Investors Buy High Volume of Call Options on Sanmina (NASDAQ:SANM)

Key Points

• Investors bought an unusually large number of call options on Sanmina—9,262 calls on Friday, a 1,041% increase versus the average volume of 812 calls, indicating heavy bullish options activity.
• SANM shares jumped $11.56 to $191.58 after the company reported stronger-than-expected quarterly results (EPS $2.38 vs. $2.15; revenue up 59% YoY) and set Q2 guidance of $2.25–$2.55, yet analysts still carry a consensus Hold rating with an average target of $150.
• Insiders have been selling into the rally—CFO Jonathan P. Faust sold 10,075 shares and insiders disposed of 14,599 shares (~$2.29M) over the last 90 days, despite high institutional ownership.

Sanmina Corporation (NASDAQ:SANM - Get Free Report) saw unusually large options trading on Friday. Stock investors acquired 9,262 call options on the company. This is an increase of 1,041% compared to the average volume of 812 call options.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on SANM. JPMorgan Chase & Co. began coverage on Sanmina in a report on Monday, March 30th. They set a "neutral" rating and a $145.00 price target for the company. Zacks Research downgraded Sanmina from a "strong-buy" rating to a "hold" rating in a report on Monday, March 30th. Weiss Ratings downgraded Sanmina from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, April 1st. Argus upped their price target on Sanmina to $200.00 and gave the stock a "buy" rating in a report on Wednesday, January 28th. Finally, Susquehanna began coverage on Sanmina in a report on Wednesday, April 1st. They set a "neutral" rating and a $135.00 price target for the company. One equities research analyst has rated the stock with a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat.com, Sanmina has a consensus rating of "Hold" and an average target price of $150.00.

Sanmina Stock Performance

NASDAQ:SANM traded up $11.56 during trading on Friday, reaching $191.58. The company's stock had a trading volume of 614,809 shares, compared to its average volume of 776,470. The firm has a market cap of $10.46 billion, a price-to-earnings ratio of 45.74, a price-to-earnings-growth ratio of 0.78 and a beta of 1.05. The company has a debt-to-equity ratio of 0.75, a quick ratio of 1.04 and a current ratio of 1.70. The firm has a 50 day moving average of $142.16 and a 200-day moving average of $148.90. Sanmina has a 12 month low of $74.90 and a 12 month high of $192.86.

Sanmina (NASDAQ:SANM - Get Free Report) last announced its quarterly earnings data on Monday, January 26th. The electronics maker reported $2.38 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.15 by $0.23. The firm had revenue of $3.19 billion during the quarter, compared to the consensus estimate of $3.09 billion. Sanmina had a return on equity of 13.06% and a net margin of 2.47%.The business's revenue for the quarter was up 59.0% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.16 EPS. Sanmina has set its Q2 2026 guidance at 2.250-2.550 EPS. Research analysts expect that Sanmina will post 8.69 EPS for the current fiscal year.

Insider Transactions at Sanmina

In related news, CFO Jonathan P. Faust sold 10,075 shares of the company's stock in a transaction on Tuesday, February 24th. The stock was sold at an average price of $159.30, for a total transaction of $1,604,947.50. Following the completion of the sale, the chief financial officer owned 87,076 shares in the company, valued at approximately $13,871,206.80. This represents a 10.37% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Also, EVP Alan Mcwilliams Reid sold 3,500 shares of the company's stock in a transaction on Friday, February 13th. The stock was sold at an average price of $148.45, for a total value of $519,575.00. Following the sale, the executive vice president owned 33,981 shares of the company's stock, valued at $5,044,479.45. This trade represents a 9.34% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold 14,599 shares of company stock valued at $2,290,728 over the last ninety days. 3.10% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. AlphaQuest LLC lifted its position in shares of Sanmina by 10,472.1% during the 3rd quarter. AlphaQuest LLC now owns 10,995 shares of the electronics maker's stock valued at $1,266,000 after buying an additional 10,891 shares during the last quarter. Campbell & CO Investment Adviser LLC purchased a new position in shares of Sanmina during the 3rd quarter valued at $5,066,000. Vaughan Nelson Investment Management L.P. purchased a new position in shares of Sanmina during the 3rd quarter valued at $61,946,000. Allianz Asset Management GmbH lifted its position in shares of Sanmina by 3.7% during the 3rd quarter. Allianz Asset Management GmbH now owns 776,604 shares of the electronics maker's stock valued at $89,395,000 after buying an additional 27,384 shares during the last quarter. Finally, Asset Management One Co. Ltd. purchased a new position in shares of Sanmina during the 3rd quarter valued at $1,472,000. Institutional investors own 92.71% of the company's stock.

About Sanmina

Sanmina Corporation is a leading global electronics manufacturing services (EMS) provider specializing in the design, production and end-to-end supply chain solutions for complex electronic products. Founded in 1980, the company has built a reputation for delivering high-reliability manufacturing across a wide range of industries, including communications, computing, aerospace and defense, medical, automotive and industrial sectors.

Sanmina's core offerings encompass product design and engineering support, precision PCB fabrication and assembly, system integration, testing, and final system deployment.

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