Barclays Issues Pessimistic Forecast for Fabrinet (NYSE:FN) Stock Price

Fabrinet (NYSE:FN) had its price target cut by analysts at Barclays from $739.00 to $496.00 in a report issued on Wednesday, Benzinga reports. The brokerage currently has an “overweight” rating on the technology company’s stock. Barclays‘s price target indicates a potential upside of 47.85% from the stock’s current price.

FN has been the topic of a number of other reports. Fox Advisors upgraded shares of Fabrinet from an “equal weight” rating to an “overweight” rating in a report on Wednesday, August 19th. Susquehanna reduced their target price on shares of Fabrinet from $850.00 to $600.00 and set a “positive” rating for the company in a report on Wednesday, October 21st. Zacks Research raised shares of Fabrinet from a “hold” rating to a “strong-buy” rating in a research report on Monday, October 5th. B. Riley Financial decreased their target price on shares of Fabrinet from $431.00 to $385.00 and set a “neutral” rating for the company in a research report on Friday, October 30th. Finally, JPMorgan Chase & Co. lifted their price target on shares of Fabrinet from $465.00 to $470.00 and gave the company a “neutral” rating in a research note on Tuesday. One research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, Fabrinet presently has a consensus rating of “Moderate Buy” and an average target price of $548.88.

Fabrinet Trading Down 7.7%

Shares of FN stock traded down $27.86 on Wednesday, hitting $335.47. 810,797 shares of the stock were exchanged, compared to its average volume of 869,504. The firm has a market capitalization of $12.02 billion, a P/E ratio of 25.33 and a beta of 1.35. The business has a 50-day moving average of $400.90 and a 200 day moving average of $520.87. Fabrinet has a fifty-two week low of $305.63 and a fifty-two week high of $748.89.

Fabrinet (NYSE:FN) last announced its earnings results on Monday, November 2nd. The technology company reported $4.34 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $4.21 by $0.13. The business had revenue of $1.47 billion for the quarter, compared to analyst estimates of $1.42 billion. Fabrinet had a return on equity of 22.81% and a net margin of 9.35%. Fabrinet’s revenue for the quarter was up 50.7% compared to the same quarter last year. During the same quarter last year, the firm earned $2.92 EPS. As a group, research analysts forecast that Fabrinet will post 17.57 EPS for the current fiscal year.

Insider Activity at Fabrinet

In related news, EVP Edward Archer sold 2,500 shares of the firm’s stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $385.91, for a total value of $964,775.00. Following the completion of the transaction, the executive vice president directly owned 7,007 shares of the company’s stock, valued at approximately $2,704,071.37. This trade represents a 26.30% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 0.22% of the company’s stock.

Institutional Trading of Fabrinet

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Paradigm Capital Management Inc. NY bought a new position in shares of Fabrinet in the 2nd quarter valued at about $298,183,000. Allspring Global Investments Holdings LLC increased its stake in shares of Fabrinet by 108.1% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 165,146 shares of the technology company’s stock worth $88,350,000 after purchasing an additional 85,780 shares during the last quarter. Rokos Capital Management LLP acquired a new stake in Fabrinet in the 1st quarter valued at about $31,753,000. Bowen Hanes & Co. Inc. lifted its stake in Fabrinet by 97.4% in the 1st quarter. Bowen Hanes & Co. Inc. now owns 98,715 shares of the technology company’s stock valued at $51,482,000 after purchasing an additional 48,715 shares during the last quarter. Finally, Calamos Advisors LLC grew its holdings in Fabrinet by 1,469.7% during the third quarter. Calamos Advisors LLC now owns 51,800 shares of the technology company’s stock worth $21,977,000 after purchasing an additional 48,500 shares during the period. 97.38% of the stock is owned by institutional investors.

Fabrinet News Summary

Here are the key news stories impacting Fabrinet this week:

• Positive Sentiment: Fiscal Q1 revenue rose 51% year over year to $1.47 billion, exceeding estimates, while EPS of $4.34 also beat expectations. Fabrinet Q1 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Management’s Q2 revenue and EPS guidance came in above consensus, reinforcing expectations for continued growth. Data-center revenue reportedly surged 78%, with demand tied to AI and optical networking helping drive results. FN Q1 Earnings Beat Estimates, Data Center Demand Aids Revenues
• Positive Sentiment: Fabrinet is expanding manufacturing capacity, including work on a new facility described as having roughly $3 billion in capacity, to support anticipated demand. Buyback news also featured among the factors behind the post-results rally. Fabrinet anticipates Q2 revenue while starting Building 11
• Negative Sentiment: Investors are also scrutinizing whether rapid growth will translate into proportionate earnings and cash flow. Coverage highlighted cash demands from expansion and a new global minimum tax, while the latest headline flagged margin questions. Fabrinet’s 51% Growth Comes at a Cash Cost

Fabrinet Company Profile

Fabrinet (NYSE: FN) is a provider of outsourced manufacturing services for complex optical, electronic and electromechanical products. The company works with original equipment manufacturers and other technology companies to design, manufacture, assemble, test and distribute products used in optical communications, industrial lasers, automotive applications, medical devices and other advanced technology markets.

Its capabilities include precision optical packaging, optical and electronic assembly, printed circuit board assembly, electromechanical manufacturing, engineering support, supply-chain management and testing.