Sanmina (NASDAQ:SANM) Shares Gap Up – Still a Buy?

Sanmina Co. (NASDAQ:SANM) 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.

Wall Street Analysts Forecast Growth

SANM has been the topic of several recent research reports. StockNews.com raised Sanmina from a “hold” rating to a “buy” rating in a research note on Thursday, November 21st. Craig Hallum lifted their target price on Sanmina from $62.00 to $69.00 and gave the company a “hold” rating in a research report on Tuesday, November 5th.

Sanmina Price Performance

The firm has a market cap of $4.39 billion, a price-to-earnings ratio of 20.84, a PEG ratio of 1.41 and a beta of 0.91. The company’s fifty day moving average is $79.08 and its 200 day moving average is $73.21. The company has a quick ratio of 1.25, a current ratio of 1.99 and a debt-to-equity ratio of 0.13.

Sanmina (NASDAQ:SANM) last announced its quarterly earnings data on Monday, November 4th. The electronics maker reported $1.43 earnings per share for the quarter, beating the consensus estimate of $1.36 by $0.07. Sanmina had a return on equity of 10.47% and a net margin of 2.94%. The company had revenue of $2.02 billion during the quarter, compared to analysts’ expectations of $1.96 billion. During the same quarter last year, the company earned $1.20 EPS. Sanmina’s revenue for the quarter was down 1.6% compared to the same quarter last year. On average, equities research analysts predict that Sanmina Co. will post 4.84 EPS for the current year.

Sanmina announced that its Board of Directors has initiated a share repurchase program 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 stock through open market purchases. Stock buyback programs are often an indication that the company’s leadership believes its stock is undervalued.

Hedge Funds Weigh In On Sanmina

Hedge funds and other institutional investors have recently made changes to their positions in the company. Citigroup Inc. lifted its stake in Sanmina by 64.6% in the 3rd quarter. Citigroup Inc. now owns 73,938 shares of the electronics maker’s stock valued at $5,061,000 after purchasing an additional 29,028 shares during the last quarter. Geode Capital Management LLC lifted its stake 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 worth $103,727,000 after buying an additional 35,622 shares during the last quarter. Barclays PLC raised its holdings in Sanmina by 296.3% in the 3rd quarter. Barclays PLC now owns 92,863 shares of the electronics maker’s stock valued at $6,358,000 after acquiring an additional 69,431 shares during the period. Dynamic Technology Lab Private Ltd acquired a new stake in Sanmina during the third quarter worth approximately $2,224,000. Finally, JPMorgan Chase & Co. boosted its holdings in shares of 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 acquiring an additional 366,653 shares during the period. 92.71% of the stock is owned by institutional investors.

Sanmina Company Profile

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.