Sanmina (NASDAQ:SANM) Shares Gap Up – Time to Buy?

Shares of 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 trading hands.

Wall Street Analysts Forecast Growth

Several analysts recently commented on SANM shares. StockNews.com raised Sanmina from a “hold” rating to a “buy” rating in a research note on Thursday, November 21st. Craig Hallum boosted their target price on shares of Sanmina from $62.00 to $69.00 and gave the company a “hold” rating in a research note on Tuesday, November 5th.

Sanmina Stock Up 3.6 %

The firm has a fifty day moving average price of $79.08 and a 200 day moving average price of $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. The company has a market cap of $4.39 billion, a P/E ratio of 20.84, a PEG ratio of 1.41 and a beta of 0.91.

Sanmina (NASDAQ:SANM) last issued 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 business had revenue of $2.02 billion for the quarter, compared to the consensus estimate of $1.96 billion. During the same quarter in the prior year, the company earned $1.20 EPS. The firm’s quarterly revenue was down 1.6% on a year-over-year basis. Equities research analysts forecast that Sanmina Co. will post 4.84 earnings per share for the current year.

Sanmina announced that its board has authorized a share repurchase program on Monday, January 27th that permits the company to buyback $300.00 million in shares. This buyback authorization permits the electronics maker to reacquire up to 7.1% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s leadership believes its stock is undervalued.

Hedge Funds Weigh In On Sanmina

Several hedge funds have recently added to or reduced their stakes in the company. FMR LLC raised its holdings in Sanmina by 5.0% during the 3rd 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 during the last quarter. Geode Capital Management LLC lifted its stake in shares of 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 purchasing an additional 35,622 shares during the period. Franklin Resources Inc. grew its stake in shares of 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 purchasing an additional 79,565 shares during the period. Global Alpha Capital Management Ltd. increased its holdings in Sanmina by 19.4% in the third 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 during the last quarter. Finally, JPMorgan Chase & Co. increased 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 valued at $34,903,000 after acquiring an additional 366,653 shares during the last quarter. Institutional investors own 92.71% of the company’s stock.

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.