Sanmina (NASDAQ:SANM) Sets New 1-Year High on Better-Than-Expected Earnings

Key Points

• Sanmina Corporation shares hit a new 52-week high of $112.41 after reporting earnings of $1.53 per share, surpassing estimates of $1.42.
• Analysts have upgraded Sanmina's rating from "buy" to "strong-buy," and Bank of America increased its price target from $100 to $120.
• Institutional investors hold 92.71% of Sanmina’s stock, with significant new stakes acquired by firms such as Nuveen LLC and Norges Bank.

Shares of Sanmina Corporation (NASDAQ:SANM - Get Free Report) hit a new 52-week high during mid-day trading on Tuesday following a stronger than expected earnings report. The stock traded as high as $110.39 and last traded at $112.41, with a volume of 148760 shares changing hands. The stock had previously closed at $98.35.

The electronics maker reported $1.53 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.42 by $0.11. Sanmina had a net margin of 3.22% and a return on equity of 11.30%. The firm had revenue of $2.04 billion during the quarter, compared to analyst estimates of $1.98 billion. During the same quarter in the prior year, the firm posted $1.25 earnings per share. Sanmina's quarterly revenue was up 10.9% on a year-over-year basis.

Analyst Upgrades and Downgrades

A number of research firms have commented on SANM. Wall Street Zen raised shares of Sanmina from a "buy" rating to a "strong-buy" rating in a research report on Saturday, May 24th. Bank of America increased their price target on shares of Sanmina from $100.00 to $120.00 and gave the stock a "neutral" rating in a research report on Friday, July 11th.

Institutional Trading of Sanmina

Several hedge funds have recently made changes to their positions in SANM. Summit Investment Advisors Inc. raised its holdings in Sanmina by 2.2% in the fourth quarter. Summit Investment Advisors Inc. now owns 5,620 shares of the electronics maker's stock valued at $425,000 after acquiring an additional 121 shares in the last quarter. Moloney Securities Asset Management LLC raised its holdings in Sanmina by 3.9% in the second quarter. Moloney Securities Asset Management LLC now owns 3,668 shares of the electronics maker's stock valued at $359,000 after acquiring an additional 138 shares in the last quarter. XTX Topco Ltd raised its holdings in Sanmina by 1.2% in the first quarter. XTX Topco Ltd now owns 11,886 shares of the electronics maker's stock valued at $905,000 after acquiring an additional 140 shares in the last quarter. Mariner LLC raised its holdings in Sanmina by 3.5% in the fourth quarter. Mariner LLC now owns 4,510 shares of the electronics maker's stock valued at $341,000 after acquiring an additional 152 shares in the last quarter. Finally, Xponance Inc. raised its holdings in Sanmina by 3.4% in the first quarter. Xponance Inc. now owns 4,687 shares of the electronics maker's stock valued at $357,000 after acquiring an additional 152 shares in the last quarter. Institutional investors and hedge funds own 92.71% of the company's stock.

Sanmina Trading Down 4.4%

The company's fifty day moving average is $96.28 and its two-hundred day moving average is $85.80. The stock has a market cap of $5.91 billion, a price-to-earnings ratio of 23.76, a PEG ratio of 1.72 and a beta of 1.14. The company has a quick ratio of 1.22, a current ratio of 1.91 and a debt-to-equity ratio of 0.12.

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.