Super Micro Computer (NASDAQ:SMCI) Stock Falls 2.3% on Analyst Downgrade

Super Micro Computer, Inc. (NASDAQ:SMCI)’s share price was down 2.3% during trading on Tuesday after Zacks Research downgraded the stock from a strong-buy rating to a hold rating. The stock traded as low as $38.49 and last traded at $39.07. 24,518,141 shares traded hands during trading, a decline of 44% from the average session volume of 43,669,445 shares. The stock had previously closed at $39.98.

A number of other equities research analysts have also weighed in on the company. Sanford C. Bernstein set a $42.00 price objective on Super Micro Computer in a research report on Thursday, August 13th. Needham & Company LLC reissued a “buy” rating and issued a $46.00 target price on shares of Super Micro Computer in a research note on Wednesday, August 12th. Citigroup reissued a “neutral” rating and set a $45.00 price target (up from $39.00) on shares of Super Micro Computer in a research report on Thursday, October 8th. Raymond James Financial reaffirmed an “outperform” rating and set a $48.00 price target on shares of Super Micro Computer in a report on Wednesday, August 12th. Finally, Barclays set a $39.00 target price on Super Micro Computer and gave the company an “equal weight” rating in a report on Wednesday, August 12th. Four investment analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Hold” and an average price target of $43.07.

Insider Transactions at Super Micro Computer

In other Super Micro Computer news, Director Chiu-Chu Liang sold 100,000 shares of the company’s stock in a transaction dated Wednesday, October 7th. The shares were sold at an average price of $45.02, for a total value of $4,502,000.00. Following the transaction, the director directly owned 337,506 shares in the company, valued at $15,194,520.12. This represents a 22.86% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at 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 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 directly owned 337,506 shares in the company, valued at $15,194,520.12. The trade was a 22.86% 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. Over the last 90 days, insiders sold 400,000 shares of company stock worth $16,442,000. Insiders own 16.10% of the company’s stock.

Key Super Micro Computer News

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

• Positive Sentiment: AI infrastructure demand remains a growth catalyst. Digi Power X is deploying Supermicro servers equipped with Nvidia’s latest Blackwell chips for its enterprise AI-computing platform, providing a customer example for Supermicro’s AI-server business. Digi Power X pairs owned power infrastructure with Supermicro GPUs to serve enterprise AI customers
• Positive Sentiment: Low valuation may attract bargain hunters. SMCI trades at roughly 10 times earnings, well below the S&P 500 median. Its latest quarter also showed strong year-over-year revenue growth and an earnings beat, although revenue fell short of expectations. Is SMCI Stock A Real Bargain?
• Neutral Sentiment: Mark Long was appointed chief financial officer effective immediately. Long, formerly Western Digital’s CFO, will report to CEO Charles Liang. The leadership change could strengthen financial oversight, but the abrupt transition has added uncertainty for investors. Super Micro appoints Mark Long as chief financial officer
• Negative Sentiment: AI-hardware stocks are facing sector-wide pressure. Barclays downgraded Dell and Hewlett Packard Enterprise to Hold, citing uncertainty over the timing of enterprise AI spending. The resulting retreat in server makers has pressured SMCI as well. Dell Falls 8%, Hewlett Packard Enterprise Drops 4% as Barclays Cuts Both to Hold
• Negative Sentiment: Analyst and insider signals have weakened sentiment. Zacks Research moved SMCI from Strong Buy to Hold, while reported insider selling contributed to additional selling pressure. Super Micro Computer Stock Falls on Insider Selling

Institutional Investors Weigh In On Super Micro Computer

Several institutional investors have recently bought and sold shares of SMCI. World Equity Group Inc. grew its stake in shares of Super Micro Computer by 3.8% in the 1st quarter. World Equity Group Inc. now owns 9,877 shares of the company’s stock valued at $225,000 after buying an additional 362 shares during the period. Commonwealth of Pennsylvania Public School Empls Retrmt SYS grew its position in Super Micro Computer by 0.5% in the 1st quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 117,205 shares of the company’s stock valued at $2,669,000 after acquiring an additional 564 shares in the last quarter. Focused Wealth Management Inc grew its holdings in shares of Super Micro Computer by 3.3% in the first quarter. Focused Wealth Management Inc now owns 21,245 shares of the company’s stock valued at $484,000 after purchasing an additional 677 shares in the last quarter. MCF Advisors LLC increased its position in shares of Super Micro Computer by 22.8% during the second quarter. MCF Advisors LLC now owns 3,667 shares of the company’s stock worth $108,000 after acquiring an additional 680 shares during the period. Finally, Redwood Wealth Management Group LLC raised its position in Super Micro Computer by 8.8% in the 1st quarter. Redwood Wealth Management Group LLC now owns 9,725 shares of the company’s stock valued at $221,000 after purchasing an additional 785 shares in the last quarter. 84.06% of the stock is currently owned by institutional investors and hedge funds.

Super Micro Computer Trading Down 1.9%

The stock has a market cap of $23.05 billion, a price-to-earnings ratio of 10.97, a PEG ratio of 0.75 and a beta of 2.02. The company’s fifty day moving average is $38.71 and its two-hundred day moving average is $33.34. The company has a quick ratio of 2.07, a current ratio of 3.87 and a debt-to-equity ratio of 0.65.

Super Micro Computer (NASDAQ:SMCI) last announced its quarterly earnings results 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. Super Micro Computer had a return on equity of 27.83% and a net margin of 5.71%. The firm had revenue of $11.12 billion during the quarter, compared to the consensus estimate of $11.60 billion. During the same period in the prior year, the company posted $0.31 earnings per share. The firm’s quarterly revenue was up 93.2% compared to the same quarter last year. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS. On average, research analysts predict that Super Micro Computer, Inc. will post 3.94 EPS for the current fiscal year.

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.