Sanmina EVP sells over $585k in company stock
Sanmina Corp (NASDAQ:SANM), a leader in the printed circuit boards industry, has reported a recent sale of shares by EVP of Global Human Resources, Alan McWilliams Reid. On August 7, 2024, Reid sold a total of 8,500 shares of the company’s common stock, resulting in a transaction value exceeding $585,000.
The shares were sold in two separate transactions. In the first transaction, 6,500 shares were sold at a weighted average price of $69.008, with individual sales prices ranging from $69.000 to $69.025. The second transaction involved the sale of 2,000 shares at a fixed price of $68.350. Following these sales, Reid’s direct ownership in the company stands at 26,679 shares of common stock.
The reported sales occurred amid a market that closely observes insider activity for indications of a company’s financial health and management’s confidence in its future. Sanmina’s stock performance and the implications of such transactions are often of keen interest to investors and market analysts.
Investors and stakeholders in Sanmina Corp can access full details of the transactions upon request to the commission staff, the issuer, or the security holder of the issuer. The transactions were formally documented on August 8, 2024, as per the signature of Christopher K. Sadeghian, Attorney-in-Fact, on the ownership document.
In other recent news, Sanmina Corporation reported steady Q3 results with revenues hitting $1.84 billion, marking a slight 0.4% sequential increase. The company saw growth in the communications networks and cloud infrastructure segments, though there were declines in the industrial and automotive sectors. Sanmina’s non-GAAP gross margin was 8.5%, with the non-GAAP operating margin at 5.3%.
Looking ahead, Sanmina anticipates revenue growth in the fourth quarter of fiscal 2024, with projections between $1.9 billion and $2 billion. The company signals demand stabilization and improvement for fiscal 2025, backed by a strong balance sheet, solid cash flow, and a focus on cash management and capital allocation.
Despite declines in certain sectors, the company’s performance in communications networks and cloud infrastructure end markets remained strong. Sanmina’s inventory turns are currently at 4.9, with plans to improve to 6 turns and reduce days of inventory to the mid-60s. The company’s future expectations are driven by new programs and positive market trends, painting a cautiously optimistic picture for the quarters ahead.
InvestingPro Insights
Amidst the recent insider selling by EVP of Global Human Resources, Alan McWilliams Reid, Sanmina Corp (NASDAQ:SANM) presents a mixed financial landscape. According to InvestingPro Tips, management at Sanmina has been actively buying back shares, indicating a potential vote of confidence in the company’s value. Additionally, the company holds more cash than debt on its balance sheet, which may provide financial flexibility and resilience.
InvestingPro Data reveals a market capitalization of $3.81 billion and a price-to-earnings (P/E) ratio of 17.6, which adjusts to 16.49 when considering the last twelve months as of Q3 2024. The company’s revenue for the same period stands at $7.60 billion, though it has experienced a decline of 16.52% year-over-year. These figures could be crucial for investors weighing the company’s market position and future growth prospects.
While Reid’s sale of shares might raise questions among investors, the company’s strong cash position and share buybacks could be seen as stabilizing factors. For those interested in a deeper analysis, there are 13 additional InvestingPro Tips available at: https://www.investing.com/pro/SANM, which provide further insights into Sanmina’s financial health and market performance.
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