Sanmina (NASDAQ:SANM) Shares Gap Down After Analyst Downgrade

Sanmina Corporation (NASDAQ:SANM) gapped down before the market opened on Tuesday after JPMorgan Chase & Co. lowered their price target on the stock from $275.00 to $260.00. The stock had previously closed at $208.90, but opened at $184.16. JPMorgan Chase & Co. currently has a neutral rating on the stock. Sanmina shares last traded at $167.14, with a volume of 265,413 shares trading hands.

Several other brokerages have also recently issued reports on SANM. Wall Street Zen cut Sanmina from a “strong-buy” rating to a “buy” rating in a research note on Saturday, July 18th. Zacks Research cut shares of Sanmina from a “strong-buy” rating to a “hold” rating in a report on Monday, June 29th. Susquehanna started coverage on shares of Sanmina in a research report on Wednesday, April 1st. They issued a “neutral” rating and a $135.00 price target on the stock. Finally, Weiss Ratings raised shares of Sanmina from a “buy (b-)” rating to a “buy (b)” rating in a report on Wednesday, July 15th. Two equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $198.33.

Insiders Place Their Bets

In related news, Director David V. Hedley III sold 500 shares of the company’s stock in a transaction on Friday, May 1st. The stock was sold at an average price of $219.52, for a total transaction of $109,760.00. Following the completion of the transaction, the director directly owned 7,376 shares in the company, valued at $1,619,179.52. This represents a 6.35% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Jonathan P. Faust sold 10,076 shares of the stock in a transaction on Friday, May 29th. The stock was sold at an average price of $265.80, for a total value of $2,678,200.80. Following the completion of the sale, the chief financial officer directly owned 77,000 shares in the company, valued at $20,466,600. This represents a 11.57% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 156,509 shares of company stock worth $35,699,476. 3.10% of the stock is currently owned by insiders.

Sanmina News Summary

Here are the key news stories impacting Sanmina this week:

• Positive Sentiment: Sanmina reported fiscal Q3 EPS of $3.31, well above the $2.77 consensus estimate, while revenue of $3.46 billion exceeded expectations of $3.40 billion. Revenue increased 69.7% year over year, supported by AI infrastructure demand, cloud growth and strong execution. Sanmina Reports Third Quarter Fiscal 2026 Financial Results
• Positive Sentiment: Management raised its fiscal 2026 EPS outlook to $11.90-$12.20, above the $10.83 analyst consensus. Fourth-quarter EPS guidance of $3.05-$3.35 also topped the $2.81 consensus, reinforcing expectations for continued earnings momentum. SANM Q3 Earnings Beat Estimates on AI Demand, Strong Execution
• Positive Sentiment: The earnings call highlighted growth in AI infrastructure, new customer wins and the integration of ZT Systems, suggesting Sanmina is positioning for additional data-center and AI-related demand. Sanmina Q3 Earnings Call Signals AI Infrastructure Growth Strategy
• Neutral Sentiment: Full-year revenue guidance of $14.0-$14.3 billion was broadly in line with the $14.2 billion consensus, indicating that the raised profit outlook is being driven more by execution and mix than by a major revenue forecast increase.
• Negative Sentiment: JPMorgan lowered its Sanmina price target from $275 to $260 and maintained a Neutral rating. Although the revised target remains above the current trading level, the cautious stance may be weighing on sentiment after the earnings release. JPMorgan Sanmina Price Target Update
• Negative Sentiment: The sharp market reaction suggests investors may have expected an even stronger outlook or are locking in gains following Sanmina’s rapid appreciation. Its elevated earnings multiple increases the risk of a “sell-the-news” response despite the earnings beats.

Institutional Trading of Sanmina

Several hedge funds have recently bought and sold shares of SANM. Caitong International Asset Management Co. Ltd acquired a new position in Sanmina during the 3rd quarter valued at about $26,000. Employees Retirement System of Texas bought a new stake in shares of Sanmina during the fourth quarter valued at approximately $39,000. CoreCap Advisors LLC bought a new stake in shares of Sanmina during the second quarter valued at approximately $76,000. Northwestern Mutual Wealth Management Co. boosted its position in shares of Sanmina by 182.5% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 339 shares of the electronics maker’s stock worth $51,000 after buying an additional 219 shares during the period. Finally, Steward Partners Investment Advisory LLC grew its holdings in Sanmina by 235.5% in the 4th quarter. Steward Partners Investment Advisory LLC now owns 369 shares of the electronics maker’s stock worth $55,000 after buying an additional 259 shares in the last quarter. 92.71% of the stock is currently owned by institutional investors.

Sanmina Trading Down 19.4%

The company has a current ratio of 1.71, a quick ratio of 1.03 and a debt-to-equity ratio of 0.77. The stock has a market capitalization of $9.02 billion, a price-to-earnings ratio of 35.71, a PEG ratio of 0.80 and a beta of 1.56. The firm has a 50-day moving average of $236.17 and a 200 day moving average of $187.39.

Sanmina (NASDAQ:SANM) last announced its quarterly earnings results on Monday, July 27th. The electronics maker reported $3.31 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.77 by $0.54. Sanmina had a return on equity of 16.23% and a net margin of 2.29%.The company had revenue of $3.46 billion during the quarter, compared to analyst estimates of $3.40 billion. During the same quarter in the previous year, the firm posted $1.53 EPS. The firm’s quarterly revenue was up 69.7% on a year-over-year basis. Sanmina has set its Q4 2026 guidance at 3.050-3.350 EPS and its FY 2026 guidance at 11.900-12.200 EPS. As a group, equities analysts predict that Sanmina Corporation will post 9.36 EPS for the current fiscal year.

About Sanmina

Sanmina Corporation is a leading global electronics manufacturing services (EMS) provider specializing in the design, production and end-to-end supply chain solutions for complex electronic products. Founded in 1980, the company has built a reputation for delivering high-reliability manufacturing across a wide range of industries, including communications, computing, aerospace and defense, medical, automotive and industrial sectors.

Sanmina’s core offerings encompass product design and engineering support, precision PCB fabrication and assembly, system integration, testing, and final system deployment.