Fabrinet (FN) Downgraded by Zacks Investment Research to “Sell”

Zacks Investment Research lowered shares of Fabrinet (NYSE:FN) from a hold rating to a sell rating in a research note published on Friday morning.

According to Zacks, “Fabrinet provides precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers of complex products, such as optical communication components, modules and sub-systems, industrial lasers and sensors. The Company offers a broad range of advanced optical capabilities across the entire manufacturing process, including process engineering, design for manufacturability, supply chain management, manufacturing, final assembly and test. Fabrinet manufactures, assembles, and tests products for customers at its main manufacturing facilities in Bangkok, Thailand. The Company designs and manufactures its own bulk optical materials and components at its facilities in Fuzhou, the People’s Republic of China, and New Jersey, USA. “

A number of other analysts also recently issued reports on FN. Stifel Nicolaus reissued a buy rating and set a $48.00 price target on shares of Fabrinet in a report on Friday, July 14th. BidaskClub raised shares of Fabrinet from a sell rating to a hold rating in a report on Sunday, July 16th. ValuEngine raised shares of Fabrinet from a hold rating to a buy rating in a report on Wednesday, August 2nd. B. Riley reissued a buy rating and set a $44.75 price target on shares of Fabrinet in a report on Friday, August 18th. Finally, Northland Securities set a $50.00 price target on shares of Fabrinet and gave the stock a buy rating in a report on Tuesday, August 22nd. Two research analysts have rated the stock with a sell rating, two have assigned a hold rating, four have given a buy rating and one has assigned a strong buy rating to the stock. The stock has a consensus rating of Hold and a consensus price target of $46.42.

Fabrinet (NYSE:FN) traded up $0.28 during mid-day trading on Friday, hitting $31.11. 405,600 shares of the stock traded hands, compared to its average volume of 572,701. The stock has a market cap of $1,169.39, a P/E ratio of 12.39, a P/E/G ratio of 1.17 and a beta of 1.03. The company has a debt-to-equity ratio of 0.03, a current ratio of 2.70 and a quick ratio of 1.80. Fabrinet has a fifty-two week low of $28.60 and a fifty-two week high of $49.63.

Fabrinet (NYSE:FN) last released its quarterly earnings data on Monday, August 21st. The technology company reported $0.72 EPS for the quarter, missing the consensus estimate of $0.83 by ($0.11). The business had revenue of $370.50 million during the quarter, compared to analysts’ expectations of $363.41 million. Fabrinet had a net margin of 6.60% and a return on equity of 14.35%. The firm’s revenue was up 34.0% on a year-over-year basis. During the same period last year, the company earned $0.60 earnings per share. equities analysts forecast that Fabrinet will post 2.22 earnings per share for the current year.

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Fabrinet announced that its Board of Directors has approved a share buyback plan on Monday, August 21st that allows the company to repurchase $30.00 million in shares. This repurchase authorization allows the technology company to repurchase up to 21% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s leadership believes its shares are undervalued.

In other news, insider David T. Mitchell sold 50,000 shares of the stock in a transaction dated Thursday, November 9th. The shares were sold at an average price of $30.03, for a total value of $1,501,500.00. Following the completion of the sale, the insider now directly owns 111,057 shares in the company, valued at $3,335,041.71. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CEO David T. Mitchell sold 105,000 shares of the stock in a transaction dated Friday, August 25th. The shares were sold at an average price of $38.63, for a total transaction of $4,056,150.00. Following the completion of the sale, the chief executive officer now owns 111,057 shares of the company’s stock, valued at $4,290,131.91. The disclosure for this sale can be found here. Insiders sold 257,500 shares of company stock valued at $9,535,850 over the last quarter. Company insiders own 3.30% of the company’s stock.

Several hedge funds and other institutional investors have recently modified their holdings of the company. Alps Advisors Inc. raised its position in shares of Fabrinet by 0.3% in the second quarter. Alps Advisors Inc. now owns 12,341 shares of the technology company’s stock valued at $526,000 after buying an additional 32 shares during the last quarter. Suntrust Banks Inc. increased its position in Fabrinet by 0.5% during the second quarter. Suntrust Banks Inc. now owns 7,829 shares of the technology company’s stock worth $333,000 after purchasing an additional 37 shares during the last quarter. Pinebridge Investments L.P. increased its position in Fabrinet by 2.0% during the second quarter. Pinebridge Investments L.P. now owns 4,918 shares of the technology company’s stock worth $210,000 after purchasing an additional 98 shares during the last quarter. Louisiana State Employees Retirement System increased its position in Fabrinet by 0.7% during the second quarter. Louisiana State Employees Retirement System now owns 15,200 shares of the technology company’s stock worth $648,000 after purchasing an additional 100 shares during the last quarter. Finally, Arizona State Retirement System increased its position in Fabrinet by 1.0% during the second quarter. Arizona State Retirement System now owns 19,460 shares of the technology company’s stock worth $830,000 after purchasing an additional 200 shares during the last quarter. Institutional investors and hedge funds own 94.59% of the company’s stock.

About Fabrinet

Fabrinet provides optical packaging and precision optical, electro-mechanical and electronic manufacturing services to original equipment manufacturers (OEMs) of products, such as optical communication components, modules and sub-systems, industrial lasers, medical devices and sensors. The Company offers a range of optical and electro-mechanical capabilities across the manufacturing process, including process design and engineering, supply chain management, manufacturing, complex printed circuit board assembly, advanced packaging, integration, final assembly and test.

Analyst Recommendations for Fabrinet (NYSE:FN)

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