Sanmina (NASDAQ:SANM) Trading 7.1% Higher - Here's Why

Key Points

• Sanmina shares jumped 7.1% to $217.76, despite trading volume falling 85% below the average session volume.
• The rally followed strong quarterly results: earnings per share came in at $3.31 versus the $2.77 consensus estimate, while revenue rose 69.7% year over year to $3.46 billion.
• Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating, while institutional investors own 92.71% of the stock; however, JPMorgan lowered its price target to $260 from $275.

Sanmina Corporation (NASDAQ:SANM - Get Free Report) traded up 7.1% on Friday . The company traded as high as $216.97 and last traded at $217.76. 132,196 shares traded hands during trading, a decline of 85% from the average session volume of 898,252 shares. The stock had previously closed at $203.31.

Analyst Ratings Changes

Several research firms have issued reports on SANM. JPMorgan Chase & Co. cut their target price on Sanmina from $275.00 to $260.00 and set a "neutral" rating on the stock in a research note on Tuesday, July 28th. Wall Street Zen raised shares of Sanmina from a "buy" rating to a "strong-buy" rating in a research report on Saturday, August 1st. Weiss Ratings upgraded shares of Sanmina from a "buy (b-)" rating to a "buy (b)" rating in a report on Thursday, September 3rd. Finally, Zacks Research raised shares of Sanmina from a "hold" rating to a "strong-buy" rating in a research report on Thursday, July 30th. One equities research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $198.33.

Sanmina Stock Performance

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 cap of $11.64 billion, a PE ratio of 38.89, a price-to-earnings-growth ratio of 0.72 and a beta of 1.60. The firm has a fifty day moving average price of $200.88 and a 200 day moving average price of $196.52.

Sanmina (NASDAQ:SANM - Get Free Report) last announced its earnings results on Monday, July 27th. The electronics maker reported $3.31 earnings per share for the quarter, topping the consensus estimate of $2.77 by $0.54. Sanmina had a return on equity of 19.08% and a net margin of 2.41%.The firm had revenue of $3.46 billion for the quarter, compared to the consensus estimate of $3.40 billion. During the same period in the previous year, the business earned $1.53 EPS. The firm's revenue for the quarter was up 69.7% on a year-over-year basis. 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 forecast that Sanmina Corporation will post 10.41 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Sanmina

Several hedge funds and other institutional investors have recently modified their holdings of SANM. California State Teachers Retirement System lifted its stake in shares of Sanmina by 23,789.9% during the second quarter. California State Teachers Retirement System now owns 15,229,089 shares of the electronics maker's stock worth $3,854,178,000 after buying an additional 15,165,342 shares during the period. BlackRock Inc. acquired a new position in shares of Sanmina in the 2nd quarter valued at $1,390,702,000. Invesco Ltd. increased its position in shares of Sanmina by 74.6% in the 3rd quarter. Invesco Ltd. now owns 2,185,652 shares of the electronics maker's stock valued at $251,590,000 after acquiring an additional 933,974 shares during the period. Bank of America Corp DE purchased a new position in Sanmina in the 2nd quarter worth $189,012,000. Finally, Norges Bank purchased a new position in Sanmina in the 4th quarter worth $101,751,000. 92.71% of the stock is owned by hedge funds and other institutional investors.

About Sanmina

Sanmina Corporation NASDAQ: SANM is a global provider of integrated manufacturing, engineering and supply chain services for original equipment manufacturers. The company designs, builds and supports complex electronic and mechanical products, helping customers manage product development, production, logistics and aftermarket services.

Its capabilities include printed circuit board assembly, systems integration, electromechanical manufacturing, precision machining, enclosures, optical and radio-frequency components, testing, repair and product fulfillment.

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