Raymund Steven A, a director at Jabil Inc. (NYSE:JBL), has recently sold 20,000 shares of the company's common stock, according to a filing with the Securities and Exchange Commission. The sale, executed on October 24, was carried out at a weighted average price of $124.7048 per share, resulting in a total transaction value of approximately $2.49 million. Following this transaction, Steven A retains ownership of 139,108 shares in the company. The shares were sold in multiple trades, with prices ranging from $124.50 to $125.295.
In other recent news, Jabil Inc. reported robust financial results for the fourth quarter and fiscal year 2024, with Q4 revenues reaching $7 billion. The company also completed a $2.5 billion share repurchase program and announced a new $1 billion buyback plan for fiscal year 2025. Jabil 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 Inc. has 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. The company has reorganized into three segments: Regulated Industries, Intelligent Infrastructure, and Connected Living & Digital Commerce. It also divested its Mobility business for $2.2 billion, returning much of the proceeds to shareholders.
In collaboration with Axiado Corporation, Jabil Inc. has developed new server solutions aimed at enhancing security for cloud and data-center environments. The servers, conforming to Open Compute Project standards, feature advanced AI-driven cybersecurity and offer a choice between AMD (NASDAQ:AMD) 5th Generation EPYC Zen5 and Intel (NASDAQ:INTC) Xeon 6 processors.
Lastly, Jabil Inc. has approved amendments to the company's 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. This is part of a series of recent developments aimed at enhancing shareholder rights and improving corporate governance practices.
InvestingPro Insights
The recent insider sale by Raymund Steven A comes at a time when Jabil Inc. (NYSE:JBL) is showing mixed financial signals. According to InvestingPro data, Jabil's market capitalization stands at $14.17 billion, with a P/E ratio of 11.03, suggesting the stock may be undervalued relative to its earnings. This aligns with an InvestingPro Tip indicating that JBL is trading at a low P/E ratio relative to its near-term earnings growth.
Despite the director's sale, there are positive indicators for the company. InvestingPro Tips reveal that management has been aggressively buying back shares, which often signals confidence in the company's future prospects. Additionally, Jabil boasts a high shareholder yield, potentially making it an attractive option for value-focused investors.
However, investors should note that Jabil's revenue growth has been negative, with a -16.77% decline in the last twelve months as of Q4 2024. This contraction in revenue may explain why 5 analysts have revised their earnings downwards for the upcoming period, as highlighted by another InvestingPro Tip.
For those interested in a more comprehensive analysis, InvestingPro offers 14 additional tips for Jabil Inc., providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.