GuruFocus - On May 24, 2024, Frank Levinson, Director at Fabrinet (NYSE:FN), executed a sale of 6,000 shares of the company, according to the SEC Filing. Post (NYSE:POST) transaction, the insider now owns 5,709 shares of the company.
Fabrinet specializes in precision optical, electro-mechanical, and electronic manufacturing services, primarily serving industries such as communications, automotive, and medical devices.
The shares were sold at a price of $241.71, valuing the transaction at approximately $1,450,260. This sale contributes to a pattern observed over the past year, where Fabrinet insiders have made a total of 12 sales and no purchases. The insider, Frank Levinson, has not purchased any shares over the past year but has sold 6,000 shares in total.
As of the date of the sale, Fabrinet has a market cap of approximately $8.894 billion. The stock's price-earnings ratio stands at 32.68, which is above both the industry median of 23.74 and the company's historical median.
The current stock price compared to the GF Value suggests that Fabrinet is significantly overvalued. The GF Value, set at $151.56, indicates a price-to-GF-Value ratio of 1.59, reflecting the stock's overvaluation.
The GF Value is calculated considering historical trading multiples such as price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow, along with a GuruFocus adjustment factor based on past returns and growth, and future business performance estimates from Morningstar analysts.
This insider sale might interest investors tracking insider behaviors as an indicator of the company's future performance and valuation alignment.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
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