Fabrinet (NYSE:FN) Shares Down 9.2% - Here's What Happened

Key Points

• Fabrinet shares fell 9.2% to about $321, while trading volume was 86% below its average.
• The company’s latest quarter beat estimates: adjusted earnings were $4.34 per share versus $4.21 expected, and revenue of $1.47 billion was up 50.7% year over year.
• Analysts maintain a consensus “Moderate Buy” rating and an average price target of $548.88, though several firms recently lowered their targets.

Shares of Fabrinet (NYSE:FN - Get Free Report) fell 9.2% on Friday. The stock traded as low as $319.01 and last traded at $321.1140. Approximately 119,717 shares were traded during trading, a decline of 86% from the average daily volume of 885,097 shares. The stock had previously closed at $353.83.

Analysts Set New Price Targets

A number of brokerages recently issued reports on FN. Fox Advisors raised Fabrinet from an "equal weight" rating to an "overweight" rating in a report on Wednesday, August 19th. Wall Street Zen cut shares of Fabrinet from a "buy" rating to a "hold" rating in a report on Monday, July 20th. Needham & Company LLC restated a "buy" rating and set a $500.00 price objective on shares of Fabrinet in a research report on Tuesday, November 3rd. Barclays lowered their target price on shares of Fabrinet from $739.00 to $496.00 and set an "overweight" rating for the company in a report on Wednesday, November 4th. Finally, Susquehanna dropped their target price on shares of Fabrinet from $850.00 to $600.00 and set a "positive" rating on the stock in a research report on Wednesday, October 21st. One investment 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 company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $548.88.

Fabrinet Price Performance

The firm has a market capitalization of $11.58 billion, a PE ratio of 24.50 and a beta of 1.35. The company has a current ratio of 2.04, a quick ratio of 1.33 and a debt-to-equity ratio of 0.03. The company has a fifty day moving average price of $390.47 and a two-hundred day moving average price of $516.02.

Fabrinet (NYSE:FN - Get Free Report) last released its quarterly earnings results on Monday, November 2nd. The technology company reported $4.34 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $4.21 by $0.13. The firm had revenue of $1.47 billion for the quarter, compared to the consensus estimate of $1.42 billion. Fabrinet had a return on equity of 22.32% and a net margin of 9.35%. The firm's quarterly revenue was up 50.7% compared to the same quarter last year. During the same quarter last year, the business posted $2.92 EPS. Sell-side analysts forecast that Fabrinet will post 18.96 earnings per share for the current year.

Insider Buying and Selling

In related news, EVP Edward Archer sold 2,500 shares of the company's stock in a transaction on 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 sale, the executive vice president owned 7,007 shares in the company, valued at $2,704,071.37. This represents a 26.30% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. 0.22% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Fabrinet

Institutional investors and hedge funds have recently made changes to their positions in the business. B.A. Schrock Wealth Management Inc. purchased a new stake in Fabrinet during the 3rd quarter valued at approximately $1,305,000. Great Lakes Advisors LLC acquired a new stake in Fabrinet during the 2nd quarter worth approximately $3,024,000. Engineers Gate Manager LP acquired a new stake in Fabrinet during the 2nd quarter worth approximately $2,491,000. Sei Investments Co. grew its stake in shares of Fabrinet by 22.0% in the 1st 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 last quarter. Finally, California State Teachers Retirement System grew its stake in shares of Fabrinet by 23.0% in the 1st 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 during the last quarter. 97.38% of the stock is owned by hedge funds and other institutional investors.

About Fabrinet

Fabrinet NYSE: FN is a provider of advanced optical packaging and precision manufacturing services. The company works with original equipment manufacturers and other technology companies to produce complex products that require specialized engineering and manufacturing capabilities. Its services include product design and engineering support, prototyping, supply-chain management, and manufacturing. Fabrinet's products serve markets including optical communications, industrial lasers, automotive technology, and medical devices.

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