Sanmina (NASDAQ:SANM) Cut to Hold at Zacks Research

Key Points

• Zacks Research downgraded Sanmina from “strong buy” to “hold.” Other analysts have also tempered their views, resulting in a consensus “hold” rating and an average price target of $198.33.
• Sanmina reported stronger-than-expected quarterly results, with EPS of $3.31 versus the $2.77 consensus estimate and revenue of $3.46 billion, up 69.7% year over year.
• The stock opened at $222.73, while institutional investors own 92.71% of shares. Sanmina has a market capitalization of approximately $11.94 billion and trades at a P/E ratio of 39.84.

Sanmina (NASDAQ:SANM - Get Free Report) was downgraded by investment analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Monday, Zacks reports.

Several other research firms also recently issued reports on SANM. Weiss Ratings downgraded Sanmina from a "buy (b)" rating to a "buy (b-)" rating in a report on Friday, September 18th. JPMorgan Chase & Co. decreased their price target on shares of Sanmina from $275.00 to $260.00 and set a "neutral" rating on the stock in a research note on Tuesday, July 28th. Finally, Wall Street Zen raised Sanmina from a "buy" rating to a "strong-buy" rating in a report on Saturday, August 1st. Two investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Hold" and a consensus price target of $198.33.

Sanmina Price Performance

NASDAQ SANM opened at $222.73 on Monday. Sanmina has a twelve month low of $111.52 and a twelve month high of $288.68. The company has a debt-to-equity ratio of 0.71, a quick ratio of 1.06 and a current ratio of 1.78. The stock has a market capitalization of $11.94 billion, a PE ratio of 39.84, a P/E/G ratio of 0.75 and a beta of 1.60. The stock has a 50-day simple moving average of $201.36 and a 200 day simple moving average of $202.85.

Sanmina (NASDAQ:SANM - Get Free Report) last released its earnings results on Monday, July 27th. The electronics maker reported $3.31 EPS for the quarter, beating the consensus estimate of $2.77 by $0.54. Sanmina had a net margin of 2.41% and a return on equity of 19.08%. The firm had revenue of $3.46 billion during the quarter, compared to analysts' expectations of $3.40 billion. During the same period in the prior year, the company earned $1.53 EPS. The business's quarterly revenue was up 69.7% compared to the same quarter last year. Sanmina has set its Q4 2026 guidance at 3.050-3.350 EPS and its FY 2026 guidance at 11.900-12.200 EPS. Research analysts anticipate that Sanmina will post 10.73 EPS for the current year.

Institutional Trading of Sanmina

Several institutional investors have recently added to or reduced their stakes in the stock. RFG Advisory LLC bought a new position in Sanmina during the second quarter worth $1,218,000. Geode Capital Management LLC grew its holdings in Sanmina by 3.7% during the 4th quarter. Geode Capital Management LLC now owns 1,629,023 shares of the electronics maker's stock worth $244,500,000 after acquiring an additional 58,529 shares during the period. Bank of America Corp DE acquired a new stake in Sanmina during the 2nd quarter worth about $189,012,000. Vaughan Nelson Investment Management L.P. raised its position in shares of Sanmina by 57.5% in the 1st quarter. Vaughan Nelson Investment Management L.P. now owns 762,365 shares of the electronics maker's stock worth $98,833,000 after acquiring an additional 278,465 shares in the last quarter. Finally, Y Intercept Hong Kong Ltd lifted its stake in shares of Sanmina by 2,493.7% in the 1st quarter. Y Intercept Hong Kong Ltd now owns 36,805 shares of the electronics maker's stock valued at $4,771,000 after purchasing an additional 35,386 shares during the period. 92.71% of the stock is currently owned by institutional investors.

Sanmina Company Profile

Sanmina Corporation is an integrated manufacturing solutions provider serving original equipment manufacturers in industries including communications, cloud infrastructure, industrial, medical, defense and aerospace, automotive, and consumer products. The company supports customers across the product life cycle, from design and engineering through manufacturing, testing, supply chain management, logistics, repair, and aftermarket services.

Its capabilities include printed circuit board assembly, systems integration, enclosure and mechanical manufacturing, optical and semiconductor-related technologies, and the production of complete electronic and electromechanical systems.

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