Super Micro Computer (NASDAQ:SMCI) Stock Gets Downgrade from Zacks Research

Key Points

• Zacks Research downgraded Super Micro Computer from “Strong Buy” to “Hold,” aligning with the broader analyst consensus of “Hold” and an average price target of $43.07.
• Super Micro reported quarterly EPS of $1.70, well above the $0.92 consensus estimate, while revenue rose 93.2% year over year to $11.12 billion but fell short of forecasts.
• Insiders sold shares worth about $16.4 million over the past 90 days, including 100,000-share sales each by the CEO and a director; institutional investors still own approximately 84.1% of the stock.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) was downgraded by stock analysts at Zacks Research from a "strong-buy" rating to a "hold" rating in a note issued to investors on Monday, Zacks reports.

Several other equities research analysts have also weighed in on the company. Needham & Company LLC restated a "buy" rating and issued a $46.00 target price on shares of Super Micro Computer in a report on Wednesday, August 12th. Sanford C. Bernstein set a $42.00 price target on shares of Super Micro Computer in a research report on Thursday, August 13th. Stifel Nicolaus set a $42.00 price objective on Super Micro Computer in a report on Wednesday, August 12th. The Goldman Sachs Group reissued a "sell" rating and issued a $34.00 price target (up from $30.00) on shares of Super Micro Computer in a report on Wednesday, August 12th. Finally, Citigroup reaffirmed a "neutral" rating and set a $45.00 price objective (up from $39.00) on shares of Super Micro Computer in a report on Thursday, October 8th. Four investment analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat, Super Micro Computer currently has a consensus rating of "Hold" and a consensus price target of $43.07.

Super Micro Computer Price Performance

Shares of NASDAQ:SMCI opened at $39.07 on Monday. The company has a market capitalization of $25.67 billion, a PE ratio of 12.21, a price-to-earnings-growth ratio of 0.77 and a beta of 2.02. 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 stock has a fifty day moving average of $38.60 and a 200-day moving average of $33.24. Super Micro Computer has a one year low of $19.48 and a one year high of $56.60.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last posted its quarterly earnings results on Tuesday, August 11th. The company reported $1.70 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.92 by $0.78. The business had revenue of $11.12 billion during the quarter, compared to analyst estimates of $11.60 billion. Super Micro Computer had a net margin of 5.71% and a return on equity of 27.83%. The firm's revenue was up 93.2% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.31 earnings per share. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS. As a group, equities analysts anticipate that Super Micro Computer will post 3.94 EPS for the current fiscal year.

Insiders Place Their Bets

In other Super Micro Computer news, CEO Charles 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 chief executive officer directly owned 337,506 shares in the company, valued at approximately $15,194,520.12. This represents a 22.86% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through 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 business's stock in a transaction that occurred on 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 sale, the director directly owned 337,506 shares of the company's stock, valued at approximately $15,194,520.12. This trade represents 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. In the last 90 days, insiders have sold 400,000 shares of company stock valued at $16,442,000. 16.10% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Super Micro Computer

Several institutional investors and hedge funds have recently made changes to their positions in SMCI. Quantinno Capital Management LP lifted its holdings in Super Micro Computer by 49.0% during the 1st quarter. Quantinno Capital Management LP now owns 155,225 shares of the company's stock worth $3,534,000 after purchasing an additional 51,049 shares during the last quarter. Sei Investments Co. raised its stake in Super Micro Computer by 134.8% in the 1st quarter. Sei Investments Co. now owns 144,238 shares of the company's stock worth $3,284,000 after purchasing an additional 82,820 shares in the last quarter. Renaissance Technologies LLC bought a new stake in Super Micro Computer in the 1st quarter valued at about $1,353,000. Czech National Bank increased its holdings in shares of Super Micro Computer by 16.9% during the second quarter. Czech National Bank now owns 160,189 shares of the company's stock worth $4,698,000 after purchasing an additional 23,158 shares during the period. Finally, OP Asset Management Ltd acquired a new stake in shares of Super Micro Computer in the first quarter valued at approximately $1,221,000. Institutional investors and hedge funds own 84.06% of the company's stock.

Super Micro Computer News Summary

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

• Positive Sentiment: Supermicro announced an expanded portfolio of Open Compute Project-accepted systems, racks, 48V power solutions, networking equipment, liquid-cooling products and rear-door heat exchangers. The integrated offerings are designed to accelerate rack-scale AI and high-performance-computing deployments, potentially supporting future demand and revenue growth. Supermicro Expands Integrated Open Compute Project Portfolio
• Positive Sentiment: Super Micro received a Zacks Rank #1, or “Strong Buy,” as earnings estimates improved. Analysts and market commentators also pointed to the company’s sizable order pipeline and exposure to AI infrastructure as potential catalysts. Super Micro Upgraded to Strong Buy
• Neutral Sentiment: Wall Street brokerages collectively rated SMCI “Hold,” indicating that analysts remain divided despite the company’s AI-related growth opportunities. Super Micro Stock Rated Hold
• Negative Sentiment: A former contractor reportedly pleaded guilty to conspiring with a Super Micro co-founder to illegally export restricted AI technology to China. The development revived concerns about regulatory scrutiny, potential penalties and disruption to the company’s international AI business. Why Super Micro Stock Is Nosediving
• Negative Sentiment: Recent insider sales by the CEO and a director may add selling pressure and reinforce caution after SMCI’s strong prior rally. Investors are also weighing execution and valuation risks against the company’s AI growth projections.

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.

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