Super Micro Computer (NASDAQ:SMCI) Trading Down 8.4% – Should You Sell?

Super Micro Computer, Inc. (NASDAQ:SMCI) shares traded down 8.4% during mid-day trading on Monday . The stock traded as low as $36.38 and last traded at $36.74. Approximately 39,585,862 shares were traded during mid-day trading, a decline of 11% from the average session volume of 44,697,813 shares. The stock had previously closed at $40.10.

Analysts Set New Price Targets

A number of equities analysts recently commented on the company. Wedbush lifted their price target on Super Micro Computer from $34.00 to $40.00 and gave the stock a “neutral” rating in a research note on Wednesday, August 12th. Sanford C. Bernstein set a $42.00 price target on Super Micro Computer in a research report on Thursday, August 13th. Northland Securities set a $36.00 price objective on Super Micro Computer in a research note on Wednesday, July 22nd. Stifel Nicolaus set a $42.00 target price on shares of Super Micro Computer in a research note on Wednesday, August 12th. Finally, Bank of America restated an “underperform” rating on shares of Super Micro Computer in a research report on Wednesday, August 12th. One research 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. According to data from MarketBeat, the stock has an average rating of “Hold” and a consensus price target of $42.13.

Super Micro Computer Stock Down 3.0%

The firm has a market cap of $23.41 billion, a price-to-earnings ratio of 11.14, a price-to-earnings-growth ratio of 0.69 and a beta of 2.00. The stock has a 50-day moving average of $33.15 and a 200-day moving average of $31.58. 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 earnings per share for the quarter, topping the consensus estimate 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 for the quarter, compared to analyst estimates of $11.60 billion. During the same period last year, the company earned $0.31 earnings per share. The firm’s revenue for the quarter was up 93.2% on a year-over-year basis. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS. As a group, sell-side analysts forecast that Super Micro Computer, Inc. will post 4.04 EPS for the current fiscal year.

Insider Activity

In other Super Micro Computer news, CEO Charles Liang sold 100,000 shares of the company’s stock in a transaction dated 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 in the company, valued at approximately $19,989,848.14. This represents a 15.69% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at 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 dated 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 transaction, the director owned 537,506 shares of the company’s stock, valued at approximately $19,989,848.14. This trade represents a 15.69% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 16.10% of the company’s stock.

Hedge Funds Weigh In On Super Micro Computer

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

Super Micro Computer Company Profile

Super Micro Computer, Inc, doing business as Supermicro, develops and sells application-optimized server and storage systems. Its product portfolio includes servers, workstations, storage platforms, networking equipment, motherboards, chassis, power supplies and related software and support services.

The company also provides high-performance computing and data center infrastructure, including systems designed for artificial intelligence, machine learning, cloud computing, enterprise applications, telecommunications and edge computing.