Jabil (JBL) Downgraded by Zacks Investment Research to Sell

Share on StockTwits

Zacks Investment Research cut shares of Jabil (NYSE:JBL) from a hold rating to a sell rating in a report published on Thursday morning, 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. Additionally, the Johnson & Johnson deal is a major growth driver for Jabil and is expected to expand its healthcare portfolio. During the second quarter, Jabil transitioned the first two sites from Johnson & Johnson Medical Devices Companies (JJMDC). Notably, its shares have outperformed the industry in the past year.”

Several other equities analysts have also recently commented on the stock. 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 research report on Monday, April 1st. TheStreet upgraded shares of Jabil from a c+ rating to a b rating in a research note on Monday, February 25th. Two analysts have rated the stock with a sell rating, four have given a hold rating, one has assigned a buy rating and one has assigned a strong buy rating to the company. The company has a consensus rating of Hold and an average price target of $29.17.

Shares of JBL stock opened at $26.17 on Thursday. The company has a current ratio of 1.02, a quick ratio of 0.60 and a debt-to-equity ratio of 1.34. Jabil has a one year low of $21.49 and a one year high of $31.50. The stock has a market cap of $4.23 billion, a PE ratio of 12.06, a P/E/G ratio of 1.00 and a beta of 0.65.

Jabil (NYSE:JBL) last issued its quarterly earnings results on Thursday, March 14th. The technology company reported $0.43 EPS for the quarter, missing the 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 in the previous year, the business posted $0.66 EPS. The business’s revenue for the quarter was up 13.3% on a year-over-year basis. As a group, analysts anticipate that Jabil will post 2.3 EPS for the current year.

The firm also recently disclosed a quarterly dividend, which will be paid on Monday, June 3rd. Investors of record on Wednesday, May 15th will be paid a dividend of $0.08 per share. The ex-dividend date is Tuesday, May 14th. This represents a $0.32 annualized dividend and a yield of 1.22%. Jabil’s dividend payout ratio (DPR) is 14.75%.

In related news, CEO Alessandro Parimbelli sold 17,000 shares of the stock in a transaction dated Monday, April 8th. The shares were sold at an average price of $29.22, for a total transaction of $496,740.00. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, CEO Steven D. Borges sold 10,000 shares of the stock in a transaction dated Wednesday, April 17th. The stock was sold at an average price of $31.00, for a total transaction of $310,000.00. Following the sale, the chief executive officer now owns 257,615 shares in the company, valued at approximately $7,986,065. The disclosure for this sale can be found here. In the last quarter, insiders have sold 46,388 shares of company stock worth $1,389,530. 2.90% of the stock is owned by company insiders.

Several large investors have recently made changes to their positions in JBL. James Investment Research Inc. acquired a new stake in shares of Jabil in the fourth quarter valued at approximately $1,133,000. Zurcher Kantonalbank Zurich Cantonalbank increased its stake in shares of Jabil by 8.1% in the fourth quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 10,338 shares of the technology company’s stock valued at $256,000 after purchasing an additional 773 shares during the period. Royal London Asset Management Ltd. increased its stake in shares of Jabil by 9.5% in the fourth quarter. Royal London Asset Management Ltd. now owns 167,984 shares of the technology company’s stock valued at $4,114,000 after purchasing an additional 14,511 shares during the period. Xact Kapitalforvaltning AB increased its stake in shares of Jabil by 3.9% in the fourth quarter. Xact Kapitalforvaltning AB now owns 24,048 shares of the technology company’s stock valued at $596,000 after purchasing an additional 900 shares during the period. Finally, Rhumbline Advisers increased its stake in shares of Jabil by 26.6% in the fourth quarter. Rhumbline Advisers now owns 391,549 shares of the technology company’s stock valued at $9,706,000 after purchasing an additional 82,303 shares during the period. Institutional investors own 89.81% of the company’s stock.

Jabil Company Profile

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).

Featured Article: What are catch-up contributions?

Get a free copy of the Zacks research report on Jabil (JBL)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Analyst Recommendations for Jabil (NYSE:JBL)

Receive News & Ratings for Jabil Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Jabil and related companies with MarketBeat.com's FREE daily email newsletter.