San Jose, CA – In a recent transaction on July 31, Eugene A. Delaney, a director at Sanmina Corp (NASDAQ:SANM), sold 8,688 shares of the company's common stock, garnering a total of $650,123. The shares were sold at a price of $74.83 each, as indicated by the latest SEC filings.
Sanmina Corp, known for its expertise in printed circuit boards manufacturing, has seen its shares being actively traded by insiders. Delaney's recent sale has brought his direct ownership in the company to 92,199 shares following the transaction.
This sale comes amidst a dynamic market where insider trading activities are closely watched by investors seeking insights into company performance and executive confidence. The precise nature of the transaction price suggests a well-calculated decision by Delaney, reflecting his assessment of the stock's current valuation.
Investors and market analysts often scrutinize such sales, as they may provide signals about the company's future prospects or an insider's view of the stock's potential performance. However, it is also common for executives to sell shares for personal financial management, unrelated to their outlook on the company's future.
Sanmina Corp has not immediately responded to requests for comments on the transaction. It remains to be seen how this insider sale will be interpreted by the market and whether it will have any significant impact on the company's stock price in the coming days.
In other recent news, Sanmina Corporation reported its Q3 fiscal 2024 earnings with a revenue of $1.84 billion. This figure matches the company's outlook and represents a slight sequential increase of 0.4%. The company's communications networks and cloud infrastructure segments experienced an 8.3% sequential growth, although this was slightly offset by 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, projecting revenues to range between $1.9 billion and $2 billion. The company also signals demand stabilization and improvement for fiscal 2025. Sanmina's solid balance sheet, strong cash flow, and focus on cash management and capital allocation position it for potential growth in the coming years.
Despite some declines in industrial and automotive sectors, Sanmina remains optimistic about future growth, driven by new programs and positive market trends. The company's strategic investments in high-growth sectors such as cloud infrastructure, defense, aerospace, and medical are expected to support this growth trajectory. As the company prepares for the fourth quarter, investors and stakeholders will be watching closely for signs of the anticipated stabilization and growth in fiscal 2025.
InvestingPro Insights
As investors digest the news of Eugene A. Delaney's stock sale, a deeper look at Sanmina Corp's financial health and market performance through InvestingPro's lens provides additional context. The company's management has been actively buying back shares, a sign of confidence in the company's value and future prospects. Additionally, Sanmina holds more cash than debt on its balance sheet, indicating a strong financial position that could weather market fluctuations and invest in growth opportunities.
InvestingPro Data reveals that Sanmina Corp has a market capitalization of approximately $4.03 billion, with a price-to-earnings (P/E) ratio of 17.94, reflecting investor sentiment about the company's earnings potential. Despite a revenue decline of 16.52% over the last twelve months as of Q3 2024, the company maintains a gross profit margin of 8.45%, which, while not robust, indicates its ability to retain a portion of sales as profit.
Investors tracking the stock's momentum will note that Sanmina's price is currently near its 52-week high, trading at 93.4% of this peak. The stock has also experienced a significant price uptick over the last six months, with a 25.49% total return, underscoring a strong recent performance. This trend aligns with the InvestingPro Tips that highlight Sanmina's strong return over the last month and three months, further reinforcing its positive trajectory in the short term.
For those considering a deeper dive into Sanmina's outlook, InvestingPro offers additional insights. There are 17 more InvestingPro Tips available, including analyst predictions and valuation multiples, which can be accessed to inform investment decisions.
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