Sanmina Corporation (NASDAQ: SANM) stock jumped 0.98% on Wednesday to $52.44 against a previous-day closing price of $51.93. With 0.61 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.39 million shares. During the session, the Electronic Components company that operates in wider Technology sector, reached to the highest price of $53.06 whereas the lowest price it dropped to was $51.64. The 52-week range on SANM shows that it touched its highest point at $69.28 and its lowest point at $38.36 during that stretch. It currently has a 1-year price target of $77.00. Beta for the stock currently stands at 1.16.
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Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of SANM was up-trending over the past week, with a rise of 3.13%, but this was up by 1.55% over a month. Three-month performance dropped to -14.48% while six-month performance fell -20.53%. The stock gained 25.27% in the past year, while it has lost -8.47% so far this year. A look at the trailing 12-month EPS for SANM yields 5.24 with Next year EPS estimates of 6.75. For the next quarter, that number is 1.53. This implies an EPS growth rate of 1.20% for this year and 6.51% for next year. EPS is expected to decline by -15.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 18.00%.
Float and Shares Shorts:
At present, 58.13 million SANM shares are outstanding with a float of 55.95 million shares on hand for trading. On May 14, 2023, short shares totaled 2.18 million, which was 3.75% higher than short shares on Apr 13, 2023. In addition to Mr. Jure Sola as the firm’s Co-Founder, Exec. Chairman & CEO, Mr. Kurt Adzema serves as its Exec. VP & CFO.
Through their ownership of 94.51% of SANM’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 55.92% of SANM, in contrast to 5.06% held by mutual funds. Shares owned by individuals account for 37.80%. As the largest shareholder in SANM with 15.99% of the stake, BlackRock Fund Advisors holds 9,330,622 shares worth 9,330,622. A second-largest stockholder of SANM, The Vanguard Group, Inc., holds 6,683,304 shares, controlling over 11.45% of the firm’s shares. Dimensional Fund Advisors LP is the third largest shareholder in SANM, holding 4,730,560 shares or 8.11% stake. With a 7.25% stake in SANM, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 4,233,189 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.99% of SANM stock, is the second-largest Mutual Fund holder. It holds 1,743,160 shares valued at 91.1 million. DFA US Small Cap Value Portfolio holds 2.55% of the stake in SANM, owning 1,485,715 shares worth 77.64 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 31, 2023, SANM reported revenue of $2.02B and operating income of $98.61M. The EBITDA in the recently reported quarter was $118.44M and diluted EPS was $1.29.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SANM since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With SANM analysts setting a high price target of $78.00 and a low target of $76.00, the average target price over the next 12 months is $77.00. Based on these targets, SANM could surge 48.74% to reach the target high and rise by 44.93% to reach the target low. Reaching the average price target will result in a growth of 46.83% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Summary of Insider Activity:
Insiders traded SANM stock several times over the past three months with 8 Buys and 0 Sells. In these transactions, 22,816 shares were bought while 0 shares were sold. The number of buy transactions has increased to 18 while that of sell transactions has risen to 31 over the past year. The total number of shares bought during that period was 272,414 while 338,953 shares were sold.