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

Fabrinet (NYSE:FN)’s share price gapped down prior to trading on Tuesday . The stock had previously closed at $598.58, but opened at $513.70. Fabrinet shares last traded at $487.3570, with a volume of 575,735 shares changing hands.

Fabrinet News Summary

Here are the key news stories impacting Fabrinet this week:

• Positive Sentiment: Fabrinet reported fiscal fourth-quarter revenue of approximately $1.32 billion, up 44.6% year over year, while adjusted EPS of $4.10 exceeded the $3.81 consensus estimate. Data-center revenue surged 68%, and data-center interconnect sales surpassed a $1 billion annualized run rate. Fabrinet Q4 Earnings Beat Estimates on Strong Data Center Growth
• Positive Sentiment: Management cited strong data-center demand, new transceiver ramps and additional production capacity, with the CEO saying demand shows no clear end in sight. This supports the company’s growth outlook into fiscal 2027 and beyond. FN Q4 Earnings Call Highlights Data Center Growth and Capacity
• Positive Sentiment: Fox Advisors upgraded FN to Overweight. Rosenblatt and Needham also reaffirmed Buy ratings, indicating that several analysts view the selloff as an opportunity tied to long-term AI infrastructure demand. The Fly
• Neutral Sentiment: Fabrinet’s customer exposure includes major technology and networking companies such as Cisco, Nvidia, Amazon and Nokia, reinforcing its role in AI infrastructure but also leaving the stock sensitive to spending trends among large customers. The Customer List Behind Fabrinet’s AI Boom
• Negative Sentiment: Investors were concerned by heavy capital expenditures, which drove non-GAAP free cash flow down to roughly $4 million from $207 million a year earlier. Inventory also rose substantially, while new borrowing at a Thai subsidiary increased concerns about working-capital needs and balance-sheet risk. Fabrinet Sinks as Investors Look Past Record Results
• Negative Sentiment: Although fiscal 2027 guidance was generally strong, investors viewed the first-quarter outlook as softer than needed for a stock that had risen steeply and carried a demanding valuation. Reports also cited Nvidia datacom concerns and broader risk aversion across AI and optical stocks. Fabrinet Reverses Hard Midweek

Wall Street Analyst Weigh In

Several equities research analysts have recently commented on the stock. Needham & Company LLC reissued a “buy” rating and set a $650.00 target price on shares of Fabrinet in a research report on Tuesday. Wall Street Zen cut shares of Fabrinet from a “buy” rating to a “hold” rating in a research report on Monday, July 20th. Rosenblatt Securities reiterated a “buy” rating and set a $750.00 price target on shares of Fabrinet in a research note on Tuesday. JPMorgan Chase & Co. increased their price objective on Fabrinet from $680.00 to $695.00 and gave the stock a “neutral” rating in a research note on Tuesday. Finally, Barclays raised their target price on Fabrinet from $702.00 to $739.00 and gave the company an “overweight” rating in a report on Tuesday. Six equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $649.50.

Fabrinet Stock Down 5.9%

The company has a market capitalization of $16.27 billion, a P/E ratio of 34.81 and a beta of 1.23. The business’s 50-day moving average is $521.88 and its two-hundred day moving average is $568.96.

Fabrinet (NYSE:FN) last issued its quarterly earnings data on Monday, August 17th. The technology company reported $4.10 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.81 by $0.29. The business had revenue of $1.32 billion during the quarter, compared to the consensus estimate of $1.28 billion. Fabrinet had a net margin of 10.19% and a return on equity of 21.23%. The firm’s quarterly revenue was up 44.6% compared to the same quarter last year. During the same period in the prior year, the firm posted $2.65 EPS. Fabrinet has set its Q1 2027 guidance at 4.100-4.250 EPS. Analysts predict that Fabrinet will post 16.46 EPS for the current year.

Insider Transactions at Fabrinet

In other news, Director Homa Bahrami sold 2,500 shares of the firm’s stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $711.91, for a total transaction of $1,779,775.00. Following the completion of the sale, the director directly owned 16,233 shares of the company’s stock, valued at $11,556,435.03. This trade represents a 13.35% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. 0.24% of the stock is owned by company insiders.

Hedge Funds Weigh In On Fabrinet

Several institutional investors have recently added to or reduced their stakes in the stock. Price T Rowe Associates Inc. MD grew its holdings in Fabrinet by 163.0% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 4,041,227 shares of the technology company’s stock valued at $1,839,891,000 after purchasing an additional 2,504,841 shares during the period. Wasatch Advisors LP raised its stake in shares of Fabrinet by 45.1% in the second quarter. Wasatch Advisors LP now owns 1,779,665 shares of the technology company’s stock valued at $524,432,000 after buying an additional 553,196 shares during the period. Paradigm Capital Management Inc. NY bought a new stake in shares of Fabrinet in the second quarter valued at $298,183,000. Norges Bank purchased a new position in shares of Fabrinet during the 4th quarter valued at $193,766,000. Finally, JPMorgan Chase & Co. lifted its position in shares of Fabrinet by 64.8% during the 4th quarter. JPMorgan Chase & Co. now owns 1,065,414 shares of the technology company’s stock valued at $485,063,000 after buying an additional 419,081 shares during the last quarter. 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.