Super Micro Computer (NASDAQ:SMCI) Stock Falls 3.4% – Time to Sell?

Super Micro Computer, Inc. (NASDAQ:SMCI) was down 3.4% during mid-day trading on Monday. The stock traded as low as $40.96 and last traded at $41.78. 29,314,154 shares changed hands during mid-day trading, a decline of 34% from the average session volume of 44,439,156 shares. The stock had previously closed at $43.26.

Analysts Set New Price Targets

Several equities research analysts have weighed in on the company. Needham & Company LLC reaffirmed a “buy” rating and issued a $46.00 target price on shares of Super Micro Computer in a research report on Wednesday, August 12th. The Goldman Sachs Group restated a “sell” rating and set a $34.00 price target (up from $30.00) on shares of Super Micro Computer in a research report on Wednesday, August 12th. Zacks Research raised shares of Super Micro Computer from a “hold” rating to a “strong-buy” rating in a report on Thursday, August 20th. Barclays set a $39.00 target price on shares of Super Micro Computer and gave the company an “equal weight” rating in a research note on Wednesday, August 12th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Super Micro Computer in a report on Monday, September 21st. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, eleven have issued a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $42.13.

Super Micro Computer Trading Down 1.8%

The company has a market capitalization of $26.95 billion, a price-to-earnings ratio of 12.82, a price-to-earnings-growth ratio of 0.79 and a beta of 2.00. 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 business’s 50 day moving average price is $36.01 and its two-hundred day moving average price is $32.20.

Super Micro Computer (NASDAQ:SMCI) last posted its quarterly earnings data on Tuesday, August 11th. The company reported $1.70 EPS for the quarter, topping analysts’ consensus estimates of $0.92 by $0.78. The company had revenue of $11.12 billion for the quarter, compared to the consensus estimate of $11.60 billion. Super Micro Computer had a return on equity of 27.83% and a net margin of 5.71%.The company’s quarterly revenue was up 93.2% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.31 EPS. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS. Equities analysts forecast that Super Micro Computer, Inc. will post 4.04 earnings per share for the current fiscal year.

Insider Buying and Selling at Super Micro Computer

In other news, Director Chiu-Chu Liang sold 100,000 shares of the firm’s stock in a transaction on Thursday, September 3rd. The stock was sold at an average price of $37.19, for a total transaction of $3,719,000.00. Following the completion of the sale, the director directly owned 537,506 shares of the company’s stock, valued at $19,989,848.14. This trade represents a 15.69% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Liang sold 100,000 shares of the stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $37.19, for a total value of $3,719,000.00. Following the completion of the transaction, the chief executive officer owned 537,506 shares of the company’s stock, valued at $19,989,848.14. This trade represents a 15.69% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 16.10% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in SMCI. Norges Bank purchased a new stake in shares of Super Micro Computer during the fourth quarter worth $136,569,000. Dimensional Fund Advisors LP raised its holdings in shares of Super Micro Computer by 2.8% during the 1st quarter. Dimensional Fund Advisors LP now owns 4,082,780 shares of the company’s stock valued at $92,872,000 after purchasing an additional 111,388 shares in the last quarter. Assenagon Asset Management S.A. boosted its holdings in Super Micro Computer by 1,770.4% in the second quarter. Assenagon Asset Management S.A. now owns 2,174,863 shares of the company’s stock worth $63,789,000 after purchasing an additional 2,058,588 shares in the last quarter. Swiss National Bank raised its holdings in Super Micro Computer by 7.6% during the first quarter. Swiss National Bank now owns 1,576,800 shares of the company’s stock valued at $35,904,000 after buying an additional 111,100 shares in the last quarter. Finally, Hsbc Holdings PLC boosted its stake in shares of Super Micro Computer by 13.7% during the 4th quarter. Hsbc Holdings PLC now owns 1,134,891 shares of the company’s stock worth $33,203,000 after acquiring an additional 137,180 shares in the last quarter. 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 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.