Fabrinet (NYSE:FN) Shares Gap Down – What’s Next?

Fabrinet (NYSE:FN) gapped down prior to trading on Tuesday . The stock had previously closed at $499.61, but opened at $452.00. Fabrinet shares last traded at $425.7870, with a volume of 292,032 shares.

Key Fabrinet News

Here are the key news stories impacting Fabrinet this week:

• Positive Sentiment: Company beat consensus and reported record Q2 revenue of $1.13B and EPS of $3.36, with revenue up ~36% year‑over‑year — results described as “record” by management. GlobeNewswire Press Release
• Positive Sentiment: Management raised Q3 FY2026 EPS guidance to $3.45–$3.60 (above consensus) and gave revenue guidance around $1.2B, signaling continued demand strength. Guidance / Slide Deck
• Positive Sentiment: Wall Street support remains: Needham and Rosenblatt reaffirmed Buy ratings with $540 and $550 targets respectively — analysts still see multi‑quarter upside. Benzinga (analyst notes)
• Neutral Sentiment: Earnings call transcript and highlights describe strategic growth areas (HPC/AI exposure) and FX impacts; useful to parse management commentary for order cadence and margin drivers. Earnings Call Transcript Yahoo Finance Highlights
• Negative Sentiment: Despite strong headline results, the stock plunged in after‑hours / intraday trading — multiple outlets characterize the move as a sharp selloff. This negative price action appears to reflect investor focus on items beyond headline EPS/revenue. Seeking Alpha – Crash Coverage Investing.com – Shares Tumble
• Negative Sentiment: Third‑party screens flagged deterioration in operating cash flow, a large increase in capex and a notable drop in cash balances this quarter, plus material insider selling — all cited as potential catalysts for the selloff. QuiverQuant – Financial and Insider Notes
• Negative Sentiment: Pre‑market weakness and broader sector moves amplified the decline in FN (reports noted FN among larger pre‑market decliners). Short‑term momentum and trading flows appear to have intensified the drop. Benzinga – Movers

Analysts Set New Price Targets

A number of equities research analysts have recently issued reports on FN shares. Rosenblatt Securities reaffirmed a “buy” rating and issued a $550.00 price objective on shares of Fabrinet in a research note on Tuesday. Zacks Research lowered shares of Fabrinet from a “strong-buy” rating to a “hold” rating in a research note on Monday, January 5th. Weiss Ratings reiterated a “buy (b-)” rating on shares of Fabrinet in a research note on Monday, December 29th. Susquehanna increased their price target on Fabrinet from $550.00 to $570.00 and gave the company a “positive” rating in a report on Thursday, January 22nd. Finally, Northland Securities set a $600.00 price target on Fabrinet in a report on Monday, December 22nd. Seven analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, Fabrinet presently has an average rating of “Moderate Buy” and a consensus price target of $507.50.

Fabrinet Stock Down 13.2%

The stock has a market capitalization of $15.54 billion, a P/E ratio of 44.18 and a beta of 1.04. The stock’s 50 day moving average price is $473.49 and its 200-day moving average price is $406.16.

Fabrinet (NYSE:FN) last posted its quarterly earnings data on Monday, February 2nd. The technology company reported $3.36 EPS for the quarter, topping the consensus estimate of $3.26 by $0.10. Fabrinet had a net margin of 9.77% and a return on equity of 18.16%. The business had revenue of $1.13 billion during the quarter, compared to the consensus estimate of $1.08 billion. During the same period in the previous year, the firm posted $2.61 earnings per share. The business’s revenue for the quarter was up 35.9% compared to the same quarter last year. Fabrinet has set its Q3 2026 guidance at 3.450-3.600 EPS. Analysts anticipate that Fabrinet will post 9.4 earnings per share for the current year.

Insider Buying and Selling at Fabrinet

In related news, Director Homa Bahrami sold 3,500 shares of the firm’s stock in a transaction dated Monday, December 1st. The shares were sold at an average price of $453.75, for a total transaction of $1,588,125.00. Following the completion of the sale, the director directly owned 18,316 shares in the company, valued at approximately $8,310,885. This trade represents a 16.04% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, Director Thomas F. Kelly sold 2,200 shares of Fabrinet stock in a transaction dated Thursday, December 4th. The shares were sold at an average price of $464.14, for a total transaction of $1,021,108.00. Following the sale, the director owned 18,789 shares of the company’s stock, valued at approximately $8,720,726.46. This represents a 10.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 28,151 shares of company stock worth $12,643,707. Insiders own 0.24% of the company’s stock.

Institutional Investors Weigh In On Fabrinet

Large investors have recently modified their holdings of the stock. Westend Capital Management LLC purchased a new stake in Fabrinet during the fourth quarter worth $29,000. Root Financial Partners LLC purchased a new stake in shares of Fabrinet in the third quarter valued at about $34,000. Elevation Point Wealth Partners LLC acquired a new stake in shares of Fabrinet in the second quarter valued at approximately $35,000. First Horizon Advisors Inc. increased its stake in shares of Fabrinet by 124.2% during the 2nd quarter. First Horizon Advisors Inc. now owns 139 shares of the technology company’s stock worth $41,000 after purchasing an additional 77 shares in the last quarter. Finally, Cullen Frost Bankers Inc. raised its position in shares of Fabrinet by 118.5% during the 2nd quarter. Cullen Frost Bankers Inc. now owns 142 shares of the technology company’s stock worth $42,000 after purchasing an additional 77 shares during the last quarter. Hedge funds and other institutional investors own 97.38% of the company’s stock.

About Fabrinet

Fabrinet is a global provider of advanced optical packaging and precision optical, electro‐mechanical and electronic manufacturing services (CEM). The company specializes in complex manufacturing processes for original equipment manufacturers (OEMs) in communications, data center, industrial, instrumentation and medical markets. Key capabilities include high‐precision fiber alignment, micro‐assembly, testing and diagnostics, and integration of electro‐optic subassemblies.

Incorporated in 2000, Fabrinet operates under a corporate structure headquartered in Singapore with additional regional offices and design centers in the Americas, Europe and Asia.