Fabrinet (NYSE:FN) Stock Price Down 7.6% - Time to Sell?

Key Points

• Fabrinet shares fell 7.6% to about $449.14, trading near the 50-day moving average of $450.98 and well below the 200-day average of $544.53.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $649.50, despite some recent downgrades to “Hold.”
• The company reported strong quarterly results, including $4.10 in EPS versus the $3.81 estimate and 44.6% year-over-year revenue growth; however, an executive recently sold 2,500 shares, and insiders own only 0.24% of the stock.

Fabrinet (NYSE:FN - Get Free Report) shares dropped 7.6% during trading on Monday. The stock traded as low as $451.26 and last traded at $449.1380. 559,818 shares were traded during mid-day trading, a decline of 34% from the average session volume of 848,707 shares. The stock had previously closed at $486.28.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on FN shares. Zacks Research raised Fabrinet from a "hold" rating to a "strong-buy" rating in a research note on Monday, October 5th. JPMorgan Chase & Co. raised their price objective on Fabrinet from $680.00 to $695.00 and gave the company a "neutral" rating in a research note on Tuesday, August 18th. Wall Street Zen lowered Fabrinet from a "buy" rating to a "hold" rating in a research report on Monday, July 20th. Needham & Company LLC reaffirmed a "buy" rating and set a $650.00 target price on shares of Fabrinet in a research report on Tuesday, August 18th. Finally, Weiss Ratings cut Fabrinet from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, September 9th. One investment analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, Fabrinet currently has a consensus rating of "Moderate Buy" and an average target price of $649.50.

Fabrinet Trading Down 8.3%

The stock's 50-day simple moving average is $450.98 and its 200-day simple moving average is $544.53. The firm has a market capitalization of $15.99 billion, a P/E ratio of 34.21 and a beta of 1.23.

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

Insider Activity

In other news, EVP Edward Archer sold 2,500 shares of Fabrinet stock in a transaction on Thursday, September 3rd. The stock was 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. The trade was a 26.30% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.24% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Fabrinet

Several institutional investors have recently added to or reduced their stakes in the stock. Continuum Advisory LLC purchased a new position in shares of Fabrinet during the second quarter worth about $25,000. Cassaday & Co Wealth Management LLC purchased a new stake in Fabrinet in the first quarter valued at approximately $31,000. Byrne Asset Management LLC bought a new stake in Fabrinet during the third quarter valued at approximately $27,000. Sunbelt Securities Inc. bought a new stake in Fabrinet during the first quarter valued at approximately $66,000. Finally, Root Financial Partners LLC lifted its position in Fabrinet by 29.2% during the first quarter. Root Financial Partners LLC now owns 146 shares of the technology company's stock valued at $76,000 after purchasing an additional 33 shares during the last quarter. Institutional investors own 97.38% of the company's stock.

Fabrinet Company Profile

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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