Jabil Stock Discussion

The recent sales of shares by the Executive Chairman at around the current price of US$129 is not a major concern but it's not a good sign either. The lack of insider purchases over the last year does not inspire confidence in the company, despite the fact that Jabil is profitable and growing its profits.

CEO of Jabil, Kenny Wilson, sees fiscal year 2024 as a transitional period due to the sale of the company's mobility business. Despite short-term revenue challenges, he is satisfied with the team's execution and the model's resilience.

The company's rising ROCE trend and profitable capital reinvestment are encouraging. Yet, the high ratio of current liabilities to total assets may present risks. The stock's strong performance over the past five years mirrors these trends.

Jabil's positive outlook appears to be factored into its current share price. The optimistic forecast and high beta suggest potential for future buying opportunities, warranting a closer look at factors like its balance sheet strength.

The significant insider selling at Jabil over the last three months, with no recorded purchases, raises caution. Despite high insider ownership, the history of share sales is concerning.