Sanmina (NASDAQ:SANM) Shares Up 8% - Time to Buy?

Key Points

• Sanmina shares rose 8% on Thursday, although trading volume was 60% below its average.
• The company reported quarterly EPS of $4.43 versus analysts’ $3.27 estimate, while revenue of $3.86 billion beat the $3.48 billion forecast and rose 84% year over year.
• Analyst sentiment is mostly cautious: the consensus rating is Hold, with a $188.33 average price target. Sanmina provided fiscal 2027 EPS guidance of $15.50–$17.50.

Shares of Sanmina Corporation (NASDAQ:SANM - Get Free Report) rose 8% on Thursday. The stock traded as high as $167.28 and last traded at $172.0470. 353,610 shares changed hands during trading, a decline of 60% from the average daily volume of 885,675 shares. The stock had previously closed at $159.25.

Wall Street Analyst Weigh In

Several equities research analysts have recently weighed in on SANM shares. Wall Street Zen raised shares of Sanmina from a "buy" rating to a "strong-buy" rating in a research report on Sunday, October 11th. Zacks Research cut shares of Sanmina from a "strong-buy" rating to a "hold" rating in a research report on Monday, September 28th. Weiss Ratings downgraded Sanmina from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Tuesday. Finally, JPMorgan Chase & Co. lowered their price objective on Sanmina from $270.00 to $230.00 and set a "neutral" rating for the company in a report on Tuesday. One equities research analyst has rated the stock with a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $188.33.

Sanmina Price Performance

The stock has a market capitalization of $8.87 billion, a P/E ratio of 24.24, a PEG ratio of 0.43 and a beta of 1.72. The company has a 50 day moving average of $190.99 and a 200-day moving average of $190.34. The company has a quick ratio of 1.06, a current ratio of 1.62 and a debt-to-equity ratio of 0.69.

Sanmina (NASDAQ:SANM - Get Free Report) last issued its earnings results on Monday, November 9th. The electronics maker reported $4.43 earnings per share for the quarter, topping analysts' consensus estimates of $3.27 by $1.16. Sanmina had a net margin of 2.60% and a return on equity of 23.74%. The company had revenue of $3.86 billion for the quarter, compared to analysts' expectations of $3.48 billion. During the same period in the prior year, the company earned $1.67 earnings per share. The firm's revenue was up 84.0% compared to the same quarter last year. Sanmina has set its Q1 2027 guidance at 3.500-3.850 EPS and its FY 2027 guidance at 15.500-17.500 EPS. Sell-side analysts predict that Sanmina Corporation will post 13.20 EPS for the current year.

Institutional Investors Weigh In On Sanmina

A number of hedge funds have recently added to or reduced their stakes in SANM. First Trust Advisors LP raised its stake in Sanmina by 196.9% during the 3rd quarter. First Trust Advisors LP now owns 225,464 shares of the electronics maker's stock valued at $48,454,000 after acquiring an additional 149,520 shares in the last quarter. USS Investment Management Ltd lifted its holdings in shares of Sanmina by 43.5% in the third quarter. USS Investment Management Ltd now owns 3,300 shares of the electronics maker's stock valued at $709,000 after purchasing an additional 1,000 shares in the last quarter. Private Advisor Group LLC acquired a new position in Sanmina during the third quarter valued at $218,000. Ieq Capital LLC purchased a new stake in Sanmina in the 3rd quarter worth about $255,000. Finally, Focus Advisor Solutions LLC lifted its stake in Sanmina by 237.9% in the 3rd quarter. Focus Advisor Solutions LLC now owns 4,153 shares of the electronics maker's stock worth $892,000 after acquiring an additional 2,924 shares in the last quarter. 92.71% of the stock is currently owned by institutional investors.

Sanmina Company Profile

Sanmina Corporation is a provider of integrated manufacturing solutions for companies that develop complex electronic, optical, and electromechanical products. Its services span product design and engineering, supply-chain management, manufacturing, and logistics, as well as repair and other aftermarket support. The company serves customers in markets that include communications networks, cloud and data-center infrastructure, medical and life sciences, automotive, industrial equipment, and aerospace and defense.

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