Sell Alert: Kristine Melachrino Cashes Out $1.40M In Jabil Stock

It was reported on October 28, that Kristine Melachrino, EVP at Jabil (NYSE:JBL) executed a significant insider sell, according to an SEC filing.

What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday, Melachrino sold 6,579 shares of Jabil. The total transaction value is $1,403,988.

The latest update on Wednesday morning shows Jabil shares up by 2.37%, trading at $219.6.

All You Need to Know About Jabil

Jabil Inc. is a U.S based company providing engineering, manufacturing, and supply chain solutions. It provides comprehensive electronics design, production, and product management services to companies in various industries and end markets. It operates through three segments: Regulated Industries, serving automotive, healthcare, and renewables; Intelligent Infrastructure, focused on AI, cloud, data centers, and communications, driving the majority of revenue; and Connected Living and Digital Commerce, specializing in digitalization and automation, such as robotics and warehouse automation. The company operates in the U.S., Mexico, China, Malaysia, Singapore, and several other markets.

Jabil: Financial Performance Dissected

Revenue Growth: Jabil's remarkable performance in 3 months is evident. As of 31 August, 2025, the company achieved an impressive revenue growth rate of 18.5%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.

Interpreting Earnings Metrics:

  • Gross Margin: With a low gross margin of 9.49%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

  • Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 2.03, Jabil showcases strong earnings per share.

Debt Management: Jabil's debt-to-equity ratio is notably higher than the industry average. With a ratio of 2.22, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

Market Valuation:

  • Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 36.24, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

  • Price to Sales (P/S) Ratio: The Price to Sales ratio is 0.8, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

  • EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a lower-than-industry-average EV/EBITDA ratio of 14.22, Jabil presents a potential value opportunity, as investors are paying less for each unit of EBITDA.

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

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Why Insider Transactions Are Key in Investment Decisions

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

Within the legal framework, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as per Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

The Insider's Guide to Important Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C indicates 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 Jabil's Insider Trades.

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

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