Sanmina (NASDAQ:SANM) Upgraded by StockNews.com to Strong-Buy Rating

StockNews.com upgraded shares of Sanmina (NASDAQ:SANM) from a buy rating to a strong-buy rating in a research note released on Wednesday morning.

Several other analysts also recently weighed in on the stock. Craig Hallum lifted their price objective on shares of Sanmina from $62.00 to $69.00 and gave the company a “hold” rating in a research report on Tuesday, November 5th. Bank of America raised Sanmina from an “underperform” rating to a “neutral” rating and lifted their price target for the company from $58.00 to $92.00 in a report on Wednesday.

Sanmina Price Performance

SANM opened at $83.73 on Wednesday. The company has a quick ratio of 1.25, a current ratio of 2.06 and a debt-to-equity ratio of 0.12. The company’s 50-day moving average price is $79.39 and its 200 day moving average price is $73.49. Sanmina has a fifty-two week low of $57.28 and a fifty-two week high of $86.05. The firm has a market cap of $4.55 billion, a price-to-earnings ratio of 20.47, a price-to-earnings-growth ratio of 1.39 and a beta of 0.91.

Sanmina (NASDAQ:SANM) last announced its quarterly earnings results on Monday, November 4th. The electronics maker reported $1.43 earnings per share for the quarter, topping analysts’ consensus estimates of $1.36 by $0.07. Sanmina had a return on equity of 10.61% and a net margin of 2.99%. The business had revenue of $2.02 billion for the quarter, compared to analysts’ expectations of $1.96 billion. During the same period in the prior year, the firm earned $1.20 EPS. The business’s quarterly revenue was down 1.6% on a year-over-year basis. As a group, sell-side analysts expect that Sanmina will post 4.84 earnings per share for the current year.

Sanmina declared that its board has approved a stock buyback plan on Monday, January 27th that authorizes the company to buyback $300.00 million in outstanding shares. This buyback authorization authorizes the electronics maker to reacquire up to 7.1% of its shares through open market purchases. Shares buyback plans are generally an indication that the company’s management believes its shares are undervalued.

Insiders Place Their Bets

In other news, Director Eugene A. Delaney sold 10,000 shares of the stock in a transaction that occurred on Thursday, January 30th. The shares were sold at an average price of $83.50, for a total value of $835,000.00. Following the completion of the transaction, the director now directly owns 77,120 shares in the company, valued at $6,439,520. This trade represents a 11.48 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 3.09% of the stock is owned by insiders.

Hedge Funds Weigh In On Sanmina

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. FMR LLC raised its stake in shares of Sanmina by 5.0% in the 3rd quarter. FMR LLC now owns 1,715,767 shares of the electronics maker’s stock worth $117,444,000 after buying an additional 82,409 shares in the last quarter. Geode Capital Management LLC lifted its holdings in Sanmina by 2.4% in the 3rd quarter. Geode Capital Management LLC now owns 1,515,128 shares of the electronics maker’s stock valued at $103,727,000 after acquiring an additional 35,622 shares during the last quarter. Franklin Resources Inc. boosted its position in shares of Sanmina by 6.4% during the 3rd quarter. Franklin Resources Inc. now owns 1,319,768 shares of the electronics maker’s stock valued at $89,018,000 after purchasing an additional 79,565 shares in the last quarter. Global Alpha Capital Management Ltd. boosted its position in shares of Sanmina by 19.4% during the 3rd quarter. Global Alpha Capital Management Ltd. now owns 922,391 shares of the electronics maker’s stock valued at $63,138,000 after purchasing an additional 149,600 shares in the last quarter. Finally, JPMorgan Chase & Co. grew its stake in shares of Sanmina by 255.9% in the 3rd quarter. JPMorgan Chase & Co. now owns 509,906 shares of the electronics maker’s stock worth $34,903,000 after purchasing an additional 366,653 shares during the last quarter. 92.71% of the stock is owned by 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.