Jabil (JBL) Lowered to Sell at Zacks Investment Research

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Zacks Investment Research downgraded shares of Jabil (NYSE:JBL) from a hold rating to a sell rating in a research note issued to investors on Monday, Zacks.com reports.

According to Zacks, “Jabil is expected to suffer from weakness in mobility and sluggish semiconductor capital equipment business. These negatively impacted the company’s second-quarter fiscal 2019 results and are also expected to hurt top-line growth at least in the near term despite new contract wins in healthcare, automotive, cloud and 5G. Moreover, increasing competition in the industry is weighing on its margins. However, focus on end-market diversification is a key catalyst. The Johnson & Johnson deal is a major growth driver for Jabil. During the second quarter, Jabil transitioned the first two sites from Johnson & Johnson Medical Devices Companies (JJMDC). Notably, shares have outperformed the industry in the past year.”

Other equities research analysts have also issued research reports about the stock. TheStreet raised shares of Jabil from a c+ rating to a b rating in a report on Monday, February 25th. Raymond James raised shares of Jabil from a market perform rating to a strong-buy rating and set a $34.00 price target on the stock in a report on Monday, April 1st. Two equities research analysts have rated the stock with a sell rating, four have assigned a hold rating, one has given a buy rating and one has given a strong buy rating to the company’s stock. The company currently has an average rating of Hold and an average target price of $29.17.

Shares of JBL stock opened at $30.51 on Monday. Jabil has a 1 year low of $21.49 and a 1 year high of $31.50. The firm has a market cap of $4.62 billion, a P/E ratio of 14.06, a P/E/G ratio of 1.09 and a beta of 0.65. The company has a debt-to-equity ratio of 1.34, a quick ratio of 0.60 and a current ratio of 1.02.

Jabil (NYSE:JBL) last announced its earnings results on Thursday, March 14th. The technology company reported $0.43 earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.49 by ($0.06). Jabil had a return on equity of 18.89% and a net margin of 0.74%. The company had revenue of $6.01 billion for the quarter, compared to the consensus estimate of $6.12 billion. During the same period last year, the firm posted $0.66 EPS. The company’s revenue was up 13.3% compared to the same quarter last year. Analysts predict that Jabil will post 2.3 EPS for the current year.

The firm also recently declared a quarterly dividend, which will be paid on Monday, June 3rd. Shareholders of record on Wednesday, May 15th will be issued a $0.08 dividend. This represents a $0.32 annualized dividend and a yield of 1.05%. The ex-dividend date is Tuesday, May 14th. Jabil’s dividend payout ratio (DPR) is presently 14.75%.

In other news, CEO Alessandro Parimbelli sold 17,000 shares of the company’s stock in a transaction dated Monday, April 8th. The shares were sold at an average price of $29.22, for a total value of $496,740.00. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Steven D. Borges sold 5,022 shares of the company’s stock in a transaction dated Tuesday, February 12th. The stock was sold at an average price of $28.00, for a total transaction of $140,616.00. The disclosure for this sale can be found here. Insiders sold a total of 73,910 shares of company stock worth $2,175,146 in the last three months. Insiders own 2.90% of the company’s stock.

Several institutional investors and hedge funds have recently bought and sold shares of JBL. JOYN Advisors Inc. grew its holdings in shares of Jabil by 2,157.4% in the 4th quarter. JOYN Advisors Inc. now owns 1,061 shares of the technology company’s stock worth $26,000 after purchasing an additional 1,014 shares during the last quarter. IMS Capital Management bought a new stake in shares of Jabil in the 3rd quarter worth about $31,000. Penserra Capital Management LLC bought a new stake in shares of Jabil in the 4th quarter worth about $34,000. Mackey Komara & Dankovich LLC bought a new stake in shares of Jabil in the 4th quarter worth about $38,000. Finally, Oregon Public Employees Retirement Fund grew its holdings in shares of Jabil by 2,076.1% in the 4th quarter. Oregon Public Employees Retirement Fund now owns 1,511,446 shares of the technology company’s stock worth $61,000 after purchasing an additional 1,441,988 shares during the last quarter. 91.80% of the stock is currently owned by institutional investors and hedge funds.

About Jabil

Jabil Inc provides electronic manufacturing services and solutions worldwide. The company operates through two segments, Electronics Manufacturing Services and Diversified Manufacturing Services. It offers electronics design, production, and product management services. The company provides electronic circuit design services, such as application-specific integrated circuit design, firmware development and rapid prototyping services; and designs plastic and metal enclosures that include the electro-mechanics, such as the printed circuit board assemblies (PCBA).

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