This Insider Has Just Sold Shares In Sanmina

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. However, the silver lining is that the sale only reduced their total holding by 5.6%, so we're hesitant to read anything much into it, on its own.

See our latest analysis for Sanmina

The Last 12 Months Of Insider Transactions At Sanmina

In the last twelve months, the biggest single sale by an insider was when the Co-Founder, Jure Sola, sold US$5.7m worth of shares at a price of US$69.67 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 6.1% of Jure Sola's stake.

In the last year Sanmina insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Sanmina better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Sanmina

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Sanmina Insiders?

Insiders haven't bought Sanmina stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that Sanmina has 1 warning sign and it would be unwise to ignore it.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.