Super Micro Computer (NASDAQ:SMCI) Shares Down 3.4% – Should You Sell?

Super Micro Computer, Inc. (NASDAQ:SMCI)’s stock price fell 3.4% during mid-day trading on Monday. The stock traded as low as $40.96 and last traded at $41.78. 29,314,154 shares were traded during trading, a decline of 34% from the average daily volume of 44,439,156 shares. The stock had previously closed at $43.26.

Wall Street Analyst Weigh In

Several brokerages have recently weighed in on SMCI. Sanford C. Bernstein set a $42.00 price target on Super Micro Computer in a report on Thursday, August 13th. Barclays set a $39.00 price objective on Super Micro Computer and gave the company an “equal weight” rating in a research report on Wednesday, August 12th. Needham & Company LLC reiterated a “buy” rating and issued a $46.00 target price on shares of Super Micro Computer in a research note on Wednesday, August 12th. Northland Securities set a $36.00 target price on Super Micro Computer in a research report on Wednesday, July 22nd. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Super Micro Computer in a research note on Monday, September 21st. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, eleven have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $42.13.

Super Micro Computer Trading Down 3.4%

The stock’s 50-day moving average price is $35.34 and its 200 day moving average price is $32.07. The company has a debt-to-equity ratio of 0.65, a current ratio of 3.87 and a quick ratio of 2.07. The firm has a market capitalization of $27.45 billion, a PE ratio of 13.06, a price-to-earnings-growth ratio of 0.82 and a beta of 2.00.

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 analyst estimates of $11.60 billion. During the same quarter in the previous year, the business earned $0.31 earnings per share. Super Micro Computer’s quarterly revenue 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. On average, sell-side analysts expect that Super Micro Computer, Inc. will post 4.04 EPS for the current fiscal year.

Insiders Place Their Bets

In other Super Micro Computer news, CEO Charles Liang sold 100,000 shares of Super Micro Computer stock in a transaction 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 completion of the sale, 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. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 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 on Thursday, September 3rd. The stock was sold at an average price of $37.19, for a total value of $3,719,000.00. Following the completion of the sale, the director owned 537,506 shares of the company’s stock, valued at $19,989,848.14. This represents a 15.69% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 16.10% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Norges Bank bought a new position in shares of Super Micro Computer during the 4th quarter worth approximately $136,569,000. Assenagon Asset Management S.A. boosted its stake in Super Micro Computer by 1,770.4% in the second quarter. Assenagon Asset Management S.A. now owns 2,174,863 shares of the company’s stock valued at $63,789,000 after acquiring an additional 2,058,588 shares in the last quarter. MUFG Securities EMEA plc boosted its stake in Super Micro Computer by 10,842.9% in the fourth quarter. MUFG Securities EMEA plc now owns 1,050,076 shares of the company’s stock valued at $30,736,000 after acquiring an additional 1,040,480 shares in the last quarter. Ardmore Road Asset Management LP acquired a new stake in Super Micro Computer in the first quarter valued at approximately $11,954,000. Finally, Diversify Wealth Management LLC purchased a new position in Super Micro Computer in the first quarter worth $7,455,000. 84.06% of the stock is currently owned by institutional investors.

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.