Jabil Circuit Inc. (NYSE:JBL) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a report released on Wednesday. The brokerage presently has a $25.00 target price on the stock. Zacks Investment Research’s target price would indicate a potential upside of 14.05% from the company’s current price.
According to Zacks, “Jabil Circuit reported better-than-expected fourth quarter fiscal 2016 results with both the top and bottom lines beating expectations. However, a weak macroeconomic scenario resulted in a year-over- year decline on both counts. Nonetheless, the company’s DMS business performed better than guided owing to increased demand from Apple in the quarter. Going ahead, opportunities in the healthcare and packaging business should drive top-line growth. The company recently initiated a restructuring program in order to optimize its use of resources. We expect this to be a growth driver in the long run. However, at present, stagnating sales are an overhang for Jabil. This apart, customer concentration, intensifying competition and increasing investments remain concerns.”
Several other research firms have also recently weighed in on JBL. Needham & Company LLC cut Jabil Circuit from a “buy” rating to a “hold” rating in a research report on Thursday, September 22nd. Bank of America Corp. restated a “buy” rating on shares of Jabil Circuit in a research note on Thursday, June 16th. B. Riley restated a “buy” rating and issued a $27.00 target price (up from $22.00) on shares of Jabil Circuit in a research note on Monday, September 19th. Citigroup Inc. boosted their target price on Jabil Circuit from $17.00 to $18.00 and gave the company a “neutral” rating in a research note on Thursday, September 22nd. Finally, Argus restated a “hold” rating on shares of Jabil Circuit in a research note on Thursday, June 16th. Nine research analysts have rated the stock with a hold rating, six have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. Jabil Circuit presently has a consensus rating of “Buy” and an average price target of $30.79.
Jabil Circuit (NYSE:JBL) traded up 0.73% during trading on Wednesday, hitting $22.08. The stock had a trading volume of 833,476 shares. Jabil Circuit has a 52 week low of $16.78 and a 52 week high of $26.00. The company has a 50-day moving average of $21.45 and a 200 day moving average of $19.49. The company has a market cap of $4.18 billion, a price-to-earnings ratio of 16.73 and a beta of 0.87.
Jabil Circuit (NYSE:JBL) last announced its earnings results on Wednesday, September 21st. The company reported $0.28 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $0.25 by $0.03. The company had revenue of $4.40 billion for the quarter. Jabil Circuit had a return on equity of 12.22% and a net margin of 1.38%. The firm’s quarterly revenue was down 6.0% on a year-over-year basis. During the same period in the previous year, the firm earned $0.53 EPS. On average, equities research analysts anticipate that Jabil Circuit will post $2.07 EPS for the current year.
The firm also recently declared a quarterly dividend, which was paid on Thursday, September 1st. Shareholders of record on Monday, August 15th were given a dividend of $0.08 per share. This represents a $0.32 dividend on an annualized basis and a yield of 1.46%. The ex-dividend date of this dividend was Thursday, August 11th. Jabil Circuit’s payout ratio is 24.24%.
In other Jabil Circuit news, CEO Michael J. Loparco sold 2,000 shares of the company’s stock in a transaction that occurred on Monday, September 19th. The stock was sold at an average price of $22.90, for a total transaction of $45,800.00. Following the completion of the transaction, the chief executive officer now owns 239,092 shares of the company’s stock, valued at approximately $5,475,206.80. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, President William E. Peters sold 20,000 shares of the company’s stock in a transaction that occurred on Tuesday, September 20th. The shares were sold at an average price of $23.25, for a total value of $465,000.00. The disclosure for this sale can be found here. Company insiders own 2.90% of the company’s stock.
A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Northwestern Mutual Investment Management Company LLC raised its position in Jabil Circuit by 0.4% in the second quarter. Northwestern Mutual Investment Management Company LLC now owns 33,007 shares of the company’s stock worth $610,000 after buying an additional 132 shares during the last quarter. Mason Street Advisors LLC purchased a new position in shares of Jabil Circuit during the second quarter valued at about $1,610,000. Calvert Investment Management Inc. purchased a new position in shares of Jabil Circuit during the second quarter valued at about $201,000. Walthausen & Co. LLC purchased a new position in shares of Jabil Circuit during the second quarter valued at about $6,436,000. Finally, Amalgamated Bank raised its position in shares of Jabil Circuit by 8.4% in the second quarter. Amalgamated Bank now owns 25,457 shares of the company’s stock valued at $532,000 after buying an additional 1,971 shares in the last quarter. 89.92% of the stock is owned by institutional investors and hedge funds.
About Jabil Circuit
Jabil Circuit, Inc provides electronic manufacturing services and solutions. The Company provides electronic design, production and product management services to companies in the aerospace, automotive, computing, defense, digital home, energy, healthcare, industrial, instrumentation, lifestyles, mobility, mold, networking, packaging, peripherals, storage, telecommunications and wearable technology industries.
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