McWILLIAMS ALAN REID, EVP at Sanmina (NASDAQ:SANM), disclosed an insider sell on May 16, according to a recent SEC filing.
What Happened: According to a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday, REID sold 6,000 shares of Sanmina. The total transaction value is $394,903.
As of Friday morning, Sanmina shares are down by 0.0%, currently priced at $65.76.
Discovering Sanmina: A Closer Look
Sanmina Corp is a provider of integrated manufacturing solutions, components, and after-market services to original equipment manufacturers in the communications networks, storage, industrial, defense and aerospace end markets. The company operates in two business segments: Integrated Manufacturing Solutions, which consists of printed circuit board assembly and represents a majority of the firm’s revenue; and Components, Products, and Services, which includes interconnect systems and mechanical systems. The firm generates revenue primarily in the United States, China, and Mexico, but has a presence around the world.
Sanmina: A Financial Overview
Negative Revenue Trend: Examining Sanmina’s financials over 3 months reveals challenges. As of 31 March, 2024, the company experienced a decline of approximately -20.93% in revenue growth, reflecting a decrease in top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Analyzing Profitability Metrics:
Gross Margin: The company faces challenges with a low gross margin of 8.44%, suggesting potential difficulties in cost control and profitability compared to its peers.
Earnings per Share (EPS): Sanmina’s EPS is below the industry average. The company faced challenges with a current EPS of 0.94. This suggests a potential decline in earnings.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.15.
Navigating Market Valuation:
Price to Earnings (P/E) Ratio: The P/E ratio of 15.58 is lower than the industry average, implying a discounted valuation for Sanmina’s stock.
Price to Sales (P/S) Ratio: The current P/S ratio of 0.48 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales…
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