Insider Selling: Csaba Sverha Unloads $3.11M Of Fabrinet Stock

Disclosed on August 26, Csaba Sverha, Chief Financial Officer at Fabrinet (NYSE:FN), executed a substantial insider sell as per the latest SEC filing.

What Happened: Sverha's decision to sell 10,000 shares of Fabrinet was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The total value of the sale is $3,106,788.

The latest update on Wednesday morning shows Fabrinet shares up by 0.41%, trading at $332.0.

All You Need to Know About Fabrinet

Fabrinet provides advance-level optical packaging and precision optical, electro-mechanical, and electronic manufacturing services to original equipment manufacturers of complex products, such as optical communication components, modules and sub-systems, industrial lasers, automotive components, medical devices, and sensors. The company offers a broad range of advance optical and electro-mechanical capabilities across the entire manufacturing process, including process design and engineering, supply chain management, manufacturing, complex printed circuit board assembly, advance-level of packaging, integration, final assembly, and testing. The company generates the majority of its revenue from North America and Asia-Pacific, with the rest from Europe.

Fabrinet's Financial Performance

Positive Revenue Trend: Examining Fabrinet's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 20.77% as of 30 June, 2025, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Holistic Profitability Examination:

• Gross Margin: With a low gross margin of 12.23%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Fabrinet's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 2.44.

Debt Management: Fabrinet's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.0.

Market Valuation:

• Price to Earnings (P/E) Ratio: Fabrinet's P/E ratio of 36.06 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: With a higher-than-average P/S ratio of 3.51, Fabrinet's stock is perceived as being overvalued in the market, particularly in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an impressive EV/EBITDA ratio of 26.64, Fabrinet demonstrates exemplary market valuation, surpassing industry averages.

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

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Understanding the Significance of Insider Transactions

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Breaking Down the Significance of Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Fabrinet's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.