We'd be surprised if Sanmina Corporation (NASDAQ:SANM) shareholders haven't noticed that the Lead Independent Director, Eugene Delaney, recently sold US$422k worth of stock at US$83.07 per share. On the bright side, that sale was only 5.6% of their holding, so we doubt it's very meaningful, on its own.
Sanmina Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Co-Founder, Jure Sola, for US$5.7m worth of shares, at about US$69.67 per share. That means that an insider was selling shares at slightly below the current price (US$83.38). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 6.1% of Jure Sola's holding.
Insiders in Sanmina didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Sanmina insiders own 3.0% of the company, worth about US$134m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Sanmina Insider Transactions Indicate?
Insiders sold Sanmina shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sanmina. You'd be interested to know, that we found 1 warning sign for Sanmina and we suggest you have a look.
But note: Sanmina may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
