On October 17, 2023, Michael Dastoor, the Executive Vice President and Chief Financial Officer of Jabil Inc (JBL, Financial), sold 4,289 shares of the company. This move is part of a trend for the insider, who over the past year has sold a total of 82,079 shares and purchased none.
Jabil Inc is a leading provider of electronic manufacturing services. The company offers electronics design, production, and product management services to companies in various industries and end markets. It operates in two segments: Electronics Manufacturing Services, which includes electronics circuitry, and Diversified Manufacturing Services, which includes final product assembly and direct order fulfillment.
The insider's recent sell comes at a time when there have been no insider buys over the past year, but 42 insider sells. This could be an indication of the insider's perception of the company's future prospects. However, it's important to note that insider selling does not necessarily imply a negative outlook. Insiders may sell shares for personal reasons or portfolio diversification.
On the day of the insider's recent sell, shares of Jabil Inc were trading for $137.77 apiece, giving the stock a market cap of $17.06 billion. The price-earnings ratio is 21.72, which is higher than the industry median of 20.92 and higher than the company’s historical median price-earnings ratio.
According to the GuruFocus Value, which is an intrinsic value estimate based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance, Jabil Inc is significantly overvalued. With a price of $137.77 and a GuruFocus Value of $77.87, the stock has a price-to-GF-Value ratio of 1.77.
In conclusion, the insider's recent sell of Jabil Inc shares, along with the company's valuation metrics, suggest that potential investors should exercise caution. While the company's business model and market position are strong, the lack of insider buys and the high price-to-GF-Value ratio may be cause for concern.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
