Frederic E. McCoy, Executive Vice President of Operations at Jabil Inc. (NYSE:JBL), recently sold 4,283 shares of the company's common stock. The shares were sold at an average price of $122.28, totaling approximately $523,739. Following this transaction, McCoy retains ownership of 142,472 shares in the company. The sale, executed on October 31, was conducted in multiple trades with prices ranging from $122.28 to $122.38.
In other recent news, Jabil Inc. has seen a flurry of activities. The company reported robust Q4 revenues for the fiscal year 2024, hitting the $7 billion mark. In addition, Jabil completed a $2.5 billion share repurchase program and announced a new $1 billion buyback plan for the fiscal year 2025. Looking ahead, the company projects Q1 FY '25 revenues to be between $6.3 billion and $6.9 billion, with core earnings per share estimated at $1.65 to $2.05.
Jabil has also made strategic moves, including the acquisition of Mikros Technologies LLC to enhance its data center solutions and address thermal management needs in sectors like AI, energy storage, and electric vehicles. Furthermore, Jabil has restructured into three segments: Regulated Industries, Intelligent Infrastructure, and Connected Living & Digital Commerce.
In collaboration with Axiado Corporation, Jabil has developed new server solutions designed to enhance security for cloud and data center environments. Lastly, Jabil has revised its bylaws, reducing the ownership threshold required for shareholders to call a special meeting from a majority to at least twenty-five percent of the voting power. These are the recent developments that have unfolded.
InvestingPro Insights
While Frederic E. McCoy's recent stock sale might raise eyebrows, it's essential to consider Jabil Inc.'s broader financial picture. According to InvestingPro data, Jabil boasts a market capitalization of $14.39 billion and trades at a P/E ratio of 11.27, suggesting the stock may be undervalued relative to its earnings potential.
InvestingPro Tips reveal that management has been aggressively buying back shares, indicating confidence in the company's future prospects. This strategy aligns with Jabil's high shareholder yield, potentially offsetting concerns about insider selling.
Despite a recent 16.77% decline in revenue, Jabil maintains a solid financial foundation with $28.88 billion in revenue over the last twelve months. The company's ability to generate profits is evident, with analysts predicting profitability for the current year.
It's worth noting that Jabil has maintained dividend payments for 19 consecutive years, demonstrating a commitment to shareholder returns. However, with a current dividend yield of only 0.26%, investors may be more focused on the company's growth potential and share buybacks.
For those seeking a deeper understanding of Jabil's financial health and market position, InvestingPro offers 12 additional tips, providing a comprehensive view of the company's strengths and challenges in the Electronic Equipment, Instruments & Components industry.
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