Why Is SANMINA CORP (SANM) Stock Down Today?

SANM stock fell 17.46% to $172.43 in a sharp intraday decline, despite the company reporting strong Q3 fiscal 2026 results and raising its guidance for both fiscal 2026 and 2027. The stock's move appears to reflect a broader market correction affecting the Nasdaq 100 and technology sector, as well as mixed investor sentiment toward the company's future performance amid recent insider sales and a lowered price target from JPMorgan.

What Happened

Sanmina reported Q3 fiscal 2026 results that exceeded expectations, including non-GAAP operating margin of 8.0% and adjusted earnings per share of $3.31, which beat the $2.77 estimate. The company raised its fiscal 2026 and 2027 guidance, with Q4 adjusted EPS guidance set at $3.05 to $3.35 and revenue expected to be between $3.3 billion and $3.6 billion. Despite these positive developments, the stock fell sharply in response to broader market conditions and investor skepticism.

JPMorgan cut its price target for Sanmina to $260, maintaining a neutral stance. Meanwhile, three executives sold a combined $4.2 million in shares over the past 90 days, including the CFO and an EVP for global HR. These sales, along with a recent correction in the Nasdaq 100 and the broader tech sector, may have contributed to the stock’s sharp decline.

What The Data Shows

The stock is currently trading within its 52-week range of $95.49 to $288.68, with a market capitalization of $11.2 billion and a P/E ratio of 44.2. Revenue has grown by 44.5% in the trailing twelve months, but net margin remains at 2.3%. The stock’s beta of 1.56 suggests it is more volatile than the broader market. Recent insider sales and a bearish price target from JPMorgan may be amplifying the stock’s downward momentum.

What To Watch

The stock is not scheduled to report earnings in the near term. Investors should monitor coverage breadth and any additional guidance from the company in the coming weeks, as well as broader market trends affecting the technology sector.