Super Micro Computer (NASDAQ:SMCI) Trading Down 9.7% – Time to Sell?

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI) traded down 9.7% on Wednesday . The company traded as low as $25.68 and last traded at $25.70. Approximately 39,938,072 shares traded hands during mid-day trading, a decline of 9% from the average daily volume of 43,978,859 shares. The stock had previously closed at $28.45.

Analyst Ratings Changes

Several analysts have recently commented on SMCI shares. Mizuho reduced their price objective on shares of Super Micro Computer from $44.00 to $34.00 and set a “neutral” rating for the company in a research report on Thursday, July 23rd. Wolfe Research initiated coverage on shares of Super Micro Computer in a report on Thursday, June 11th. They issued a “peer perform” rating for the company. JPMorgan Chase & Co. lifted their price target on shares of Super Micro Computer from $28.00 to $32.00 and gave the company a “neutral” rating in a research note on Wednesday, May 6th. Weiss Ratings reissued a “hold (c)” rating on shares of Super Micro Computer in a research report on Wednesday, June 24th. Finally, Rosenblatt Securities set a $45.00 target price on Super Micro Computer and gave the company a “buy” rating in a research report on Wednesday, July 22nd. Four investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus price target of $39.21.

Super Micro Computer Price Performance

The stock has a market capitalization of $15.46 billion, a P/E ratio of 13.60, a price-to-earnings-growth ratio of 0.35 and a beta of 1.94. The business’s 50 day simple moving average is $32.62 and its two-hundred day simple moving average is $30.51. The company has a quick ratio of 1.29, a current ratio of 2.66 and a debt-to-equity ratio of 0.88.

Super Micro Computer (NASDAQ:SMCI) last posted its earnings results on Tuesday, May 5th. The company reported $0.84 EPS for the quarter, topping the consensus estimate of $0.63 by $0.21. The company had revenue of $10.24 billion during the quarter, compared to the consensus estimate of $12.39 billion. Super Micro Computer had a net margin of 3.70% and a return on equity of 17.49%. The firm’s revenue for the quarter was up 122.7% on a year-over-year basis. During the same period in the previous year, the firm posted $0.31 earnings per share. Super Micro Computer has set its Q4 2026 guidance at 0.650-0.790 EPS. As a group, sell-side analysts forecast that Super Micro Computer, Inc. will post 2.1 earnings per share for the current fiscal year.

Institutional Trading of Super Micro Computer

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Trust Asset Management LLC purchased a new stake in shares of Super Micro Computer in the second quarter worth approximately $164,000. Tema ETFs LLC grew its holdings in Super Micro Computer by 10.5% during the second quarter. Tema ETFs LLC now owns 10,663 shares of the company’s stock worth $313,000 after buying an additional 1,015 shares in the last quarter. Redhawk Wealth Advisors Inc. bought a new stake in Super Micro Computer during the second quarter worth $253,000. Contravisory Investment Management Inc. purchased a new stake in Super Micro Computer in the 2nd quarter valued at $49,000. Finally, World Equity Group Inc. raised its position in Super Micro Computer by 21.3% in the 2nd quarter. World Equity Group Inc. now owns 11,977 shares of the company’s stock valued at $351,000 after buying an additional 2,100 shares during the last quarter. 84.06% of the stock is owned by institutional investors.

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.