Zacks Investment Research downgraded shares of Jabil (NYSE:JBL) from a hold rating to a sell rating in a report released on Monday morning.
According to Zacks, “Jabil is exposed to significant customer concentration risk which is a major concern for the company. Given the competitive nature of the industry, the uncertainty in demand from or loss of any of its key customers will severely impact the company’s results. Besides, sluggishness in mobility business is a headwind. Additionally, numerous acquisitions are adding to significant integration risks. However, Jabil is benefiting from high growth in the healthcare & packaging business. Shares outperformed the industry in the past one year.”
Several other equities research analysts also recently weighed in on the company. Goldman Sachs Group decreased their price objective on Jabil to $24.00 and set a sell rating for the company in a report on Friday, January 26th. Argus raised Jabil from a hold rating to a buy rating and set a $36.00 price target for the company in a report on Monday, December 18th. Raymond James Financial reaffirmed a hold rating on shares of Jabil in a report on Thursday, December 14th. ValuEngine downgraded Jabil from a strong-buy rating to a buy rating in a report on Monday, December 4th. Finally, UBS Group reaffirmed a buy rating and set a $35.00 price target on shares of Jabil in a report on Tuesday, October 17th. Three investment analysts have rated the stock with a sell rating, six have assigned a hold rating and six have assigned a buy rating to the stock. Jabil currently has an average rating of Hold and a consensus target price of $32.27.
Jabil (NYSE:JBL) last posted its quarterly earnings data on Thursday, December 14th. The technology company reported $0.80 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.79 by $0.01. The business had revenue of $5.59 billion during the quarter, compared to the consensus estimate of $5.50 billion. Jabil had a return on equity of 12.95% and a net margin of 0.54%. The company’s revenue was up 9.4% compared to the same quarter last year. During the same period in the prior year, the company earned $0.69 earnings per share. sell-side analysts predict that Jabil will post 2.06 EPS for the current fiscal year.
The business also recently declared a quarterly dividend, which will be paid on Thursday, March 1st. Investors of record on Thursday, February 15th will be issued a dividend of $0.08 per share. This represents a $0.32 annualized dividend and a dividend yield of 1.27%. The ex-dividend date of this dividend is Wednesday, February 14th. Jabil’s dividend payout ratio is presently 56.14%.
In other Jabil news, CEO Mark T. Mondello sold 30,000 shares of the stock in a transaction on Friday, December 1st. The stock was sold at an average price of $28.48, for a total value of $854,400.00. Following the completion of the transaction, the chief executive officer now owns 1,836,889 shares in the company, valued at $52,314,598.72. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP Sergio Cadavid sold 12,000 shares of the stock in a transaction on Thursday, January 18th. The stock was sold at an average price of $28.50, for a total value of $342,000.00. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 89,830 shares of company stock valued at $2,510,583. Corporate insiders own 2.60% of the company’s stock.
A number of large investors have recently added to or reduced their stakes in the business. IHT Wealth Management LLC raised its position in Jabil by 142.6% in the second quarter. IHT Wealth Management LLC now owns 359 shares of the technology company’s stock worth $159,000 after acquiring an additional 211 shares in the last quarter. Ameritas Investment Partners Inc. raised its position in Jabil by 1.5% in the second quarter. Ameritas Investment Partners Inc. now owns 54,550 shares of the technology company’s stock worth $1,592,000 after acquiring an additional 831 shares in the last quarter. PNC Financial Services Group Inc. raised its position in Jabil by 17.2% in the second quarter. PNC Financial Services Group Inc. now owns 9,607 shares of the technology company’s stock worth $281,000 after acquiring an additional 1,413 shares in the last quarter. Stifel Financial Corp raised its position in Jabil by 8.1% in the second quarter. Stifel Financial Corp now owns 21,572 shares of the technology company’s stock worth $630,000 after acquiring an additional 1,608 shares in the last quarter. Finally, Advisor Group Inc. raised its position in Jabil by 68.2% in the second quarter. Advisor Group Inc. now owns 5,765 shares of the technology company’s stock worth $168,000 after acquiring an additional 2,337 shares in the last quarter. Hedge funds and other institutional investors own 96.79% of the company’s stock.
Jabil Inc, formerly Jabil Circuit, Inc, provides electronic manufacturing services and solutions throughout the world. The Company operates in two segments, which include Electronics Manufacturing Services (EMS) and Diversified Manufacturing Services (DMS). The Company’s EMS segment is focused on leveraging information technology (IT), supply chain design and engineering, technologies centered on core electronics, sharing of its large scale manufacturing infrastructure and the ability to serve a range of markets.
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