22,994 Shares in Super Micro Computer, Inc. $SMCI Bought by Sound Income Strategies LLC

Key Points

• Sound Income Strategies LLC acquired 22,994 shares of Super Micro Computer in the third quarter, valued at approximately $983,000. Institutional investors now own 84.06% of SMCI’s outstanding shares.
• Analyst sentiment remains cautious, with an overall “Hold” rating and an average price target of $43.07; individual targets range from $36 to $45.
• SMCI 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. However, CEO Charles Liang and director Chiu-Chu Liang each sold 100,000 shares under pre-arranged Rule 10b5-1 plans.

Sound Income Strategies LLC bought a new position in Super Micro Computer, Inc. (NASDAQ:SMCI - Free Report) in the 3rd quarter, according to the company in its most recent Form 13F filing with the SEC. The institutional investor bought 22,994 shares of the company's stock, valued at approximately $983,000.

Several other hedge funds also recently made changes to their positions in SMCI. Assenagon Asset Management S.A. lifted its position in 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. Ardmore Road Asset Management LP bought a new position in shares of Super Micro Computer in the 1st quarter worth about $11,954,000. Diversify Wealth Management LLC purchased a new position in Super Micro Computer during the 1st quarter valued at about $7,455,000. VIRGINIA RETIREMENT SYSTEMS ET Al bought a new stake in Super Micro Computer during the second quarter worth about $8,412,000. Finally, Virtu Financial LLC purchased a new stake in Super Micro Computer in the fourth quarter worth about $4,814,000. 84.06% of the stock is currently owned by institutional investors.

More Super Micro Computer News

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

• Positive Sentiment: Supermicro added Shesha Krishnapura, a 35-year Intel veteran with high-performance computing and AI infrastructure experience, as an independent director. The appointment may strengthen the company’s strategic and operational expertise as it expands in AI data-center infrastructure. Supermicro Appoints Shesha Krishnapura to Board of Directors
• Positive Sentiment: Super Micro enters fiscal 2027 with a reported order pipeline exceeding $60 billion, supported by demand for AI systems and enterprise infrastructure. If converted into revenue, the pipeline could support continued growth. Can Super Micro Computer Sustain Its AI Capex Momentum in 2027?
• Positive Sentiment: Zacks added SMCI to its Rank #1 “Strong Buy” and value-stock lists, providing a favorable near-term analyst signal. Zacks Strong Buy Coverage
• Neutral Sentiment: A report stated that short interest totaled zero shares, implying no days-to-cover. This figure conflicts with the description of a sharp increase in short interest and may reflect incomplete or inaccurate data, limiting its usefulness as a trading signal.
• Negative Sentiment: CEO Charles Liang and director Chiu-Chu Liang each sold 100,000 shares at an average of $45.02, reducing their direct holdings by 22.86%. The sales were made under pre-arranged Rule 10b5-1 plans, which reduces their significance but may still weigh on sentiment.
• Negative Sentiment: Investors are questioning whether SMCI’s roughly 11-fold five-year gain is supported by long-term cash generation. High-volume GPU systems typically carry lower margins, raising concerns that rapid sales growth may not translate proportionally into profits. One Unsettled Question Sits Under Super Micro Computer Stock
• Negative Sentiment: Recent gains in server stocks have begun to unwind as investors take profits, adding to short-term selling pressure across the sector. Super Micro Drops as Profit Taking Unwinds Server Rally

Analyst Ratings Changes

A number of analysts have recently commented on the company. Northland Securities set a $36.00 price target on Super Micro Computer in a research report on Wednesday, July 22nd. Citigroup reissued a "neutral" rating and issued a $45.00 target price (up from $39.00) on shares of Super Micro Computer in a report on Thursday. Barclays set a $39.00 target price on Super Micro Computer and gave the stock an "equal weight" rating in a research note on Wednesday, August 12th. Weiss Ratings restated a "hold (c)" rating on shares of Super Micro Computer in a report on Monday, September 21st. Finally, Mizuho lifted their price target on Super Micro Computer from $35.00 to $43.00 and gave the stock a "neutral" rating in a research report on Tuesday. One 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 assigned a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $43.07.

Super Micro Computer Stock Performance

SMCI stock opened at $41.85 on Friday. The stock's 50 day simple moving average is $38.23 and its 200 day simple moving average is $32.93. The company has a current ratio of 3.87, a quick ratio of 2.07 and a debt-to-equity ratio of 0.65. Super Micro Computer, Inc. has a 12-month low of $19.48 and a 12-month high of $58.51. The stock has a market capitalization of $27.49 billion, a PE ratio of 13.08, a price-to-earnings-growth ratio of 0.83 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 EPS for the quarter, topping 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 business had revenue of $11.12 billion during the quarter, compared to analyst estimates of $11.60 billion. During the same quarter last year, the company earned $0.31 EPS. The company'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. As a group, research analysts forecast that Super Micro Computer, Inc. will post 3.94 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Charles Liang sold 100,000 shares of the business's 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 transaction, the chief executive officer directly owned 337,506 shares of the company's stock, valued at $15,194,520.12. The trade was 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, Director Chiu-Chu Liang sold 100,000 shares of the 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 transaction, the director owned 337,506 shares in the company, valued at approximately $15,194,520.12. This trade represents a 22.86% decrease in their position. The disclosure for this sale is available in the SEC filing. 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 worth $16,442,000 in the last 90 days. Company insiders own 16.10% of the company's stock.

About Super Micro Computer

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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