Is Sanmina Corp (NASDAQ:SANM) a good investment?
In the financial world, there are dozens of indicators shareholders can use to monitor Mr. Market. A couple of the most useful are hedge fund and insider trading interest. At Insider Monkey, our research analyses have shown that, historically, those who follow the best picks of the elite fund managers can trounce their index-focused peers by a solid margin (see just how much).
Equally as key, positive insider trading activity is a second way to look at the financial markets. As the old adage goes: there are a number of motivations for an executive to downsize shares of his or her company, but only one, very obvious reason why they would behave bullishly. Many academic studies have demonstrated the valuable potential of this tactic if shareholders understand what to do (learn more here).
Thus, let’s discuss the recent info for Sanmina Corp (NASDAQ:SANM).
What does the smart money think about Sanmina Corp (NASDAQ:SANM)?
Heading into Q3, a total of 18 of the hedge funds we track were long in this stock, a change of -5% from the first quarter. With hedge funds’ sentiment swirling, there exists a few noteworthy hedge fund managers who were increasing their holdings meaningfully.
Out of the hedge funds we follow, Royce & Associates, managed by Chuck Royce, holds the biggest position in Sanmina Corp (NASDAQ:SANM). Royce & Associates has a $24.2 million position in the stock, comprising 0.1% of its 13F portfolio. On Royce & Associates’s heels is David Dreman of Dreman Value Management, with a $15.6 million position; the fund has 0.5% of its 13F portfolio invested in the stock. Remaining hedge funds with similar optimism include Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, Cliff Asness’s AQR Capital Management and Ken Grossman and Glen Schneider’s SG Capital Management.
Judging by the fact that Sanmina Corp (NASDAQ:SANM) has experienced declining interest from the top-tier hedge fund industry, logic holds that there was a specific group of fund managers who sold off their positions entirely last quarter. It’s worth mentioning that Ron Gutfleish’s Elm Ridge Capital dropped the biggest investment of the 450+ funds we key on, totaling an estimated $11.5 million in stock. Mike Vranos’s fund, Ellington, also cut its stock, about $0.4 million worth. These transactions are interesting, as total hedge fund interest fell by 1 funds last quarter.
How are insiders trading Sanmina Corp (NASDAQ:SANM)?
Legal insider trading, particularly when it’s bullish, is particularly usable when the company in focus has experienced transactions within the past six months. Over the last half-year time period, Sanmina Corp (NASDAQ:SANM) has experienced zero unique insiders buying, and zero insider sales (see the details of insider trades here).
We’ll go over the relationship between both of these indicators in other stocks similar to Sanmina Corp (NASDAQ:SANM). These stocks are Methode Electronics Inc. (NYSE:MEI), Power One Inc (NASDAQ:PWER), Nam Tai Electronics, Inc. (NYSE:NTE), Advanced Energy Industries, Inc. (NASDAQ:AEIS), and Encore Wire Corporation (NASDAQ:WIRE). This group of stocks belong to the diversified electronics industry and their market caps are similar to SANM’s market cap.