Townsquare Capital LLC Increases Stake in Super Micro Computer, Inc. (NASDAQ:SMCI)

Key Points

• Townsquare Capital LLC increased its holdings in Super Micro Computer, Inc. by 1,391.0% during the first quarter, owning 287,699 shares worth approximately $9.85 million at quarter-end.
• Analysts have varied price targets for Super Micro Computer, with Barclays raising it from $29.00 to $45.00, and Citigroup increasing it to $52.00, indicating a general outlook of "Hold" with an average price target of $44.75.
• The company reported $0.41 EPS for the latest quarter, falling short of estimates and showing an 8.5% year-over-year revenue increase, with margins and return on equity remaining stable.

Townsquare Capital LLC boosted its position in Super Micro Computer, Inc. (NASDAQ:SMCI - Free Report) by 1,391.0% in the first quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 287,699 shares of the company's stock after purchasing an additional 268,403 shares during the quarter. Townsquare Capital LLC's holdings in Super Micro Computer were worth $9,851,000 at the end of the most recent reporting period.

Several other hedge funds have also recently modified their holdings of the stock. Vanguard Group Inc. increased its holdings in shares of Super Micro Computer by 3.9% during the first quarter. Vanguard Group Inc. now owns 64,407,769 shares of the company's stock valued at $2,205,322,000 after acquiring an additional 2,415,276 shares in the last quarter. FMR LLC acquired a new position in shares of Super Micro Computer during the fourth quarter valued at about $292,869,000. Invesco Ltd. increased its holdings in shares of Super Micro Computer by 929.5% during the fourth quarter. Invesco Ltd. now owns 7,542,742 shares of the company's stock valued at $229,903,000 after acquiring an additional 6,810,082 shares in the last quarter. Northern Trust Corp increased its holdings in shares of Super Micro Computer by 1,573.8% during the fourth quarter. Northern Trust Corp now owns 4,897,876 shares of the company's stock valued at $149,287,000 after acquiring an additional 4,605,260 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. increased its holdings in shares of Super Micro Computer by 3.3% during the first quarter. Charles Schwab Investment Management Inc. now owns 3,771,630 shares of the company's stock valued at $129,141,000 after acquiring an additional 120,496 shares in the last quarter. Institutional investors and hedge funds own 84.06% of the company's stock.

Insider Transactions at Super Micro Computer

In other news, CEO Charles Liang sold 300,000 shares of the stock in a transaction that occurred on Wednesday, June 18th. The stock was sold at an average price of $45.00, for a total transaction of $13,500,000.00. Following the transaction, the chief executive officer owned 66,903,640 shares in the company, valued at $3,010,663,800. This trade represents a 0.45% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO David E. Weigand sold 67,000 shares of the stock in a transaction that occurred on Tuesday, May 20th. The shares were sold at an average price of $44.02, for a total value of $2,949,340.00. Following the transaction, the chief financial officer owned 88,599 shares in the company, valued at $3,900,127.98. This trade represents a 43.06% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 1,067,000 shares of company stock valued at $53,949,340 in the last three months. 17.60% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

SMCI has been the topic of several recent analyst reports. KGI Securities initiated coverage on shares of Super Micro Computer in a report on Wednesday, May 7th. They set a "neutral" rating on the stock. JPMorgan Chase & Co. dropped their target price on Super Micro Computer from $46.00 to $45.00 and set a "neutral" rating on the stock in a research report on Wednesday. Needham & Company LLC upped their target price on Super Micro Computer from $39.00 to $60.00 and gave the company a "buy" rating in a research report on Wednesday. Wall Street Zen upgraded Super Micro Computer to a "sell" rating in a research report on Thursday, May 8th. Finally, Citigroup reiterated a "neutral" rating and issued a $52.00 target price (up previously from $37.00) on shares of Super Micro Computer in a research report on Friday, July 11th. Three analysts have rated the stock with a sell rating, eight have given a hold rating, six have given a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, the stock presently has an average rating of "Hold" and a consensus target price of $44.75.

Super Micro Computer Stock Performance

Super Micro Computer stock traded down $2.07 during mid-day trading on Friday, hitting $44.60. The company had a trading volume of 43,630,827 shares, compared to its average volume of 44,284,680. The company has a current ratio of 5.32, a quick ratio of 3.95 and a debt-to-equity ratio of 0.74. Super Micro Computer, Inc. has a 12-month low of $17.25 and a 12-month high of $66.44. The company's fifty day moving average is $48.61 and its 200-day moving average is $41.57. The company has a market capitalization of $26.62 billion, a price-to-earnings ratio of 26.87, a P/E/G ratio of 1.14 and a beta of 1.46.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last released its quarterly earnings data on Tuesday, August 5th. The company reported $0.41 EPS for the quarter, missing the consensus estimate of $0.44 by ($0.03). Super Micro Computer had a return on equity of 17.14% and a net margin of 4.77%. The company had revenue of $5.76 billion during the quarter, compared to analysts' expectations of $5.88 billion. During the same quarter in the prior year, the company posted $6.25 EPS. The company's revenue for the quarter was up 8.5% on a year-over-year basis. Equities research analysts predict that Super Micro Computer, Inc. will post 1.86 EPS for the current year.

Super Micro Computer Profile

Super Micro Computer, Inc, together with its subsidiaries, develops and manufactures high performance server and storage solutions based on modular and open architecture in the United States, Europe, Asia, and internationally. Its solutions range from complete server, storage systems, modular blade servers, blades, workstations, full racks, networking devices, server sub-systems, server management software, and security software.