Fabrinet (NYSE:FN) Shares Gap Down – Time to Sell?

Fabrinet (NYSE:FN)’s share price gapped down before the market opened on Tuesday . The stock had previously closed at $717.80, but opened at $642.99. Fabrinet shares last traded at $694.23, with a volume of 518,281 shares trading hands.

Key Fabrinet News

Here are the key news stories impacting Fabrinet this week:

• Positive Sentiment: Q3 results beat expectations — non?GAAP EPS $3.72 vs. consensus ~$3.58 and revenue ~ $1.21B (y/y growth ~39%). Strong margins and year-over-year profit improvement support valuation. GlobeNewswire
• Positive Sentiment: Analyst optimism: Rosenblatt raised its FN price target to $750 (Buy) and Needham reaffirmed a Buy with an $800 target — both imply meaningful upside from prior levels and can support buying interest. Benzinga (Rosenblatt) TickerReport (Needham)
• Neutral Sentiment: Q4 guidance came in roughly in-line with Street expectations (management guided EPS ~3.72–3.87 and revenue in the ~$1.25–1.30B range), leaving limited upside for near-term estimates — neither clearly bullish nor deeply disappointing on its face. Seeking Alpha
• Neutral Sentiment: The full earnings call/transcript is available for detail on program ramps and datacom commentary — useful for investors who want management color on customer ramps and supply dynamics. Earnings Call Transcript
• Negative Sentiment: Market reaction: Despite the beat, the stock fell as investors reacted to guidance that left little room for upside, prompting a “sell?the?news” move, profit?taking after a run, and multiple compression. Benzinga
• Negative Sentiment: Operational/cash flow flags: third?party coverage noted a steep drop in operating cash flow and a large jump in capex in the quarter, and Quiver/others highlight sizable insider selling activity — items that may worry short?term traders and pressure the stock. QuiverQuant

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on FN shares. JPMorgan Chase & Co. lowered Fabrinet from an “overweight” rating to a “neutral” rating and raised their price target for the company from $530.00 to $700.00 in a research note on Thursday, April 16th. Weiss Ratings lowered Fabrinet from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, April 8th. B. Riley Financial raised their price target on Fabrinet from $366.00 to $452.00 and gave the company a “neutral” rating in a research note on Tuesday, February 3rd. Zacks Research lowered Fabrinet from a “strong-buy” rating to a “hold” rating in a research note on Monday, April 6th. Finally, Barclays restated an “overweight” rating and set a $702.00 price target on shares of Fabrinet in a research note on Tuesday. Five analysts have rated the stock with a Buy rating and five have given a Hold rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $664.25.

Fabrinet Stock Down 5.6%

The firm has a 50 day moving average price of $588.72 and a 200 day moving average price of $504.95. The stock has a market cap of $24.27 billion, a PE ratio of 64.88 and a beta of 1.22.

Fabrinet (NYSE:FN) last posted its earnings results on Monday, May 4th. The technology company reported $3.72 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.58 by $0.14. Fabrinet had a return on equity of 18.69% and a net margin of 9.69%.The company had revenue of $1.21 billion for the quarter, compared to analyst estimates of $1.19 billion. During the same quarter in the previous year, the firm earned $2.52 earnings per share. The firm’s quarterly revenue was up 39.3% compared to the same quarter last year. Fabrinet has set its Q4 2026 guidance at 3.720-3.870 EPS. Equities analysts forecast that Fabrinet will post 12.8 earnings per share for the current year.

Hedge Funds Weigh In On Fabrinet

Several institutional investors and hedge funds have recently added to or reduced their stakes in FN. Ashton Thomas Private Wealth LLC purchased a new position in Fabrinet in the first quarter valued at about $203,000. Empowered Funds LLC purchased a new position in Fabrinet in the first quarter valued at about $2,331,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of Fabrinet by 4.9% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 79,444 shares of the technology company’s stock worth $15,691,000 after acquiring an additional 3,717 shares during the last quarter. M&T Bank Corp purchased a new stake in shares of Fabrinet during the second quarter worth about $214,000. Finally, EverSource Wealth Advisors LLC grew its stake in shares of Fabrinet by 574.7% during the second quarter. EverSource Wealth Advisors LLC now owns 533 shares of the technology company’s stock worth $157,000 after acquiring an additional 454 shares during the last quarter. Hedge funds and other institutional investors own 97.38% of the company’s stock.

Fabrinet Company Profile

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.