Super Micro Computer (NASDAQ:SMCI) Stock Falls 4.5% Following Insider Selling

Super Micro Computer, Inc. (NASDAQ:SMCI)’s share price fell 4.5% on Monday following insider selling activity. The stock traded as low as $39.24 and last traded at $39.98. 25,344,849 shares were traded during mid-day trading, a decline of 42% from the average session volume of 43,766,750 shares. The stock had previously closed at $41.85.

Specifically, CEO Charles Liang sold 100,000 shares of the company’s stock in a transaction on Wednesday, October 7th. The stock was sold at an average price of $45.02, for a total value of $4,502,000.00. Following the completion of the transaction, the chief executive officer directly owned 337,506 shares in the company, valued at approximately $15,194,520.12. This represents a 22.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Chiu-Chu Liang sold 100,000 shares of the stock in a transaction dated Wednesday, October 7th. The stock was sold at an average price of $45.02, for a total value of $4,502,000.00. Following the transaction, the director owned 337,506 shares in the company, valued at $15,194,520.12. This trade represents a 22.86% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analysts Forecast Growth

Several analysts have commented on the company. Zacks Research upgraded Super Micro Computer from a “hold” rating to a “strong-buy” rating in a report on Thursday, August 20th. Wedbush upped their price objective on shares of Super Micro Computer from $34.00 to $40.00 and gave the company a “neutral” rating in a research note on Wednesday, August 12th. Rosenblatt Securities increased their price objective on shares of Super Micro Computer from $45.00 to $51.00 and gave the stock a “buy” rating in a report on Wednesday, August 12th. Citigroup reissued a “neutral” rating and issued a $45.00 target price (up from $39.00) on shares of Super Micro Computer in a research report on Thursday. Finally, Sanford C. Bernstein set a $42.00 target price on shares of Super Micro Computer in a research report on Thursday, August 13th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, eleven have given a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $43.07.

Super Micro Computer News Roundup

Here are the key news stories impacting Super Micro Computer this week:

• Positive Sentiment: Zacks upgraded Super Micro to Rank #1 (Strong Buy), citing improving earnings prospects. The upgrade could support the stock by increasing near-term investor optimism. Super Micro Upgraded to Strong Buy
• Neutral Sentiment: A contractor linked to Super Micro pleaded guilty in a case involving an alleged $2.5 billion illegal AI-chip export scheme. The reports do not indicate that Super Micro itself has been charged, but the connection may keep regulatory, compliance and reputational risks in focus. Super Micro Contractor Pleads Guilty in Chip Case
• Negative Sentiment: CEO Charles Liang sold 100,000 SMCI shares for approximately $4.5 million, while director Chiu-Chu Liang also sold 100,000 shares at an average price of $45.02. The transactions were conducted under a trading plan, which reduces their informational significance, but the sizable insider sales can nevertheless weigh on sentiment and reinforce recent selling pressure. CEO Insider Sale Director Insider Sale

Super Micro Computer Stock Down 4.5%

The company has a current ratio of 3.87, a quick ratio of 2.07 and a debt-to-equity ratio of 0.65. The firm has a market capitalization of $26.27 billion, a PE ratio of 12.49, a price-to-earnings-growth ratio of 0.81 and a beta of 2.02. The firm has a 50-day moving average of $38.23 and a two-hundred day moving average of $33.01.

Super Micro Computer (NASDAQ:SMCI) last posted its quarterly earnings results on Tuesday, August 11th. The company reported $1.70 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.92 by $0.78. Super Micro Computer had a return on equity of 27.83% and a net margin of 5.71%. The firm had revenue of $11.12 billion during the quarter, compared to the consensus estimate of $11.60 billion. During the same quarter in the previous year, the business earned $0.31 earnings per share. The firm’s quarterly revenue was up 93.2% compared to the same quarter last year. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS. On average, equities research analysts forecast that Super Micro Computer, Inc. will post 3.94 EPS for the current year.

Hedge Funds Weigh In On Super Micro Computer

Hedge funds and other institutional investors have recently modified their holdings of the company. Quantinno Capital Management LP increased its position in Super Micro Computer by 49.0% during the 1st quarter. Quantinno Capital Management LP now owns 155,225 shares of the company’s stock worth $3,534,000 after purchasing an additional 51,049 shares in the last quarter. Sei Investments Co. raised its holdings in Super Micro Computer by 134.8% in the first quarter. Sei Investments Co. now owns 144,238 shares of the company’s stock valued at $3,284,000 after buying an additional 82,820 shares during the period. Renaissance Technologies LLC purchased a new position in Super Micro Computer in the first quarter valued at approximately $1,353,000. Czech National Bank lifted its position in Super Micro Computer by 16.9% during the second quarter. Czech National Bank now owns 160,189 shares of the company’s stock valued at $4,698,000 after buying an additional 23,158 shares in the last quarter. Finally, OP Asset Management Ltd acquired a new position in Super Micro Computer during the first quarter valued at approximately $1,221,000. 84.06% of the stock is owned by institutional investors and hedge funds.

About Super Micro Computer

Super Micro Computer, Inc develops and sells application-optimized server and storage systems for data centers, cloud computing, enterprise IT, artificial intelligence, and other demanding computing environments. The company offers complete computing platforms as well as modular components, allowing customers to configure systems for specific performance, power, and workload requirements.

Its product portfolio includes server and storage systems, workstations, networking equipment, rack-scale solutions, GPU and AI systems, and related software and services.