Sanmina (NASDAQ:SANM) Shares Gap Up – What’s Next?

Sanmina Co. (NASDAQ:SANM) gapped up before the market opened on Tuesday . The stock had previously closed at $78.51, but opened at $82.00. Sanmina shares last traded at $79.67, with a volume of 107,644 shares changing hands.

Analysts Set New Price Targets

A number of brokerages recently issued reports on SANM. Craig Hallum increased their target price on Sanmina from $62.00 to $69.00 and gave the stock a “hold” rating in a report on Tuesday, November 5th. Bank of America raised shares of Sanmina from an “underperform” rating to a “neutral” rating and boosted their target price for the stock from $58.00 to $92.00 in a research report on Wednesday. Finally, StockNews.com raised shares of Sanmina from a “buy” rating to a “strong-buy” rating in a research report on Wednesday.

Sanmina Price Performance

The company has a current ratio of 1.99, a quick ratio of 1.25 and a debt-to-equity ratio of 0.13. The business has a 50-day moving average of $79.19 and a 200 day moving average of $73.34. The firm has a market capitalization of $4.47 billion, a PE ratio of 21.18, a price-to-earnings-growth ratio of 1.41 and a beta of 0.91.

Sanmina (NASDAQ:SANM) last released its quarterly earnings results on Monday, November 4th. The electronics maker reported $1.43 earnings per share for the quarter, topping the consensus estimate of $1.36 by $0.07. The business had revenue of $2.02 billion for the quarter, compared to analysts’ expectations of $1.96 billion. Sanmina had a net margin of 2.94% and a return on equity of 10.47%. The firm’s revenue for the quarter was down 1.6% compared to the same quarter last year. During the same period in the previous year, the company earned $1.20 earnings per share. As a group, research analysts anticipate that Sanmina Co. will post 4.84 EPS for the current fiscal year.

Sanmina declared that its Board of Directors has authorized a share buyback program on Monday, January 27th that authorizes the company to repurchase $300.00 million in outstanding shares. This repurchase authorization authorizes the electronics maker to purchase up to 7.1% of its shares through open market purchases. Shares repurchase programs are often a sign that the company’s board believes its shares are undervalued.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Wilmington Savings Fund Society FSB purchased a new stake in shares of Sanmina during the 3rd quarter worth approximately $32,000. Northwestern Mutual Wealth Management Co. increased its position in Sanmina by 24.1% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 845 shares of the electronics maker’s stock worth $56,000 after buying an additional 164 shares during the last quarter. R Squared Ltd bought a new stake in shares of Sanmina in the fourth quarter valued at $58,000. GAMMA Investing LLC lifted its position in shares of Sanmina by 88.5% during the 3rd quarter. GAMMA Investing LLC now owns 931 shares of the electronics maker’s stock valued at $64,000 after buying an additional 437 shares during the last quarter. Finally, CWM LLC grew its stake in shares of Sanmina by 40.5% during the 3rd quarter. CWM LLC now owns 1,781 shares of the electronics maker’s stock worth $122,000 after acquiring an additional 513 shares during the period. 92.71% of the stock is currently owned by hedge funds and other institutional investors.

About Sanmina

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.