San Jose, California-based Sanmina Corp (NASDAQ:SANM), a leading manufacturer in the printed circuit boards industry, has seen a recent transaction from director Krish A. Prabhu. According to a newly filed report, Prabhu sold 4,803 shares of common stock on August 6, 2024, for a total value exceeding $323,000.
The transaction involved shares being sold at a weighted average price of $67.386, with individual sale prices ranging from $67.352 to $67.465 per share. Following the sale, Prabhu's ownership in the company stands at 19,166 shares of common stock.
Investors often watch insider transactions as they offer insights into the perspectives of those with intimate knowledge of the company. While the reasons behind Prabhu's decision to sell shares are not disclosed, the transaction details are now publicly accessible for regulatory purposes.
As per the company's report, full information regarding the number of shares sold at each separate price is available upon request by the Securities and Exchange Commission staff, the issuer, or a security holder of the issuer.
Sanmina Corp, incorporated in Delaware with fiscal year-end on September 28, is known for its role in the electronics manufacturing services industry, providing end-to-end design, manufacturing, and logistics solutions. The company, with its headquarters at 2700 North First Street, San Jose, CA, continues to be a key player in the tech sector.
This transaction comes at a time when the market is closely monitoring insider activities for signs of corporate confidence and strategic positioning. Sanmina's stock performance and future transactions by its insiders will likely remain under scrutiny by investors seeking to gauge the company's trajectory.
In other recent news, Sanmina Corporation, a prominent integrated manufacturing solutions company, reported its Q3 fiscal 2024 earnings with revenues reaching $1.84 billion. This figure aligns with the company's forecast and represents a minor sequential increase of 0.4%. The company saw growth in its communications networks and cloud infrastructure segments, though this was partially offset by declines in the industrial and automotive sectors.
Sanmina's non-GAAP gross margin was reported at 8.5%, with its non-GAAP operating margin at 5.3%, both slightly below expectations. However, the company anticipates revenue growth in the fourth quarter of fiscal 2024 and signals demand stabilization and improvement for fiscal 2025.
Sanmina's balance sheet remains robust, boasting $658 million in cash and no debt on its $800 million credit facility. The company's outlook for Q4 revenue is projected to be between $1.9 billion and $2 billion. These recent developments suggest Sanmina is positioning itself for profitable growth in the coming years, driven by new programs and positive market trends.
InvestingPro Insights
In light of the recent insider transaction involving Sanmina Corp (NASDAQ:SANM), it's valuable to consider the company's financial health and market performance. With a market capitalization of approximately $3.81 billion and a P/E ratio standing at 17.6, Sanmina appears to be maintaining a solid position within the industry. The P/E ratio has seen a slight adjustment in the last twelve months as of Q3 2024, coming down to 16.49, indicating a modest change in the company's valuation relative to its earnings.
However, it's important to note that Sanmina's revenue has experienced a decline of 16.52% over the last twelve months as of Q3 2024. This contraction is mirrored in the quarterly revenue growth for the same period, which also decreased by 16.57%. Despite these challenges, Sanmina has managed to maintain a gross profit margin of 8.45%, suggesting that the company is still able to control its cost of goods sold effectively.
From an investment perspective, two InvestingPro Tips stand out for Sanmina. The management's aggressive share buyback strategy signals confidence in the company's value proposition, and the fact that Sanmina holds more cash than debt on its balance sheet is reassuring for financial stability. Moreover, the company is recognized as a prominent player in the Electronic Equipment, Instruments & Components industry and is trading at a low revenue valuation multiple, which could be appealing for value investors.
For those interested in an in-depth analysis, there are additional InvestingPro Tips available, providing a comprehensive view of Sanmina's financials, market performance, and future prospects. Visit https://www.investing.com/pro/SANM for further insights into Sanmina's investment potential.
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