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

Sanmina Co. (NASDAQ:SANM) shares gapped up prior to trading 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.

Analyst Upgrades and Downgrades

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

Sanmina Trading Up 2.2 %

The firm has a 50 day moving average price of $79.19 and a two-hundred day moving average price of $73.34. The company has a quick ratio of 1.25, a current ratio of 1.99 and a debt-to-equity ratio of 0.13. The company has a market cap of $4.47 billion, a price-to-earnings ratio of 21.18, a PEG 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 (EPS) for the quarter, topping the consensus estimate of $1.36 by $0.07. Sanmina had a net margin of 2.94% and a return on equity of 10.47%. The firm had revenue of $2.02 billion during the quarter, compared to analyst estimates of $1.96 billion. During the same quarter last year, the business earned $1.20 EPS. The company’s revenue was down 1.6% compared to the same quarter last year. As a group, equities analysts forecast that Sanmina Co. will post 4.84 earnings per share for the current year.

Sanmina declared that its board has authorized a stock buyback program on Monday, January 27th that allows the company to repurchase $300.00 million in shares. This repurchase authorization allows the electronics maker to purchase up to 7.1% of its shares through open market purchases. Shares repurchase programs are often an indication that the company’s management believes its stock is undervalued.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. FMR LLC increased its holdings in Sanmina by 5.0% in the third quarter. FMR LLC now owns 1,715,767 shares of the electronics maker’s stock worth $117,444,000 after purchasing an additional 82,409 shares in the last quarter. Geode Capital Management LLC lifted 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 period. Franklin Resources Inc. boosted its stake in Sanmina by 6.4% during the third quarter. Franklin Resources Inc. now owns 1,319,768 shares of the electronics maker’s stock worth $89,018,000 after acquiring an additional 79,565 shares in the last quarter. Global Alpha Capital Management Ltd. boosted its stake in Sanmina by 19.4% during the third quarter. Global Alpha Capital Management Ltd. now owns 922,391 shares of the electronics maker’s stock worth $63,138,000 after acquiring an additional 149,600 shares in the last quarter. Finally, JPMorgan Chase & Co. grew its holdings in Sanmina by 255.9% in 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 owned by institutional investors and hedge funds.

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.