Super Micro Computer (NASDAQ:SMCI) Shares Gap Down – Here’s What Happened

Super Micro Computer, Inc. (NASDAQ:SMCI)’s stock price gapped down before the market opened on Thursday. The stock had previously closed at $30.43, but opened at $27.28. Super Micro Computer shares last traded at $27.88, with a volume of 16,261,945 shares traded.

Key Super Micro Computer News

These are some of the SMCI news items that stood out recently:

• Positive Sentiment: Supermicro said its H15 server portfolio, powered by AMD’s latest EPYC processors, is now shipping. The systems target AI, cloud and high-performance computing workloads and boast performance and bandwidth improvements, giving the company new products to pursue continued AI infrastructure demand. Article: Supermicro Now Shipping Next-Generation Servers
• Positive Sentiment: Zacks Research upgraded SMCI from “hold” to “strong buy,” adding a favorable analyst signal. Article: Zacks Research stock recommendations
• Neutral Sentiment: Supermicro scheduled appearances at four investor conferences in November and December; the announcement did not include new financial guidance. Article: Super Micro Computer Schedules Four Major Investor Conferences

Analyst Ratings Changes

SMCI has been the topic of a number of analyst reports. Sanford C. Bernstein set a $42.00 target price on shares of Super Micro Computer in a research note on Thursday, August 13th. Oppenheimer upgraded Super Micro Computer to an “outperform” rating in a research note on Wednesday, November 4th. The Goldman Sachs Group reissued a “sell” rating and issued a $34.00 target price (up from $30.00) on shares of Super Micro Computer in a report on Wednesday, August 12th. Barclays set a $39.00 target price on Super Micro Computer and gave the stock an “equal weight” rating in a report on Wednesday, August 12th. Finally, Zacks Research upgraded Super Micro Computer from a “hold” rating to a “strong-buy” rating in a research report on Tuesday. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, eleven have given a Hold rating and three have issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $41.29.

Super Micro Computer Trading Down 12.2%

The company has a market capitalization of $17.61 billion, a price-to-earnings ratio of 5.66, a P/E/G ratio of 0.31 and a beta of 2.17. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.66 and a current ratio of 3.02. The business’s 50-day simple moving average is $36.96 and its 200-day simple moving average is $32.61.

Super Micro Computer (NASDAQ:SMCI) last released its quarterly earnings data on Tuesday, November 3rd. The company reported $1.81 EPS for the quarter, beating analysts’ consensus estimates of $1.28 by $0.53. The business had revenue of $19.95 billion during the quarter, compared to the consensus estimate of $16.29 billion. Super Micro Computer had a return on equity of 38.97% and a net margin of 6.77%. The firm’s revenue was up 297.5% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.35 earnings per share. On average, research analysts expect that Super Micro Computer, Inc. will post 5.90 earnings per share for the current fiscal year.

Insider Buying and Selling at Super Micro Computer

In other Super Micro Computer news, 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 transaction of $4,502,000.00. Following the transaction, the chief executive officer owned 337,506 shares of the company’s stock, valued at $15,194,520.12. The trade was a 22.86% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Chiu-Chu Liang sold 100,000 shares of the company’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 sale, the director owned 337,506 shares in the company, valued at approximately $15,194,520.12. This represents a 22.86% 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. In the last quarter, 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

A number of institutional investors have recently made changes to their positions in the business. Quest 10 Wealth Builders Inc. boosted its holdings in shares of Super Micro Computer by 235.2% during the 3rd quarter. Quest 10 Wealth Builders Inc. now owns 600 shares of the company’s stock worth $25,000 after buying an additional 421 shares during the period. Edmond DE Rothschild Holding S.A. bought a new position in Super Micro Computer in the 3rd quarter valued at about $25,000. TOP Private Wealth LLC. bought a new position in Super Micro Computer in the 2nd quarter valued at about $42,000. Comprehensive Financial Planning Inc. PA acquired a new stake in Super Micro Computer during the second quarter worth approximately $43,000. Finally, Heritage Family Offices LLP acquired a new stake in Super Micro Computer during the third quarter worth approximately $43,000. 84.06% of the stock is owned by institutional investors and hedge funds.

About Super Micro Computer

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.