Super Micro Computer, Inc. $SMCI Shares Purchased by Commonwealth Equity Services LLC

Key Points

• Commonwealth Equity Services increased its Super Micro Computer holdings by 18.2% in the third quarter, adding 39,587 shares to reach 257,243 shares valued at about $10.6 million. Institutional investors and hedge funds own 84.06% of the stock.
• Super Micro reported quarterly EPS of $1.81, above the $1.28 consensus, and revenue of $19.95 billion versus estimates of $16.29 billion; revenue rose 297.5% year over year.
• The stock was reported down 11.3%, while analysts’ average rating was Hold with a $41.29 average price target. Reports of a DOJ investigation into alleged product-smuggling activity raise potential legal and reputational risks; the allegations are not proof of wrongdoing.

Commonwealth Equity Services LLC raised its holdings in Super Micro Computer, Inc. (NASDAQ:SMCI - Free Report) by 18.2% in the 3rd quarter, according to the company in its most recent filing with the SEC. The firm owned 257,243 shares of the company's stock after acquiring an additional 39,587 shares during the quarter. Commonwealth Equity Services LLC's holdings in Super Micro Computer were worth $10,565,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. SLT Holdings LLC grew its stake in shares of Super Micro Computer by 3.0% in the third quarter. SLT Holdings LLC now owns 10,400 shares of the company's stock worth $427,000 after purchasing an additional 300 shares during the last quarter. World Equity Group Inc. grew its position in shares of Super Micro Computer by 3.8% in the 1st quarter. World Equity Group Inc. now owns 9,877 shares of the company's stock valued at $225,000 after buying an additional 362 shares during the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS grew its position in shares of Super Micro Computer by 0.5% in the 1st quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 117,205 shares of the company's stock valued at $2,669,000 after buying an additional 564 shares during the last quarter. MCF Advisors LLC increased its stake in shares of Super Micro Computer by 22.8% in the second quarter. MCF Advisors LLC now owns 3,667 shares of the company's stock valued at $108,000 after buying an additional 680 shares during the period. Finally, EverSource Wealth Advisors LLC increased its stake in shares of Super Micro Computer by 33.0% in the first quarter. EverSource Wealth Advisors LLC now owns 3,788 shares of the company's stock valued at $86,000 after buying an additional 939 shares during the period. 84.06% of the stock is currently owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on SMCI. Rosenblatt Securities restated a "buy" rating and set a $57.00 price objective on shares of Super Micro Computer in a research report on Wednesday, November 4th. Wedbush upped their target price on Super Micro Computer from $34.00 to $40.00 and gave the company a "neutral" rating in a report on Wednesday, August 12th. Sanford C. Bernstein set a $42.00 target price on shares of Super Micro Computer in a research report on Thursday, August 13th. Weiss Ratings restated a "hold (c)" rating on shares of Super Micro Computer in a report on Monday, September 21st. Finally, Stifel Nicolaus set a $42.00 price target on shares of Super Micro Computer in a research report on Wednesday, August 12th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, eleven have issued a Hold rating and three have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Hold" and an average price target of $41.29.

Recent Super Micro Computer Headlines

These are some of the SMCI headlines that stood out recently:

• Positive Sentiment: Super Micro began shipping its H15 server portfolio, powered by AMD’s latest EPYC processors and designed for AI, cloud and high-performance computing workloads. The launch supports the company’s effort to expand its AI-server offerings. Article: Supermicro Now Shipping Next-Generation Servers
• Neutral Sentiment: Technology stocks also declined late Thursday, adding broader sector pressure, though company-specific regulatory concerns appear to be the more direct catalyst for SMCI. Article: Sector Update: Tech Stocks Fall Late Afternoon
• Negative Sentiment: Reports say the DOJ is investigating whether entities linked to Alice Huang were involved in attempts to smuggle Super Micro products into China. The allegations are not proof of wrongdoing, but the probe raises potential legal, compliance and reputational risks. Reports also say Singapore authorities have raised concerns about the company’s cooperation. Article: Super Micro Computer Slips on Report of DOJ Probe Into Alice Huang

Super Micro Computer Trading Down 11.3%

NASDAQ SMCI opened at $26.99 on Friday. The stock has a market capitalization of $17.79 billion, a P/E ratio of 5.75, a P/E/G ratio of 0.34 and a beta of 2.17. The business has a 50 day simple moving average of $36.76 and a 200 day simple moving average of $32.59. The company has a debt-to-equity ratio of 0.56, a current ratio of 3.02 and a quick ratio of 1.66. Super Micro Computer, Inc. has a one year low of $19.48 and a one year high of $51.40.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last issued its quarterly earnings results on Tuesday, November 3rd. The company reported $1.81 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.28 by $0.53. The firm had revenue of $19.95 billion for the quarter, compared to analyst estimates of $16.29 billion. Super Micro Computer had a return on equity of 38.97% and a net margin of 6.77%. The company's revenue was up 297.5% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.35 earnings per share. Research analysts expect that Super Micro Computer, Inc. will post 5.90 earnings per share for the current year.

Insider Activity

In related news, Director Chiu-Chu Liang sold 100,000 shares of the business's stock in a transaction 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 $15,194,520.12. The trade was a 22.86% decrease in their position. The transaction was disclosed in a legal filing 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 the business's stock in a transaction 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 chief executive officer owned 337,506 shares in the company, valued at $15,194,520.12. The trade was a 22.86% decrease in their position. 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. Insiders sold 400,000 shares of company stock worth $16,442,000 in the last quarter. 16.10% of the stock is owned by corporate insiders.

Super Micro Computer Company Profile

Super Micro Computer, Inc. designs and sells server and storage systems, networking equipment, and related software and services. Its offerings include systems for data centers, cloud computing, enterprise applications, high-performance computing, artificial intelligence, and edge computing. The company emphasizes application-optimized solutions, including integrated rack-scale systems that combine computing, storage, networking, and management tools. It also provides system configuration, deployment, and support services.

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