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John C. Plant, a director at Jabil Inc. (NYSE:JBL), recently sold a significant portion of his holdings in the company, according to a filing with the Securities and Exchange Commission. On January 24, Plant sold a total of 50,000 shares of Jabil common stock, generating approximately $8.6 million in proceeds. The shares were sold at prices ranging from $172.5 to $173.1 per share. The sale comes as Jabil, now valued at $17.3 billion, trades near its 52-week high of $174.8. According to InvestingPro analysis, the stock's RSI indicates overbought conditions, though the company maintains a healthy P/E ratio of 14.4x.
Prior to the sale, Plant acquired 1,300 restricted stock units on January 23, with each unit representing the right to receive one share of Jabil's common stock upon vesting. These units are scheduled to vest on January 23, 2026, under the terms of Jabil's 2021 Equity Incentive Plan.
Following these transactions, Plant retains ownership of 5,900 shares of Jabil common stock.
In other recent news, Jabil Inc. reported a significant increase in earnings and revenue for the first quarter of fiscal 2025. The electronics manufacturing services provider posted adjusted earnings per share of $2.00 and revenue of $7 billion, surpassing analyst estimates. These figures represent a 3.4% year-on-year increase in revenue. In response to the strong results, Matthew Sheerin from Stifel raised Jabil's stock price target from $150 to $160, maintaining a Buy rating on the shares.
Jabil also announced the issuance of a warrant to Amazon.com (NASDAQ:AMZN), allowing the e-commerce giant to acquire up to 1.16 million shares in the company at an exercise price of $137.77 per share. This agreement is tied to Amazon's purchases of products and services from Jabil, reflecting the company's strategic business relationships.
Furthermore, Jabil filed a prospectus supplement for the resale of up to 1,158,539 shares of its common stock. The company clarified that it will not receive any proceeds from the sale of shares by the selling stockholder. This move is part of an automatic shelf registration statement previously filed by Jabil.
In light of these recent developments, Jabil raised its fiscal 2025 guidance. The company now expects full-year revenue of $27.3 billion and core earnings per share to $8.75, surpassing prior estimates. Despite challenges in the electric vehicles and renewables sectors, the company's robust cash flow generation was highlighted, with free cash flow reaching $226 million, marking a 31% year-over-year increase.
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