Super Micro Computer (NASDAQ:SMCI) Stock Rating Upgraded by Wall Street Zen

Key Points

• Wall Street Zen upgraded Super Micro Computer from “hold” to “buy,” but broader analyst sentiment remains cautious: the stock has an average “hold” rating, with 12 holds, four buys, two sells, and an average price target of $43.07.
• Super Micro reported quarterly EPS of $1.70, beating estimates of $0.92, while revenue rose 93.2% year over year to $11.12 billion but fell short of the $11.60 billion consensus estimate. The company issued fiscal Q1 2027 EPS guidance of $1.01–$1.10.
• Insiders sold 400,000 shares worth approximately $16.4 million over the past three months, including 100,000-share sales by the CEO and a director under pre-arranged trading plans; institutional investors own 84.06% of the stock.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued on Saturday, Wall Street Zen reports.

Several other equities analysts have also recently weighed in on the company. Bank of America reiterated an "underperform" rating on shares of Super Micro Computer in a report on Wednesday, August 12th. Sanford C. Bernstein set a $42.00 target price on Super Micro Computer in a research note on Thursday, August 13th. Northland Securities set a $36.00 target price on shares of Super Micro Computer in a report on Wednesday, July 22nd. Stifel Nicolaus set a $42.00 price target on shares of Super Micro Computer in a report on Wednesday, August 12th. Finally, Zacks Research downgraded shares of Super Micro Computer from a "strong-buy" rating to a "hold" rating in a research report on Monday, October 12th. Four research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the company has an average rating of "Hold" and an average price target of $43.07.

Super Micro Computer Price Performance

SMCI opened at $32.95 on Friday. 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 has a 12 month low of $19.48 and a 12 month high of $53.01. The company has a fifty day simple moving average of $38.23 and a 200 day simple moving average of $32.68. The stock has a market cap of $21.65 billion, a P/E ratio of 10.30, a P/E/G ratio of 0.54 and a beta of 2.02.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last posted 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 in the previous year, the company posted $0.31 earnings per share. The company'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. On average, research analysts expect that Super Micro Computer will post 4.17 EPS for the current year.

Insider Buying and Selling

In other news, Director Chiu-Chu Liang sold 100,000 shares of Super Micro Computer stock in a transaction that occurred on 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 sale, the director directly owned 337,506 shares in the company, valued at $15,194,520.12. This trade represents a 22.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Liang sold 100,000 shares of Super Micro Computer stock in a transaction that occurred on 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 completion of the sale, the chief executive officer owned 337,506 shares in the company, valued at $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 three months, insiders sold 400,000 shares of company stock worth $16,442,000. 16.10% of the stock is owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in SMCI. Bradley & Co. Private Wealth Management LLC acquired a new position in shares of Super Micro Computer during the 3rd quarter worth about $49,000. Root Financial Partners LLC bought a new position in shares of Super Micro Computer in the 3rd quarter valued at about $55,000. TOP Private Wealth LLC. acquired a new stake in shares of Super Micro Computer in the second quarter valued at about $42,000. Comprehensive Financial Planning Inc. PA acquired a new stake in shares of Super Micro Computer in the second quarter valued at about $43,000. Finally, Contravisory Investment Management Inc. acquired a new stake in shares of Super Micro Computer in the second quarter valued at about $49,000. Institutional investors own 84.06% of the company's stock.

Trending Headlines about Super Micro Computer

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

• Positive Sentiment: Super Micro enters earnings with strong AI-server demand, expanding rack-scale systems and liquid-cooling solutions, and a favorable Earnings ESP, according to Zacks. These trends could support revenue growth and potentially an earnings beat. Should You Buy, Sell or Hold SMCI Stock Before Q1 Earnings?
• Positive Sentiment: VyOS Networks opened a waitlist for a pre-validated routing system combining Supermicro hardware with VyOS software. The $29,000-plus system targets internet exchanges, regional ISPs and other operators needing 100 GbE routing, providing a new enterprise use case for Supermicro equipment. VyOS Networks Opens Waitlist for Pre-Validated VyOS + Supermicro Routing System
• Neutral Sentiment: Options markets are pricing in an unusually large approximately 13% move around earnings, signaling elevated volatility rather than a clear bullish or bearish direction. Options Traders Expect a Massive Move in SMCI Stock After Earnings
• Positive Sentiment: One report highlighted Supermicro’s nearly doubled revenue, a roughly $60 billion order backlog and valuation that appears low relative to peers. Those factors reinforce the long-term AI-infrastructure opportunity, although investors are waiting for evidence that backlog converts into profitable growth. Supermicro Has Already Survived the AI Hype Cycle
• Negative Sentiment: Intel’s warning that memory shortages are constraining PC demand has triggered a selloff across computer and server hardware stocks. Investors may fear higher component costs, supply limitations and weaker customer demand could weigh on Super Micro’s margins or deliveries. Intel Warning Hits Hardware Stocks
• Negative Sentiment: Technical momentum has weakened, with the stock posting several recent declines and a bearish signal emerging ahead of earnings. This leaves SMCI vulnerable to further volatility if results or forward guidance fail to meet elevated AI-related expectations. Super Micro Stock Dips as Earnings, Bear Signal Loom

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.

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