Zacks Investment Research Downgrades Jabil (JBL) to Hold

Zacks Investment Research downgraded shares of Jabil (NYSE:JBL) from a strong-buy rating to a hold rating in a research note published on Tuesday.

According to Zacks, “Jabil’s top-line growth is benefiting from contract wins in the healthcare & packaging business. EMS segment is also a key growth driver. Moreover, the company is witnessing robust growth and better product placements, which is further expected to improve owing to strategic acquisitions. The restructuring program is also aiding the company to significantly cut back its expenses while maintaining its production capacities, thereby driving profitability. Estimates have remained stable ahead of the upcoming Q1 earnings release. However, sluggishness in mobility business, customer concentration and intensifying competition remain overhangs.”

JBL has been the topic of several other reports. BidaskClub cut shares of Jabil from a strong-buy rating to a buy rating in a research report on Thursday, August 3rd. J P Morgan Chase & Co assumed coverage on shares of Jabil in a research report on Wednesday, August 2nd. They set an overweight rating and a $40.00 price target on the stock. Goldman Sachs Group cut shares of Jabil from a neutral rating to a sell rating and cut their price target for the stock from $28.00 to $26.00 in a research report on Tuesday, October 10th. Citigroup reissued a sell rating and set a $28.00 price target on shares of Jabil in a research report on Thursday, September 28th. Finally, Needham & Company LLC reissued a buy rating and set a $37.00 price target on shares of Jabil in a research report on Wednesday, September 27th. Two equities research analysts have rated the stock with a sell rating, nine have given a hold rating and five have issued a buy rating to the company’s stock. Jabil has a consensus rating of Hold and an average target price of $30.50.

Shares of Jabil (JBL) opened at $28.58 on Tuesday. The company has a debt-to-equity ratio of 0.69, a quick ratio of 0.54 and a current ratio of 0.96. Jabil has a 52-week low of $20.43 and a 52-week high of $31.70. The company has a market cap of $5,096.15, a PE ratio of 15.51, a price-to-earnings-growth ratio of 1.08 and a beta of 0.55.

Jabil (NYSE:JBL) last issued its quarterly earnings results on Wednesday, September 27th. The technology company reported $0.64 EPS for the quarter, topping the consensus estimate of $0.61 by $0.03. Jabil had a net margin of 0.68% and a return on equity of 14.47%. The firm had revenue of $5.02 billion for the quarter, compared to analysts’ expectations of $4.86 billion. During the same period in the previous year, the firm posted $0.28 EPS. The company’s revenue for the quarter was up 13.4% on a year-over-year basis. sell-side analysts anticipate that Jabil will post 2.22 earnings per share for the current fiscal year.

The company also recently announced a quarterly dividend, which was paid on Friday, December 1st. Stockholders of record on Wednesday, November 15th were issued a $0.08 dividend. The ex-dividend date of this dividend was Tuesday, November 14th. This represents a $0.32 dividend on an annualized basis and a dividend yield of 1.12%. Jabil’s payout ratio is 46.38%.

In other news, President William E. Peters sold 3,580 shares of the company’s stock in a transaction dated Tuesday, October 17th. The shares were sold at an average price of $28.74, for a total value of $102,889.20. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO Mark T. Mondello sold 30,000 shares of the company’s stock in a transaction dated Monday, October 2nd. The shares were sold at an average price of $29.02, for a total transaction of $870,600.00. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 117,680 shares of company stock worth $3,349,846. 2.90% of the stock is owned by insiders.

Several hedge funds have recently modified their holdings of the company. IHT Wealth Management LLC raised its holdings in shares of Jabil by 142.6% in the 2nd quarter. IHT Wealth Management LLC now owns 359 shares of the technology company’s stock valued at $159,000 after purchasing an additional 211 shares during the period. Zurcher Kantonalbank Zurich Cantonalbank grew its stake in Jabil by 9.9% in the 2nd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 6,054 shares of the technology company’s stock valued at $177,000 after buying an additional 547 shares during the last quarter. Colonial Trust Advisors grew its stake in Jabil by 4.1% in the 2nd quarter. Colonial Trust Advisors now owns 15,400 shares of the technology company’s stock valued at $450,000 after buying an additional 600 shares during the last quarter. Ameritas Investment Partners Inc. grew its stake in Jabil by 1.5% in the 2nd quarter. Ameritas Investment Partners Inc. now owns 54,550 shares of the technology company’s stock valued at $1,592,000 after buying an additional 831 shares during the last quarter. Finally, Pegasus Partners Ltd. grew its stake in Jabil by 2.6% in the 2nd quarter. Pegasus Partners Ltd. now owns 33,571 shares of the technology company’s stock valued at $980,000 after buying an additional 852 shares during the last quarter. 95.08% of the stock is currently owned by institutional investors.

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Jabil Company Profile

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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