Needham & Company LLC Reaffirms “Buy” Rating for Fabrinet (FN)
Fabrinet (NYSE:FN)‘s stock had its “buy” rating reissued by equities research analysts at Needham & Company LLC in a report released on Thursday.
Other equities research analysts have also issued research reports about the company. B. Riley reaffirmed a “buy” rating and issued a $46.50 price target on shares of Fabrinet in a research report on Wednesday, August 23rd. ValuEngine raised Fabrinet from a “hold” rating to a “buy” rating in a research report on Wednesday, August 2nd. Stifel Nicolaus reissued a “buy” rating and set a $48.00 target price on shares of Fabrinet in a research report on Friday, July 14th. Northland Securities set a $50.00 target price on Fabrinet and gave the stock a “buy” rating in a research report on Tuesday, August 22nd. Finally, Zacks Investment Research raised Fabrinet from a “sell” rating to a “hold” rating in a research report on Wednesday, July 12th. Two analysts have rated the stock with a sell rating, one has given a hold rating and six have assigned a buy rating to the company’s stock. The stock presently has an average rating of “Hold” and a consensus price target of $51.58.
Fabrinet (NYSE:FN) last posted its quarterly earnings results on Monday, August 21st. The technology company reported $0.72 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.83 by ($0.11). The company had revenue of $370.50 million during the quarter, compared to analyst estimates of $363.41 million. Fabrinet had a net margin of 6.84% and a return on equity of 15.32%. Fabrinet’s revenue for the quarter was up 34.0% on a year-over-year basis. During the same period in the prior year, the business earned $0.60 EPS.
Fabrinet declared that its board has approved a stock repurchase program on Monday, August 21st that permits the company to buyback $30.00 million in outstanding shares. This buyback authorization permits the technology company to buy up to 21% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s leadership believes its stock is undervalued.
In other Fabrinet news, CFO Toh-Seng Ng sold 22,500 shares of Fabrinet stock in a transaction that occurred on Wednesday, August 30th. The stock was sold at an average price of $39.00, for a total transaction of $877,500.00. Following the transaction, the chief financial officer now owns 201,749 shares of the company’s stock, valued at $7,868,211. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Thomas F. Kelly sold 30,000 shares of Fabrinet stock in a transaction that occurred on Tuesday, August 29th. The stock was sold at an average price of $38.24, for a total value of $1,147,200.00. Following the transaction, the director now directly owns 64,635 shares in the company, valued at approximately $2,471,642.40. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 207,500 shares of company stock worth $8,034,350. 4.30% of the stock is currently owned by corporate insiders.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. BlackRock Inc. increased its position in Fabrinet by 0.4% during the second quarter. BlackRock Inc. now owns 4,328,966 shares of the technology company’s stock worth $184,673,000 after buying an additional 17,385 shares during the period. FMR LLC increased its position in Fabrinet by 31.8% during the second quarter. FMR LLC now owns 2,772,212 shares of the technology company’s stock worth $118,262,000 after buying an additional 669,201 shares during the period. Dimensional Fund Advisors LP increased its position in Fabrinet by 0.3% during the second quarter. Dimensional Fund Advisors LP now owns 2,027,764 shares of the technology company’s stock worth $86,506,000 after buying an additional 5,583 shares during the period. Vanguard Group Inc. increased its position in Fabrinet by 4.8% during the second quarter. Vanguard Group Inc. now owns 1,984,041 shares of the technology company’s stock worth $84,640,000 after buying an additional 90,477 shares during the period. Finally, Congress Asset Management Co. MA increased its position in Fabrinet by 23.6% during the second quarter. Congress Asset Management Co. MA now owns 1,727,179 shares of the technology company’s stock worth $73,681,000 after buying an additional 330,178 shares during the period. 93.84% of the stock is currently owned by institutional investors.
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.
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