Sanmina Director Sold $323K In Company Stock

KRISH PRABHU, Director at Sanmina SANM, disclosed an insider sell on August 8, according to a recent SEC filing.

What Happened: PRABHU's decision to sell 4,803 shares of Sanmina was revealed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The total value of the sale is $323,654.

Monitoring the market, Sanmina's shares down by 0.0% at $70.17 during Friday's morning.

Get to Know Sanmina Better

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.

A Deep Dive into Sanmina's Financials

Negative Revenue Trend: Examining Sanmina's financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -16.57% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Navigating Financial Profits:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 8.34%, indicating potential difficulties in maintaining profitability compared to its peers.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 0.93, Sanmina showcases strong earnings per share.

Debt Management: Sanmina's debt-to-equity ratio is below the industry average. With a ratio of 0.15, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Insights into Valuation Metrics:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 18.18 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 0.53, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Sanmina's EV/EBITDA ratio, lower than industry averages at 7.41, indicates attractively priced shares.

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

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Exploring the Significance of Insider Trading

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.

While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.

Exploring Key Transaction Codes

Delving into transactions, investors typically prioritize those unfolding in the open market, as precisely outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Sanmina's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.