Jabil (JBL) Cut to Sell at Zacks Investment Research

Jabil (NYSE:JBL) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Monday.

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.”

A number of other brokerages have also recently issued reports on JBL. Goldman Sachs Group cut Jabil from a “neutral” rating to a “sell” rating and lowered their target price for the stock from $28.00 to $26.00 in a report on Tuesday, October 10th. ValuEngine cut Jabil from a “strong-buy” rating to a “buy” rating in a report on Monday, December 4th. UBS Group reaffirmed a “buy” rating and issued a $35.00 target price on shares of Jabil in a report on Tuesday, October 17th. Argus raised Jabil from a “hold” rating to a “buy” rating and set a $36.00 target price for the company in a report on Monday, December 18th. Finally, Raymond James Financial reissued a “hold” rating on shares of Jabil in a research note on Thursday, December 14th. Three investment analysts have rated the stock with a sell rating, six have given a hold rating and six have issued a buy rating to the stock. The company has a consensus rating of “Hold” and a consensus price target of $32.27.

Jabil (NYSE JBL) traded down $0.34 during trading on Monday, hitting $24.94. The stock had a trading volume of 562,000 shares, compared to its average volume of 2,256,139. The company has a debt-to-equity ratio of 0.72, a current ratio of 0.95 and a quick ratio of 0.50. Jabil has a 12 month low of $24.11 and a 12 month high of $31.70. The firm has a market cap of $4,429.96, a PE ratio of 43.72, a P/E/G ratio of 1.02 and a beta of 0.53.

Jabil (NYSE:JBL) last posted its quarterly earnings results on Thursday, December 14th. The technology company reported $0.80 EPS for the quarter, topping analysts’ consensus estimates of $0.79 by $0.01. Jabil had a return on equity of 12.95% and a net margin of 0.54%. The company had revenue of $5.59 billion during the quarter, compared to analysts’ expectations of $5.50 billion. During the same quarter in the previous year, the firm earned $0.69 EPS. Jabil’s revenue was up 9.4% on a year-over-year basis. research analysts anticipate that Jabil will post 2.06 earnings per share for the current year.

In other news, CEO Mark T. Mondello sold 30,000 shares of the stock in a transaction that occurred 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 sale, the chief executive officer now directly owns 1,836,889 shares of the company’s stock, valued at $52,314,598.72. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, COO William D. Muir, Jr. sold 20,000 shares of the stock in a transaction that occurred on Tuesday, November 14th. The stock was sold at an average price of $28.41, for a total value of $568,200.00. Following the completion of the sale, the chief operating officer now directly owns 321,840 shares of the company’s stock, valued at $9,143,474.40. The disclosure for this sale can be found here. In the last quarter, insiders sold 75,915 shares of company stock worth $2,148,793. Corporate insiders own 2.60% of the company’s stock.

Several institutional investors and hedge funds have recently modified their holdings of the stock. IHT Wealth Management LLC increased its position in shares of Jabil by 142.6% during the second quarter. IHT Wealth Management LLC now owns 359 shares of the technology company’s stock valued at $159,000 after acquiring an additional 211 shares during the last quarter. Ameritas Investment Partners Inc. increased its position in shares of Jabil by 1.5% during the second quarter. Ameritas Investment Partners Inc. now owns 54,550 shares of the technology company’s stock valued at $1,592,000 after acquiring an additional 831 shares during the last quarter. PNC Financial Services Group Inc. increased 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 buying an additional 1,413 shares during the last quarter. Stifel Financial Corp increased 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 buying an additional 1,608 shares during the last quarter. Finally, Advisor Group Inc. increased 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 buying an additional 2,337 shares during the last quarter. 96.79% of the stock is owned by institutional investors.

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About Jabil

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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