Super Micro Computer (NASDAQ:SMCI) Price Target Raised to $39.00

Super Micro Computer (NASDAQ:SMCI) had its price objective boosted by equities researchers at Bank of America from $38.00 to $39.00 in a research note issued to investors on Wednesday, Benzinga reports. The firm currently has an “underperform” rating on the stock. Bank of America‘s price objective points to a potential upside of 24.24% from the company’s previous close.

Other analysts have also recently issued reports about the company. Oppenheimer upgraded Super Micro Computer to an “outperform” rating in a research report on Wednesday. Northland Securities set a $36.00 price target on shares of Super Micro Computer in a report on Wednesday, July 22nd. Wall Street Zen upgraded shares of Super Micro Computer from a “hold” rating to a “buy” rating in a research note on Saturday. Zacks Research lowered Super Micro Computer from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 12th. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Super Micro Computer in a report on Monday, September 21st. Five equities research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $45.60.

Super Micro Computer Stock Performance

NASDAQ:SMCI opened at $31.39 on Wednesday. The firm’s 50-day moving average is $38.02 and its 200-day moving average is $32.70. Super Micro Computer has a 52-week low of $19.48 and a 52-week high of $51.40. The company has a debt-to-equity ratio of 0.65, a quick ratio of 2.07 and a current ratio of 3.87. The company has a market cap of $20.62 billion, a price-to-earnings ratio of 9.81, a PEG ratio of 0.48 and a beta of 2.17.

Super Micro Computer (NASDAQ:SMCI) last released its earnings results on Tuesday, November 3rd. The company reported $1.81 earnings per share for the quarter, beating the consensus estimate of $1.23 by $0.58. Super Micro Computer had a net margin of 5.71% and a return on equity of 27.83%. The business had revenue of $19.95 billion during the quarter, compared to analysts’ expectations of $17.53 billion. During the same quarter last year, the company earned $0.35 earnings per share. The firm’s revenue was up 297.5% on a year-over-year basis. Equities research analysts anticipate that Super Micro Computer will post 4.17 earnings per share for the current year.

Insider Activity

In other Super Micro Computer news, CEO Charles Liang sold 100,000 shares of the business’s stock in a transaction dated 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 completion of the sale, the chief executive officer directly owned 337,506 shares of the company’s stock, valued at approximately $15,194,520.12. The trade was a 22.86% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. 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 Wednesday, October 7th. The shares were sold at an average price of $45.02, for a total transaction of $4,502,000.00. Following the transaction, the director owned 337,506 shares in the company, valued at approximately $15,194,520.12. The trade was a 22.86% decrease in their ownership of the stock. 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. Insiders have sold a total of 400,000 shares of company stock valued at $16,442,000 over the last three months. Company insiders own 16.10% of the company’s stock.

Hedge Funds Weigh In On Super Micro Computer

Several hedge funds have recently added to or reduced their stakes in SMCI. Quest 10 Wealth Builders Inc. increased its stake in 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 purchasing an additional 421 shares in the last quarter. Heritage Family Offices LLP bought a new stake in Super Micro Computer in the 3rd quarter valued at approximately $43,000. Bradley & Co. Private Wealth Management LLC acquired a new position in Super Micro Computer during the 3rd quarter worth approximately $49,000. Root Financial Partners LLC bought a new position in shares of Super Micro Computer during the 3rd quarter worth approximately $55,000. Finally, TOP Private Wealth LLC. bought a new position in shares of Super Micro Computer during the 2nd quarter worth approximately $42,000. Institutional investors and hedge funds own 84.06% of the company’s stock.

Key Headlines Impacting Super Micro Computer

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

• Positive Sentiment: Results substantially beat expectations: Revenue reached $19.95 billion, up nearly 298% year over year and above analysts’ estimates of $17.53 billion. Adjusted earnings of $1.81 per share also topped consensus of about $1.23–$1.24. Article: Super Micro Computer Beats Q1 Earnings and Revenue Estimates
• Positive Sentiment: Guidance points to sustained AI demand: The company forecast next-quarter revenue of about $20.5 billion at the midpoint, above analyst expectations, and raised its full-year outlook. Executives said an individual AI deployment can now exceed the size of a quarter’s revenue a year ago. Article: Executive Says a Single AI Order Can Exceed a Year-Ago Quarter
• Positive Sentiment: Analyst reaction added support: One analyst described the earnings report as among the season’s strongest, as the figures offered fresh evidence of robust spending on AI infrastructure. Article: Analyst Calls SMCI Print One of the Best of the Season
• Neutral Sentiment: Recent volatility is a backdrop: SMCI had been caught in a broader AI-hardware selloff, with shares down over the prior week despite the company’s preliminary revenue beat. The earnings report may ease concerns about demand, but sector sentiment remains a factor. Article: Super Micro Sinks Despite a Revenue Beat
• Negative Sentiment: Margins and cash use warrant attention: Gross margin declined to 12.7% from 17.5% in the prior quarter, while higher inventory and receivables contributed to cash outflow. If rapid growth requires heavy working-capital investment or margins weaken further, it could temper the positive earnings reaction. Article: Supermicro Sales Quadruple as Cash Drains

About Super Micro Computer

Super Micro Computer, Inc develops and sells high-performance server and storage systems for data centers, cloud computing, enterprise IT, telecommunications, and other demanding computing environments. The company offers application-optimized servers, workstations, blade and rack systems, storage solutions, networking products, and related infrastructure.

Supermicro also provides systems designed for artificial intelligence, machine learning, accelerated computing, and other workloads that use graphics processing units and specialized processors.