Christopher S. Holland, a director at Jabil Inc. (NYSE:JBL), recently sold 3,600 shares of the company's common stock. The transaction, which took place on October 25, was executed at an average price of $125.23 per share, bringing the total sale value to approximately $450,813. Following this sale, Holland retains ownership of 15,000 shares. Jabil Inc. is a leading provider of manufacturing services, headquartered in St. Petersburg, Florida.
In other recent news, Jabil Inc. reported robust Q4 and fiscal year 2024 financial results, with revenues reaching $7 billion. The company completed a $2.5 billion share repurchase program and announced a new $1 billion buyback plan for fiscal year 2025. Jabil forecasts Q1 FY '25 revenues to be between $6.3 billion and $6.9 billion, with core earnings per share estimated at $1.65 to $2.05.
The company also made strategic moves with the acquisition of Mikros Technologies LLC to enhance its data center solutions and address thermal management needs in sectors like AI, energy storage, and electric vehicles. Jabil has restructured into three segments: Regulated Industries, Intelligent Infrastructure, and Connected Living & Digital Commerce. The company also divested its Mobility business for $2.2 billion, returning much of the proceeds to shareholders.
In collaboration with Axiado Corporation, Jabil announced the development of new server solutions to enhance security for cloud and data-center environments. The servers feature advanced AI-driven cybersecurity and offer a choice between AMD (NASDAQ:AMD) 5th Generation EPYC Zen5 and Intel (NASDAQ:INTC) Xeon 6 processors. Lastly, Jabil's board of directors approved amendments to the company's bylaws, effectively lowering the ownership threshold required for shareholders to call a special meeting. These are the recent developments.
InvestingPro Insights
In light of Christopher S. Holland's recent stock sale, it's worth examining some key financial metrics and insights about Jabil Inc. (NYSE:JBL) from InvestingPro. As of the latest data, Jabil boasts a market capitalization of $14.17 billion, reflecting its significant presence in the Electronic Equipment, Instruments & Components industry.
Jabil's P/E ratio stands at 11.03, suggesting the stock may be undervalued relative to its earnings. This is further supported by an InvestingPro Tip indicating that Jabil is trading at a low P/E ratio relative to its near-term earnings growth. Additionally, the company's revenue for the last twelve months as of Q4 2024 was $28.88 billion, although it experienced a revenue decline of 16.77% during this period.
Despite the recent insider sale, InvestingPro Tips highlight that management has been aggressively buying back shares, demonstrating confidence in the company's future prospects. Jabil also maintains a high shareholder yield, which could be attractive to investors looking for value in the current market environment.
It's noteworthy that Jabil has maintained dividend payments for 19 consecutive years, showcasing its commitment to returning value to shareholders. However, investors should be aware that the company's gross profit margins are weak, which could impact profitability in the long term.
For readers interested in a more comprehensive analysis, InvestingPro offers 14 additional tips on Jabil, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.