Super Micro Computer, Inc. (NASDAQ:SMCI) Stock Has Consensus Price Target of $43.07

Key Points

• Analysts broadly rate Super Micro Computer “Hold.” Eighteen firms give the stock an average 12-month price target of $43.07, with 11 holds, four buys, one strong buy and two sells.
• Business momentum remains strong but mixed. Quarterly EPS of $1.70 beat the $0.92 consensus, while revenue rose 93.2% year over year to $11.12 billion but fell short of estimates.
• Insider selling and regulatory concerns remain risks. CEO Charles Liang and director Chiu-Chu Liang each sold 100,000 shares under pre-arranged trading plans, while an illegal AI-chip export case involving a contractor could add compliance and reputational pressure.

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) have been assigned an average recommendation of "Hold" from the eighteen ratings firms that are presently covering the company, MarketBeat reports. Two research analysts have rated the stock with a sell rating, eleven have issued a hold rating, four have assigned a buy rating and one has given a strong buy rating to the company. The average 12 month price objective among brokers that have issued ratings on the stock in the last year is $43.07.

SMCI has been the subject of a number of recent analyst reports. Weiss Ratings reiterated a "hold (c)" rating on shares of Super Micro Computer in a report on Monday, September 21st. Mizuho increased their price target on shares of Super Micro Computer from $35.00 to $43.00 and gave the company a "neutral" rating in a research report on Tuesday, October 6th. 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. Barclays set a $39.00 price target on shares of Super Micro Computer and gave the stock an "equal weight" rating in a report on Wednesday, August 12th. Finally, Rosenblatt Securities boosted their price objective on shares of Super Micro Computer from $45.00 to $51.00 and gave the company a "buy" rating in a research report on Wednesday, August 12th.

More Super Micro Computer News

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

• Positive Sentiment: Analyst sentiment improved. Zacks upgraded Super Micro to Rank #1, or “Strong Buy,” citing stronger earnings prospects. The upgrade could support near-term buying interest. Super Micro Upgraded to Strong Buy
• Positive Sentiment: A sizable order pipeline supports the growth outlook. The company is viewed as having substantial future demand, particularly for AI servers, which may help sustain revenue growth and reinforce the bullish case for the stock. Why Super Micro Stock Is Heading to $60
• Neutral Sentiment: Insider transactions drew investor attention. CEO Charles Liang and director Chiu-Chu Liang each sold 100,000 shares at approximately $45.02, worth about $4.5 million per transaction. The CEO’s sale was reported under a trading plan, which may reduce its signaling value, but the transactions can still weigh on sentiment. CEO Sells Shares Under Trading Plan
• Negative Sentiment: A contractor pleaded guilty in a major illegal AI-chip export case. Reports describe a scheme involving approximately $2.5 billion in AI servers or chips. Although the reports identify a contractor rather than alleging that Super Micro itself committed wrongdoing, the association increases regulatory, compliance and reputational concerns for the AI-server manufacturer. Contractor Pleads Guilty in AI Chip Export Scheme

Super Micro Computer Stock Performance

Shares of SMCI stock opened at $39.98 on Tuesday. The company has a debt-to-equity ratio of 0.65, a quick ratio of 2.07 and a current ratio of 3.87. Super Micro Computer has a fifty-two week low of $19.48 and a fifty-two week high of $56.60. The stock has a 50 day moving average price of $38.46 and a two-hundred day moving average price of $33.14. The company has a market capitalization of $26.27 billion, a P/E ratio of 12.49, a PEG ratio of 0.81 and a beta of 2.02.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last released its quarterly earnings data on Tuesday, August 11th. The company reported $1.70 earnings per share 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 prior year, the firm posted $0.31 earnings per share. The business's quarterly revenue was up 93.2% compared to the same quarter last year. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS. Analysts expect that Super Micro Computer will post 3.94 earnings per share for the current year.

Insider Activity

In other news, Director Chiu-Chu Liang sold 100,000 shares of the 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 completion of the sale, the director directly owned 337,506 shares in the company, valued at approximately $15,194,520.12. This represents a 22.86% decrease in their ownership of the stock. 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, CEO Charles Liang sold 100,000 shares of the firm's stock in a transaction dated Wednesday, October 7th. The stock was sold at an average price of $45.02, for a total value of $4,502,000.00. Following the completion of the sale, the chief executive officer directly owned 337,506 shares in the company, valued at $15,194,520.12. The trade was a 22.86% 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. Over the last ninety days, insiders have sold 400,000 shares of company stock valued at $16,442,000. Insiders own 16.10% of the company's stock.

Institutional Investors Weigh In On Super Micro Computer

Several institutional investors and hedge funds have recently bought and sold shares of SMCI. Dimensional Fund Advisors LP lifted its position in shares of Super Micro Computer by 2.8% in the 1st quarter. Dimensional Fund Advisors LP now owns 4,082,780 shares of the company's stock worth $92,872,000 after purchasing an additional 111,388 shares during the period. Assenagon Asset Management S.A. increased its position in shares of Super Micro Computer by 1,770.4% during 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 buying an additional 2,058,588 shares during the period. Swiss National Bank raised its stake in Super Micro Computer by 7.6% in the first quarter. Swiss National Bank now owns 1,576,800 shares of the company's stock worth $35,904,000 after buying an additional 111,100 shares in the last quarter. Hsbc Holdings PLC raised its stake in Super Micro Computer by 13.7% in the fourth quarter. Hsbc Holdings PLC now owns 1,134,891 shares of the company's stock worth $33,203,000 after buying an additional 137,180 shares in the last quarter. Finally, Principal Financial Group Inc. raised its stake in Super Micro Computer by 1.3% in the first quarter. Principal Financial Group Inc. now owns 565,746 shares of the company's stock worth $12,882,000 after buying an additional 7,373 shares in the last quarter. Hedge funds and other institutional investors own 84.06% of the company's stock.

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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