Sanmina (NASDAQ:SANM) Shares Gap Down After Analyst Downgrade

Key Points

• Sanmina shares fell sharply, opening at $184.16 after previously closing at $208.90 and later trading near $167.14, following JPMorgan’s price-target cut from $275 to $260 and reiteration of a Neutral rating.
• The company reported strong fiscal third-quarter results, with EPS of $3.31 and revenue of $3.46 billion, both above estimates, driven by AI infrastructure demand, cloud growth and execution.
• Management raised fiscal 2026 EPS guidance to $11.90–$12.20, but the stock faces caution from its elevated valuation, a consensus analyst rating of Hold and significant recent insider selling.

Shares of Sanmina Corporation (NASDAQ:SANM - Get Free Report) gapped down prior to trading on Tuesday after JPMorgan Chase & Co. lowered their price target on the stock from $275.00 to $260.00. The stock had previously closed at $208.90, but opened at $184.16. JPMorgan Chase & Co. currently has a neutral rating on the stock. Sanmina shares last traded at $167.14, with a volume of 265,413 shares changing hands.

SANM has been the subject of a number of other research reports. Wall Street Zen downgraded Sanmina from a "strong-buy" rating to a "buy" rating in a research report on Saturday, July 18th. Zacks Research downgraded shares of Sanmina from a "strong-buy" rating to a "hold" rating in a research note on Monday, June 29th. Weiss Ratings upgraded shares of Sanmina from a "buy (b-)" rating to a "buy (b)" rating in a report on Wednesday, July 15th. Finally, Susquehanna initiated coverage on shares of Sanmina in a research report on Wednesday, April 1st. They issued a "neutral" rating and a $135.00 target price on the stock. Two equities research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $198.33.

Insider Transactions at Sanmina

In other news, EVP Alan Mcwilliams Reid sold 1,000 shares of the firm's stock in a transaction dated Friday, May 1st. The stock was sold at an average price of $218.17, for a total value of $218,170.00. Following the transaction, the executive vice president directly owned 31,481 shares in the company, valued at $6,868,209.77. This trade represents a 3.08% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CEO Jure Sola sold 118,368 shares of Sanmina stock in a transaction dated Wednesday, May 6th. The shares were sold at an average price of $228.84, for a total value of $27,087,333.12. Following the completion of the transaction, the chief executive officer directly owned 1,227,573 shares in the company, valued at $280,917,805.32. This represents a 8.79% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 156,509 shares of company stock valued at $35,699,476 in the last ninety days. Company insiders own 3.10% of the company's stock.

Key Headlines Impacting Sanmina

Here are the key news stories impacting Sanmina this week:

• Positive Sentiment: Sanmina reported fiscal Q3 EPS of $3.31, well above the $2.77 consensus estimate, while revenue of $3.46 billion exceeded expectations of $3.40 billion. Revenue increased 69.7% year over year, supported by AI infrastructure demand, cloud growth and strong execution. Sanmina Reports Third Quarter Fiscal 2026 Financial Results
• Positive Sentiment: Management raised its fiscal 2026 EPS outlook to $11.90-$12.20, above the $10.83 analyst consensus. Fourth-quarter EPS guidance of $3.05-$3.35 also topped the $2.81 consensus, reinforcing expectations for continued earnings momentum. SANM Q3 Earnings Beat Estimates on AI Demand, Strong Execution
• Positive Sentiment: The earnings call highlighted growth in AI infrastructure, new customer wins and the integration of ZT Systems, suggesting Sanmina is positioning for additional data-center and AI-related demand. Sanmina Q3 Earnings Call Signals AI Infrastructure Growth Strategy
• Neutral Sentiment: Full-year revenue guidance of $14.0-$14.3 billion was broadly in line with the $14.2 billion consensus, indicating that the raised profit outlook is being driven more by execution and mix than by a major revenue forecast increase.
• Negative Sentiment: JPMorgan lowered its Sanmina price target from $275 to $260 and maintained a Neutral rating. Although the revised target remains above the current trading level, the cautious stance may be weighing on sentiment after the earnings release. JPMorgan Sanmina Price Target Update
• Negative Sentiment: The sharp market reaction suggests investors may have expected an even stronger outlook or are locking in gains following Sanmina’s rapid appreciation. Its elevated earnings multiple increases the risk of a “sell-the-news” response despite the earnings beats.

Institutional Trading of Sanmina

Large investors have recently bought and sold shares of the company. Caitong International Asset Management Co. Ltd purchased a new position in Sanmina in the 3rd quarter valued at about $26,000. Employees Retirement System of Texas purchased a new position in Sanmina in the fourth quarter valued at about $39,000. Northwestern Mutual Wealth Management Co. grew its stake in Sanmina by 182.5% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 339 shares of the electronics maker's stock valued at $51,000 after purchasing an additional 219 shares in the last quarter. Steward Partners Investment Advisory LLC raised its position in shares of Sanmina by 235.5% in the 4th quarter. Steward Partners Investment Advisory LLC now owns 369 shares of the electronics maker's stock valued at $55,000 after purchasing an additional 259 shares in the last quarter. Finally, Kestra Advisory Services LLC purchased a new position in shares of Sanmina during the 4th quarter valued at approximately $60,000. Institutional investors and hedge funds own 92.71% of the company's stock.

Sanmina Price Performance

The company has a debt-to-equity ratio of 0.77, a current ratio of 1.71 and a quick ratio of 1.03. The firm has a market cap of $9.02 billion, a price-to-earnings ratio of 35.71, a P/E/G ratio of 0.80 and a beta of 1.56. The business's 50-day moving average price is $236.17 and its two-hundred day moving average price is $187.39.

Sanmina (NASDAQ:SANM - Get Free Report) last posted its quarterly earnings data on Monday, July 27th. The electronics maker reported $3.31 EPS for the quarter, beating analysts' consensus estimates of $2.77 by $0.54. The firm had revenue of $3.46 billion for the quarter, compared to the consensus estimate of $3.40 billion. Sanmina had a net margin of 2.29% and a return on equity of 16.23%. The firm's revenue was up 69.7% compared to the same quarter last year. During the same period in the prior year, the firm posted $1.53 EPS. Sanmina has set its Q4 2026 guidance at 3.050-3.350 EPS and its FY 2026 guidance at 11.900-12.200 EPS. On average, research analysts forecast that Sanmina Corporation will post 9.36 EPS for the current fiscal year.

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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