Sanmina (NASDAQ:SANM) Reaches New 52-Week High – Here’s Why

Sanmina Co. (NASDAQ:SANM) hit a new 52-week high during mid-day trading on Tuesday . The stock traded as high as $86.51 and last traded at $86.54, with a volume of 316161 shares traded. The stock had previously closed at $82.22.

Analysts Set New Price Targets

A number of research firms have recently commented on SANM. Craig Hallum upped their target price on Sanmina from $62.00 to $69.00 and gave the company a “hold” rating in a research note on Tuesday, November 5th. StockNews.com raised Sanmina from a “buy” rating to a “strong-buy” rating in a research report on Wednesday, January 29th. Finally, Bank of America upgraded Sanmina from an “underperform” rating to a “neutral” rating and lifted their target price for the stock from $58.00 to $92.00 in a research report on Wednesday, January 29th.

Sanmina Stock Performance

The firm has a 50 day moving average of $79.54 and a 200-day moving average of $73.65. The company has a market cap of $4.75 billion, a P/E ratio of 21.36, a PEG ratio of 1.22 and a beta of 0.92. The company has a quick ratio of 1.30, a current ratio of 2.06 and a debt-to-equity ratio of 0.12.

Sanmina (NASDAQ:SANM) last posted its quarterly earnings results on Monday, November 4th. The electronics maker reported $1.43 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.36 by $0.07. The business had revenue of $2.02 billion for the quarter, compared to the consensus estimate of $1.96 billion. Sanmina had a return on equity of 10.61% and a net margin of 2.99%. The business’s revenue was down 1.6% compared to the same quarter last year. During the same quarter in the prior year, the company earned $1.20 EPS. As a group, sell-side analysts anticipate that Sanmina Co. will post 5.15 EPS for the current fiscal year.

Sanmina announced that its Board of Directors has authorized a stock repurchase program on Monday, January 27th that allows the company to repurchase $300.00 million in shares. This repurchase authorization allows the electronics maker to buy up to 7.1% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s board believes its shares are undervalued.

Insider Activity

In other Sanmina news, Director Eugene A. Delaney sold 10,000 shares of the firm’s stock in a transaction that occurred on Thursday, January 30th. The shares were sold at an average price of $83.50, for a total value of $835,000.00. Following the completion of the sale, the director now directly owns 77,120 shares in the company, valued at $6,439,520. This trade represents a 11.48 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Insiders own 3.22% of the company’s stock.

Institutional Trading of Sanmina

A number of institutional investors have recently made changes to their positions in the business. Wilmington Savings Fund Society FSB purchased a new stake in Sanmina in the third quarter valued at about $32,000. Northwestern Mutual Wealth Management Co. boosted its stake in Sanmina by 24.1% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 845 shares of the electronics maker’s stock worth $56,000 after purchasing an additional 164 shares in the last quarter. R Squared Ltd acquired a new stake in Sanmina in the 4th quarter worth approximately $58,000. GAMMA Investing LLC grew its position in Sanmina by 88.5% during the 3rd quarter. GAMMA Investing LLC now owns 931 shares of the electronics maker’s stock worth $64,000 after purchasing an additional 437 shares during the last quarter. Finally, Principal Securities Inc. increased its stake in Sanmina by 13.6% during the 4th quarter. Principal Securities Inc. now owns 1,388 shares of the electronics maker’s stock valued at $105,000 after purchasing an additional 166 shares in the last quarter. Institutional investors and hedge funds own 92.71% of the company’s stock.

Sanmina Company Profile

Sanmina Corporation provides integrated manufacturing solutions, components, products and repair, logistics, and after-market services worldwide. It operates in two businesses, Integrated Manufacturing Solutions; and Components, Products and Services. The company offers product design and engineering, including concept development, detailed design, prototyping, validation, preproduction, manufacturing design release, and product industrialization; assembly and test services; direct order fulfillment and logistics services; after-market product service and support; and supply chain management services, as well as engages in the manufacturing of components, subassemblies, and complete systems.