Super Micro Computer, Inc. $SMCI Stock: Counterpoint Mutual Funds LLC Trims Stake

Key Points

• Counterpoint Mutual Funds sharply reduced its SMCI stake: The firm sold 203,701 shares in the third quarter, cutting its position by 86.6% to 31,581 shares worth approximately $1.3 million. Institutional investors still own 84.06% of the company.
• Analyst sentiment remains mixed: SMCI carries a consensus “Hold” rating and an average price target of $43.07, although Rosenblatt and Needham maintain “Buy” ratings. The stock opened at $31.63, well below the consensus target.
• AI growth is offset by execution and governance concerns: Quarterly EPS exceeded estimates and revenue rose 93.2% year over year, but scrutiny over cash usage, financial controls, CFO turnover, insider selling, and broader AI-hardware spending risks continues to weigh on the shares.

Counterpoint Mutual Funds LLC cut its stake in Super Micro Computer, Inc. (NASDAQ:SMCI - Free Report) by 86.6% during the 3rd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 31,581 shares of the company's stock after selling 203,701 shares during the quarter. Counterpoint Mutual Funds LLC's holdings in Super Micro Computer were worth $1,297,000 as of its most recent SEC filing.

Several other large investors have also recently bought and sold shares of the stock. SHP Wealth Management acquired a new stake in Super Micro Computer in the 4th quarter worth about $29,000. Banque Cantonale Vaudoise bought a new stake in Super Micro Computer during the first quarter worth about $37,000. TOP Private Wealth LLC. bought a new position in Super Micro Computer in the 2nd quarter valued at about $42,000. Comprehensive Financial Planning Inc. PA acquired a new stake in shares of Super Micro Computer during the 2nd quarter worth approximately $43,000. Finally, Contravisory Investment Management Inc. acquired a new position in Super Micro Computer during the second quarter valued at approximately $49,000. 84.06% of the stock is owned by institutional investors.

Key Headlines Impacting Super Micro Computer

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

• Positive Sentiment: New CFO could improve financial oversight: Super Micro appointed Mark Long, a former Western Digital finance executive, as chief financial officer effective October 15. His experience may help strengthen accounting, reporting, and cash-management processes. Super Micro appoints Mark Long as chief financial officer
• Positive Sentiment: Some analysts still see substantial upside: Rosenblatt Securities reaffirmed its “buy” rating with a $51 price target, while one longer-term analysis estimated a potential target near $72. These targets reflect confidence in Super Micro’s exposure to AI server demand. Wall Street sets SMCI stock price target
• Neutral Sentiment: Valuation is inexpensive but may reflect execution risks: Super Micro trades at roughly 9.8 times earnings, well below the S&P 500 median cited in the analysis. Investors must determine whether the discount represents a bargain or reflects concerns that reported profits are not translating into cash. Is SMCI Stock A Real Bargain?
• Negative Sentiment: The CFO transition raises governance concerns: The replacement came nearly two years after an advisory committee reportedly sought the former CFO’s removal. Coverage also highlights a nearly $7 billion use of free cash flow and prior legal and compliance controversies, increasing scrutiny of Super Micro’s financial controls. Super Micro’s CFO is out after change was slow-walked
• Negative Sentiment: AI hardware-sector concerns are weighing on SMCI: Investors are questioning the timing and financing of enterprise AI infrastructure spending, pressuring Super Micro alongside Dell and Hewlett Packard Enterprise. The sector-wide risk-off move is adding to company-specific concerns. AI financing worries extend hardware selloff

Analyst Ratings Changes

A number of analysts have weighed in on SMCI shares. Rosenblatt Securities reaffirmed a "buy" rating and set a $51.00 target price on shares of Super Micro Computer in a research note on Friday. Northland Securities set a $36.00 price target on shares of Super Micro Computer in a report on Wednesday, July 22nd. Sanford C. Bernstein set a $42.00 price target on Super Micro Computer in a research note on Thursday, August 13th. Needham & Company LLC reissued a "buy" rating and set a $46.00 target price on shares of Super Micro Computer in a research report on Wednesday, August 12th. Finally, Citigroup restated 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, October 8th. Four research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $43.07.

Super Micro Computer Price Performance

Super Micro Computer stock opened at $31.63 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. The stock has a market cap of $20.78 billion, a P/E ratio of 9.88, a P/E/G ratio of 0.61 and a beta of 2.02. The company's 50 day moving average price is $38.84 and its two-hundred day moving average price is $33.42. Super Micro Computer, Inc. has a 52 week low of $19.48 and a 52 week high of $56.60.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last announced its quarterly earnings data on Tuesday, August 11th. The company reported $1.70 EPS for the quarter, topping the consensus estimate of $0.92 by $0.78. Super Micro Computer had a net margin of 5.71% and a return on equity of 27.83%. The business had revenue of $11.12 billion for the quarter, compared to analyst estimates of $11.60 billion. During the same quarter in the previous year, the firm 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, equities analysts predict that Super Micro Computer, Inc. will post 3.94 earnings per share for the current year.

Insider Activity

In other news, CEO Charles Liang sold 100,000 shares of Super Micro Computer stock in a transaction dated Wednesday, October 7th. The stock was 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 approximately $15,194,520.12. This trade represents a 22.86% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 transaction of $4,502,000.00. Following the sale, the director owned 337,506 shares of the company's stock, valued at approximately $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. In the last ninety days, insiders sold 400,000 shares of company stock worth $16,442,000. 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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