Super Micro Computer (NASDAQ:SMCI) Shares Down 3.3% on Insider Selling

Super Micro Computer, Inc. (NASDAQ:SMCI) shares fell 3.3% during trading on Wednesday after an insider sold shares in the company. The stock traded as low as $38.84 and last traded at $38.93. 30,490,829 shares were traded during trading, a decline of 32% from the average session volume of 44,817,840 shares. The stock had previously closed at $40.26.

Specifically, Director Chiu-Chu Liang sold 100,000 shares of the company’s stock in a transaction that occurred 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 transaction, the director directly owned 537,506 shares in the company, valued at approximately $19,989,848.14. This represents a 15.69% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through 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 stock in a transaction that occurred 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 transaction, the chief executive officer directly owned 537,506 shares of the company’s stock, valued at $19,989,848.14. The trade was a 15.69% decrease in their position. 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

SMCI has been the topic of a number of research analyst reports. Weiss Ratings reissued a “hold (c)” rating on shares of Super Micro Computer in a research report on Wednesday, June 24th. Zacks Research upgraded Super Micro Computer from a “hold” rating to a “strong-buy” rating in a research report on Thursday, August 20th. The Goldman Sachs Group reaffirmed a “sell” rating and issued a $34.00 price objective (up from $30.00) on shares of Super Micro Computer in a research note on Wednesday, August 12th. Stifel Nicolaus set a $42.00 price objective on Super Micro Computer in a report on Wednesday, August 12th. Finally, Sanford C. Bernstein set a $42.00 target price on Super Micro Computer in a research note on Thursday, August 13th. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, eleven have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $42.13.

Key Super Micro Computer News

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

• Positive Sentiment: Wall Street’s earnings expectations have risen sharply over the past month, reflecting renewed confidence in Super Micro’s AI-server demand and growth prospects. Wall Street Is Getting Much More Bullish on Supermicro
• Positive Sentiment: Analyst commentary continues to highlight SMCI’s record backlog, liquid-cooling technology, AI-driven growth and relatively low valuation. Several research articles identify the stock as undervalued with potential upside. Buy Super Micro Computer for Handsome Returns and Attractive Valuations
• Positive Sentiment: The broader AI-server sector has remained strong, while Super Micro’s latest quarterly results included an EPS beat and 93.2% year-over-year revenue growth, supporting the long-term AI infrastructure thesis.
• Neutral Sentiment: SMCI remains one of the market’s most-searched stocks, which may increase trading activity but does not independently change the company’s fundamentals. Investors Heavily Search Super Micro Computer
• Negative Sentiment: Investors are questioning whether the recent gross-margin improvement can last. Reports indicate management expects margin normalization, which could pressure future profitability and reduce the impact of the recent earnings beat. Supermicro’s Margin Improvement May Be Temporary
• Negative Sentiment: CEO Charles Liang and director Chiu-Chu Liang each sold 100,000 shares, reducing their individual holdings by 15.69%. The transactions were made under pre-arranged Rule 10b5-1 plans, which lessens but does not eliminate the negative signaling effect.
• Negative Sentiment: Heavy short interest reflects investor concerns about margins, cash flow and the capital required to fund rapid AI-infrastructure expansion. Short Sellers Are Betting Against AI Infrastructure Stocks

Super Micro Computer Price Performance

The stock’s fifty day moving average price is $32.09 and its two-hundred day moving average price is $31.37. The firm has a market capitalization of $25.58 billion, a price-to-earnings ratio of 12.17, a price-to-earnings-growth ratio of 0.75 and a beta of 2.00. The company has a current ratio of 3.87, a quick ratio of 2.07 and a debt-to-equity ratio of 0.65.

Super Micro Computer (NASDAQ:SMCI) last issued its earnings results on Tuesday, August 11th. The company reported $1.70 EPS for the quarter, topping analysts’ consensus estimates of $0.92 by $0.78. The firm had revenue of $11.12 billion during the quarter, compared to the consensus estimate of $11.60 billion. Super Micro Computer had a net margin of 5.71% and a return on equity of 27.83%. The company’s revenue was up 93.2% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.31 earnings per share. 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 4.04 EPS for the current year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the business. MCF Advisors LLC increased its holdings in shares of Super Micro Computer by 22.8% in the 2nd quarter. MCF Advisors LLC now owns 3,667 shares of the company’s stock valued at $108,000 after acquiring an additional 680 shares during the last quarter. National Pension Service lifted its stake in Super Micro Computer by 191.7% during the second quarter. National Pension Service now owns 99,868 shares of the company’s stock worth $2,929,000 after purchasing an additional 65,632 shares during the last quarter. NewEdge Advisors LLC lifted its stake in Super Micro Computer by 183.5% during the second quarter. NewEdge Advisors LLC now owns 158,321 shares of the company’s stock worth $4,644,000 after purchasing an additional 102,474 shares during the last quarter. Baird Financial Group Inc. acquired a new position in Super Micro Computer in the second quarter valued at approximately $292,000. Finally, Allworth Financial LP boosted its holdings in Super Micro Computer by 11.3% in the second quarter. Allworth Financial LP now owns 37,880 shares of the company’s stock valued at $1,111,000 after purchasing an additional 3,858 shares in the last quarter. 84.06% of the stock is owned by institutional investors and hedge funds.

Super Micro Computer Company Profile

Super Micro Computer, Inc (Supermicro) is a technology company that designs, develops and manufactures high-performance server, storage and networking solutions for enterprise, cloud, data center, high performance computing (HPC) and edge computing customers. The company’s product portfolio includes rackmount and blade servers, storage subsystems, motherboards, chassis, power supplies and networking components, with an emphasis on high-density, energy-efficient configurations and platforms optimized for GPU-accelerated workloads and artificial intelligence applications.

Headquartered in San Jose, California, Supermicro combines in-house engineering with a global manufacturing and distribution footprint to deliver configurable, application-specific systems.