Super Micro Computer (NASDAQ:SMCI) Stock Falls 3.9% – Should You Sell?

Super Micro Computer, Inc. (NASDAQ:SMCI)’s share price was down 3.9% during mid-day trading on Thursday. The stock traded as low as $34.12 and last traded at $34.43. Approximately 24,384,690 shares traded hands during trading, a decline of 44% from the average session volume of 43,330,012 shares. The stock had previously closed at $35.81.

Analyst Upgrades and Downgrades

SMCI has been the subject of several research analyst reports. Sanford C. Bernstein set a $42.00 price objective on shares of Super Micro Computer in a report on Thursday, August 13th. Raymond James Financial reaffirmed an “outperform” rating and issued a $48.00 target price on shares of Super Micro Computer in a research report on Wednesday, August 12th. Rosenblatt Securities reiterated a “buy” rating and issued a $51.00 price target on shares of Super Micro Computer in a research note on Friday, October 16th. Northland Securities set a $36.00 price target on shares of Super Micro Computer in a research report on Wednesday, July 22nd. Finally, Stifel Nicolaus set a $42.00 price objective on shares of Super Micro Computer in a research note on Wednesday, August 12th. Four research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average price target of $43.07.

Super Micro Computer Trading Down 3.9%

The company has a quick ratio of 2.07, a current ratio of 3.87 and a debt-to-equity ratio of 0.65. The stock has a fifty day simple moving average of $38.34 and a 200 day simple moving average of $32.64. The firm has a market capitalization of $22.62 billion, a P/E ratio of 10.76, a PEG ratio of 0.51 and a beta of 2.02.

Super Micro Computer (NASDAQ:SMCI) last issued its 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. The firm had revenue of $11.12 billion during the quarter, compared to analyst estimates of $11.60 billion. Super Micro Computer had a net margin of 5.71% and a return on equity of 27.83%. The business’s revenue was up 93.2% on a year-over-year basis. During the same period in the previous year, the firm earned $0.31 earnings per share. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS. As a group, research analysts forecast that Super Micro Computer, Inc. will post 4.17 EPS for the current year.

Insider Activity

In other Super Micro Computer news, Director Chiu-Chu Liang sold 100,000 shares of the company’s stock in a transaction dated Wednesday, October 7th. The shares were sold at an average price of $45.02, for a total value of $4,502,000.00. Following the transaction, the director directly owned 337,506 shares in the company, valued at $15,194,520.12. This represents a 22.86% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Liang sold 100,000 shares of the company’s stock in a transaction dated Wednesday, October 7th. The stock was sold at an average price of $45.02, for a total transaction of $4,502,000.00. Following the completion of the transaction, the chief executive officer owned 337,506 shares in the company, valued at $15,194,520.12. This represents a 22.86% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 400,000 shares of company stock valued at $16,442,000. 16.10% of the stock is owned by corporate insiders.

Institutional Trading of Super Micro Computer

Several large investors have recently made changes to their positions in SMCI. Quantinno Capital Management LP boosted its holdings in Super Micro Computer by 49.0% during the first quarter. Quantinno Capital Management LP now owns 155,225 shares of the company’s stock valued at $3,534,000 after acquiring an additional 51,049 shares during the period. Sei Investments Co. grew its position in shares of 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 purchasing an additional 82,820 shares during the last quarter. Renaissance Technologies LLC bought a new position in shares of Super Micro Computer in the first quarter worth about $1,353,000. Czech National Bank increased its stake in shares of Super Micro Computer by 16.9% in the second quarter. Czech National Bank now owns 160,189 shares of the company’s stock worth $4,698,000 after purchasing an additional 23,158 shares during the period. Finally, Militia Capital Management LLC bought a new position in shares of Super Micro Computer in the first quarter worth about $488,000. 84.06% of the stock is owned by hedge funds and other institutional investors.

Super Micro Computer Company Profile

Super Micro Computer, Inc develops and sells high-performance server and storage systems for data centers, cloud computing, enterprise IT, telecommunications, and other demanding computing environments. The company offers application-optimized servers, workstations, blade and rack systems, storage solutions, networking products, and related infrastructure.

Supermicro also provides systems designed for artificial intelligence, machine learning, accelerated computing, and other workloads that use graphics processing units and specialized processors.