Sanmina (NASDAQ:SANM) Reaches New 1-Year High – Still a Buy?

Sanmina Co. (NASDAQ:SANM) reached a new 52-week high during mid-day trading on Tuesday . The company traded as high as $86.51 and last traded at $86.54, with a volume of 316161 shares changing hands. The stock had previously closed at $82.22.

Analysts Set New Price Targets

Several equities research analysts have weighed in on the company. Craig Hallum increased their price target on Sanmina from $62.00 to $69.00 and gave the stock a “hold” rating in a research report on Tuesday, November 5th. StockNews.com upgraded Sanmina from a “buy” rating to a “strong-buy” rating in a research report on Wednesday, January 29th. Finally, Bank of America upgraded Sanmina from an “underperform” rating to a “neutral” rating and upped their price objective for the stock from $58.00 to $92.00 in a research report on Wednesday, January 29th.

Sanmina Price Performance

The stock has a market capitalization of $4.75 billion, a price-to-earnings ratio of 21.36, a PEG ratio of 1.22 and a beta of 0.92. The company has a current ratio of 2.06, a quick ratio of 1.30 and a debt-to-equity ratio of 0.12. The stock has a 50-day moving average price of $79.54 and a 200 day moving average price of $73.65.

Sanmina (NASDAQ:SANM) last released its quarterly earnings results on Monday, November 4th. The electronics maker reported $1.43 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.36 by $0.07. The firm had revenue of $2.02 billion for the quarter, compared to analysts’ expectations of $1.96 billion. Sanmina had a net margin of 2.99% and a return on equity of 10.61%. The firm’s revenue for the quarter was down 1.6% compared to the same quarter last year. During the same quarter last year, the company earned $1.20 EPS. As a group, equities research analysts expect that Sanmina Co. will post 5.15 earnings per share for the current year.

Sanmina announced that its board has approved a share repurchase program on Monday, January 27th that authorizes the company to buyback $300.00 million in shares. This buyback authorization authorizes the electronics maker to reacquire up to 7.1% of its shares through open market purchases. Shares buyback programs are usually a sign that the company’s leadership believes its shares are undervalued.

Insider Activity at Sanmina

In other news, Director Eugene A. Delaney sold 10,000 shares of the company’s stock in a transaction on Thursday, January 30th. The shares were sold at an average price of $83.50, for a total transaction of $835,000.00. Following the completion of the sale, the director now owns 77,120 shares of the company’s stock, valued at $6,439,520. This represents a 11.48 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. 3.22% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Sanmina

A number of large investors have recently made changes to their positions in SANM. Citigroup Inc. boosted its stake in Sanmina by 64.6% during the third quarter. Citigroup Inc. now owns 73,938 shares of the electronics maker’s stock worth $5,061,000 after buying an additional 29,028 shares during the last quarter. Geode Capital Management LLC boosted its position in shares of Sanmina by 2.4% during 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. Barclays PLC grew its holdings in shares of Sanmina by 296.3% in the third quarter. Barclays PLC now owns 92,863 shares of the electronics maker’s stock valued at $6,358,000 after purchasing an additional 69,431 shares during the period. Dynamic Technology Lab Private Ltd acquired a new stake in Sanmina during the third quarter worth about $2,224,000. Finally, JPMorgan Chase & Co. raised its stake in Sanmina by 255.9% during the third 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 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.