Super Micro Computer (NASDAQ:SMCI) Stock Falls 2.8% – Time to Sell?

Super Micro Computer, Inc. (NASDAQ:SMCI) shares dropped 2.8% during trading on Tuesday. The company traded as low as $27.13 and last traded at $27.79. Approximately 45,404,110 shares traded hands during trading, an increase of 4% from the average session volume of 43,651,523 shares. The stock had previously closed at $28.60.

Super Micro Computer News Summary

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

• Positive Sentiment: Super Micro raised its fiscal 2027 revenue outlook to $72 billion–$82 billion, and its CEO described the forecast as conservative. Article: Super Micro CEO Calls a $72 Billion to $82 Billion Outlook “Very, Very Conservative”
• Positive Sentiment: Zacks added SMCI to its Rank #1 (Strong Buy) lists for both stocks overall and value stocks. Separately, Northland raised its Q4 2028 EPS estimate to $1.64 from $1.56, a modestly favorable analyst signal. Article: New Strong Buy Stocks for November 10th
• Neutral Sentiment: Wall Street reportedly revised its view of SMCI, but the article excerpt does not provide specific price targets or the direction of those revisions. Article: Wall Street sets ORLC and SMCI price targets for next 12 months
• Negative Sentiment: A drop in NVIDIA shares is dragging AI-server makers lower, including Super Micro, as concerns around its key chip supplier spill across the hardware sector. Article: Super Micro Falls as NVIDIA’s Slide Drags AI Server Stocks
• Negative Sentiment: A Seeking Alpha analysis highlights substantial working-capital needs and negative cash flow—potential concerns even amid strong growth expectations. Article: Super Micro Q1 Earnings: Large Working Capital Requirements And Negative Cash Flow

Wall Street Analyst Weigh In

A number of research firms recently issued reports on SMCI. Mizuho upped their target price on Super Micro Computer from $35.00 to $43.00 and gave the company a “neutral” rating in a research note on Tuesday, October 6th. Needham & Company LLC reissued a “buy” rating and issued a $46.00 price target on shares of Super Micro Computer in a report on Wednesday, August 12th. Oppenheimer upgraded Super Micro Computer to an “outperform” rating in a research report on Wednesday, November 4th. Zacks Research downgraded Super Micro Computer from a “strong-buy” rating to a “hold” rating in a research report on Monday, October 12th. Finally, Wall Street Zen raised shares of Super Micro Computer from a “hold” rating to a “buy” rating in a research note on Saturday, October 31st. Four analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and three have assigned a Sell rating to the company. According to MarketBeat.com, Super Micro Computer presently has a consensus rating of “Hold” and an average target price of $41.29.

Super Micro Computer Trading Down 2.8%

The firm has a market capitalization of $18.26 billion, a price-to-earnings ratio of 5.93, a PEG ratio of 0.46 and a beta of 2.17. The company has a debt-to-equity ratio of 0.56, a current ratio of 3.02 and a quick ratio of 2.07. The business’s 50-day moving average price is $37.27 and its 200 day moving average price is $32.64.

Super Micro Computer (NASDAQ:SMCI) last announced its earnings results on Tuesday, November 3rd. The company reported $1.81 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.28 by $0.53. The company had revenue of $19.95 billion for the quarter, compared to analyst estimates of $16.29 billion. Super Micro Computer had a return on equity of 38.97% and a net margin of 6.77%. Super Micro Computer’s quarterly revenue was up 297.5% on a year-over-year basis. During the same period in the prior year, the company posted $0.35 EPS. On average, equities analysts forecast that Super Micro Computer, Inc. will post 4.31 earnings per share for the current fiscal year.

Insider Buying and Selling at Super Micro Computer

In other Super Micro Computer news, Director Chiu-Chu Liang sold 100,000 shares of Super Micro Computer stock in a transaction that occurred 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 director directly owned 337,506 shares in the company, valued at $15,194,520.12. The trade was a 22.86% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Scott Angel bought 1,715 shares of Super Micro Computer stock in a transaction on Friday, November 6th. The shares were purchased at an average cost of $29.12 per share, with a total value of $49,940.80. Following the completion of the purchase, the director directly owned 8,770 shares in the company, valued at $255,382.40. This trade represents a 24.31% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders sold a total of 400,000 shares of company stock worth $16,442,000 over the last ninety days. Company insiders own 16.10% of the company’s stock.

Institutional Investors Weigh In On Super Micro Computer

Hedge funds have recently modified their holdings of the stock. Quantinno Capital Management LP lifted its stake in Super Micro Computer by 49.0% in 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 last quarter. Sei Investments Co. raised its stake 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 in the last quarter. Renaissance Technologies LLC bought a new position in Super Micro Computer during the first quarter worth about $1,353,000. Czech National Bank boosted its stake in shares of Super Micro Computer by 16.9% in the 2nd quarter. Czech National Bank now owns 160,189 shares of the company’s stock valued at $4,698,000 after purchasing an additional 23,158 shares in the last quarter. Finally, Militia Capital Management LLC bought a new position in shares of Super Micro Computer in the first quarter valued at approximately $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. designs and sells server and storage systems, networking equipment, and related software and services. Its offerings include systems for data centers, cloud computing, enterprise applications, high-performance computing, artificial intelligence, and edge computing. The company emphasizes application-optimized solutions, including integrated rack-scale systems that combine computing, storage, networking, and management tools. It also provides system configuration, deployment, and support services.