently exceeded earnings and revenue expectations, reporting $4.10 in EPS and $1.32 billion in revenue, with revenue up 44.6% year over year; institutional investors own 97.38% of outstanding shares.

Shares of Fabrinet (NYSE:FN - Get Free Report) reached a new 52-week low on Wednesday. The stock traded as low as $345.71 and last traded at $355.6870, with a volume of 833,048 shares traded. The stock had previously closed at $362.69.

Wall Street Analysts Forecast Growth

A number of analysts recently issued reports on the company. B. Riley Financial decreased their target price on Fabrinet from $598.00 to $431.00 and set a "neutral" rating for the company in a research report on Thursday, October 15th. Fox Advisors raised shares of Fabrinet from an "equal weight" rating to an "overweight" rating in a report on Wednesday, August 19th. Zacks Research upgraded shares of Fabrinet from a "hold" rating to a "strong-buy" rating in a research report on Monday, October 5th. Wall Street Zen lowered Fabrinet from a "buy" rating to a "hold" rating in a research note on Monday, July 20th. Finally, Barclays boosted their price target on Fabrinet from $702.00 to $739.00 and gave the company an "overweight" rating in a report on Tuesday, August 18th. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $646.88.

Fabrinet Price Performance

The firm's 50-day moving average price is $432.46 and its 200-day moving average price is $536.63. The company has a market cap of $12.74 billion, a price-to-earnings ratio of 27.50 and a beta of 1.23.

Fabrinet (NYSE:FN - Get Free Report) last issued 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 company had revenue of $1.32 billion for the quarter, compared to analysts' expectations of $1.28 billion. Fabrinet had a return on equity of 21.23% and a net margin of 10.19%. The firm's quarterly revenue was up 44.6% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.65 earnings per share. On average, sell-side analysts anticipate that Fabrinet will post 17.50 earnings per share for the current year.

Insider Buying and Selling at Fabrinet

In other 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 completion of 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 Securities & Exchange Commission, which is available at this hyperlink. 0.24% of the stock is owned by corporate insiders.

Institutional Trading of Fabrinet

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Great Lakes Advisors LLC acquired a new stake in Fabrinet during the second quarter valued at approximately $3,024,000. B.A. Schrock Wealth Management Inc. bought a new position in shares of Fabrinet during the third quarter worth about $1,305,000. Sei Investments Co. increased its stake in shares of Fabrinet by 22.0% in the first quarter. Sei Investments Co. now owns 89,843 shares of the technology company's stock valued at $46,854,000 after purchasing an additional 16,218 shares during the period. Engineers Gate Manager LP bought a new stake in Fabrinet during the 2nd quarter valued at $2,491,000. Finally, California State Teachers Retirement System raised its stake in shares of Fabrinet by 23.0% during the first quarter. California State Teachers Retirement System now owns 41,747 shares of the technology company's stock valued at $21,772,000 after purchasing an additional 7,819 shares in the last quarter. Institutional investors own 97.38% of the company's stock.

About Fabrinet

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.