Fabrinet (NYSE:FN) Trading 4.6% Higher - Here's Why

Key Points

• Fabrinet shares rose 4.6% to about $392.27 in Wednesday trading, although volume was roughly 93% below the average.
• The company’s latest quarterly results beat expectations, with EPS of $4.10 versus $3.81 expected and revenue of $1.32 billion, up 44.6% year over year.
• Analysts maintain a “Moderate Buy” consensus, with an average price target of $649.50; however, some firms recently downgraded the stock to “Hold.”

Shares of Fabrinet (NYSE:FN - Get Free Report) shot up 4.6% during trading on Wednesday . The company traded as high as $391.51 and last traded at $392.2740. Approximately 62,310 shares were traded during mid-day trading, a decline of 93% from the average daily volume of 846,222 shares. The stock had previously closed at $374.91.

Wall Street Analysts Forecast Growth

FN has been the subject of several recent analyst reports. Needham & Company LLC reaffirmed a "buy" rating and set a $650.00 price objective on shares of Fabrinet in a research report on Tuesday, August 18th. Rosenblatt Securities restated a "buy" rating and issued a $750.00 target price on shares of Fabrinet in a research report on Tuesday, August 18th. Weiss Ratings downgraded shares of Fabrinet from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, September 9th. Barclays upped their price target on shares of Fabrinet from $702.00 to $739.00 and gave the stock an "overweight" rating in a report on Tuesday, August 18th. Finally, Zacks Research lowered shares of Fabrinet from a "strong-buy" rating to a "hold" rating in a research report on Monday, June 15th. Six research analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $649.50.

Fabrinet Trading Up 5.8%

The business's 50 day moving average price is $466.44 and its two-hundred day moving average price is $557.04. The company has a market capitalization of $14.21 billion, a price-to-earnings ratio of 30.37 and a beta of 1.21.

Fabrinet (NYSE:FN - Get Free Report) last released its quarterly earnings data on Tuesday, August 18th. The technology company reported $4.10 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.81 by $0.29. Fabrinet had a net margin of 10.19% and a return on equity of 21.23%. The business had revenue of $1.32 billion during the quarter, compared to analysts' expectations of $1.28 billion. During the same period in the prior year, the company earned $2.65 EPS. The firm's quarterly revenue was up 44.6% compared to the same quarter last year. Analysts expect that Fabrinet will post 17.5 EPS for the current year.

Insider Activity at Fabrinet

In other news, EVP Edward Archer sold 2,500 shares of the business'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 sale, the executive vice president directly owned 7,007 shares in the company, valued at approximately $2,704,071.37. The trade was a 26.30% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders own 0.24% of the company's stock.

Institutional Investors Weigh In On Fabrinet

Institutional investors have recently added to or reduced their stakes in the business. Paradigm Capital Management Inc. NY acquired a new position in shares of Fabrinet in the 2nd quarter valued at about $298,183,000. Norges Bank acquired a new stake in Fabrinet during the fourth quarter worth approximately $193,766,000. JPMorgan Chase & Co. grew its stake in Fabrinet by 64.8% during the fourth quarter. JPMorgan Chase & Co. now owns 1,065,414 shares of the technology company's stock worth $485,063,000 after purchasing an additional 419,081 shares during the period. Polar Capital Holdings Plc increased its holdings in Fabrinet by 58.9% in the fourth quarter. Polar Capital Holdings Plc now owns 551,916 shares of the technology company's stock worth $251,276,000 after purchasing an additional 204,612 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership increased its holdings in Fabrinet by 42.1% in the fourth quarter. Arrowstreet Capital Limited Partnership now owns 473,902 shares of the technology company's stock worth $215,758,000 after purchasing an additional 140,347 shares in the last quarter. 97.38% of the stock is owned by institutional investors.

Fabrinet Company Profile

Fabrinet NYSE: FN is a provider of advanced manufacturing services for original equipment manufacturers and other technology companies. The company specializes in precision optical, electromechanical and electronic manufacturing, helping customers design, assemble, test and package complex products.

Its capabilities support products used in optical communications, including components, modules and transceivers for telecommunications and data-center networks. Fabrinet also provides manufacturing services for industrial lasers, medical devices, automotive applications, and aerospace and defense products.

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