Super Micro Computer (NASDAQ:SMCI) Stock Jumps 3.1% – Should You Buy?

Super Micro Computer, Inc. (NASDAQ:SMCI)’s share price shot up 3.1% during mid-day trading on Tuesday. The company traded as high as $32.28 and last traded at $31.39. 54,953,165 shares traded hands during mid-day trading, an increase of 27% from the average session volume of 43,284,281 shares. The stock had previously closed at $30.44.

Key Headlines Impacting Super Micro Computer

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

• Positive Sentiment: A rebound across AI-server makers is lifting the sector and providing support for SMCI ahead of earnings. Article: Super Micro Climbs Ahead of Earnings as AI Server Stocks Bounce
• Neutral Sentiment: SMCI is due to report fiscal Q1 results after the market close. Expectations call for substantial revenue and profit growth, but the results and management’s outlook will determine whether that optimism is justified. Options imply a potentially large post-report move, reflecting heightened uncertainty. Article: Super Micro Stock Faces Earnings Test as Options Signal 12.5% Move
• Negative Sentiment: Investors remain concerned that AI infrastructure spending could cool and that gross-margin pressure may blunt the benefit of strong sales growth. These issues could weigh on the market reaction even if earnings rise. Article: Super Micro Computer Q1 Earnings Preview
• Negative Sentiment: A report that the shares crossed below their 200-day moving average adds a technical headwind amid recent volatility. Article: Super Micro Stock Crosses Below 200-Day Moving Average

Wall Street Analyst Weigh In

SMCI has been the subject of a number of research reports. Barclays set a $39.00 price target on Super Micro Computer and gave the stock an “equal weight” rating in a research note on Wednesday, August 12th. Rosenblatt Securities reaffirmed a “buy” rating and set a $51.00 target price on shares of Super Micro Computer in a report on Friday, October 16th. Northland Securities set a $36.00 target price on Super Micro Computer in a report on Wednesday, July 22nd. Mizuho lifted their target price on Super Micro Computer from $35.00 to $43.00 and gave the stock a “neutral” rating in a research report on Tuesday, October 6th. Finally, Zacks Research downgraded Super Micro Computer from a “strong-buy” rating to a “hold” rating in a report on Monday, October 12th. Four equities research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $43.07.

Super Micro Computer Price Performance

The company’s fifty day moving average price is $38.10 and its 200 day moving average price is $32.69. The company has a debt-to-equity ratio of 0.65, a quick ratio of 2.07 and a current ratio of 3.87. The firm has a market capitalization of $20.62 billion, a price-to-earnings ratio of 9.81, a price-to-earnings-growth ratio of 0.56 and a beta of 2.02.

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

Insider Buying and Selling

In other news, Director Chiu-Chu Liang sold 100,000 shares of the business’s stock in a transaction that occurred on 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 director directly owned 337,506 shares in the company, valued at approximately $15,194,520.12. The trade was a 22.86% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Liang sold 100,000 shares of the business’s 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 transaction, the chief executive officer owned 337,506 shares of the company’s stock, valued at approximately $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. In the last ninety days, insiders have sold 400,000 shares of company stock worth $16,442,000. Corporate insiders own 16.10% of the company’s stock.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Assenagon Asset Management S.A. boosted its stake in shares of Super Micro Computer by 1,770.4% during the 2nd quarter. Assenagon Asset Management S.A. now owns 2,174,863 shares of the company’s stock worth $63,789,000 after acquiring an additional 2,058,588 shares in the last quarter. Ardmore Road Asset Management LP purchased a new stake in shares of Super Micro Computer during the first quarter valued at $11,954,000. Diversify Wealth Management LLC purchased a new position in Super Micro Computer in the 1st quarter worth about $7,455,000. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in Super Micro Computer in the 2nd quarter worth about $8,412,000. Finally, Annex Advisory Services LLC acquired a new stake in Super Micro Computer during the 3rd quarter worth about $10,282,000. Institutional investors and hedge funds own 84.06% of the company’s stock.

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.