Super Micro Computer (NASDAQ:SMCI) Shares Climb 4.2% - Still a Buy?

Key Points

• SMCI shares rose 4.2% to $43.69 in midday trading, above the consensus analyst price target of $42.13. Despite bullish ratings from some firms, the overall analyst consensus remains “Hold,” with targets ranging from $34 to $46.
• Super Micro reported quarterly EPS of $1.70, beating estimates of $0.92, while revenue increased 93.2% year over year to $11.12 billion but fell short of the $11.60 billion consensus forecast.
• CEO Charles Liang and director Chiu-Chu Liang each sold 100,000 shares under pre-arranged Rule 10b5-1 trading plans; insiders retain a 16.1% stake, while institutional investors own 84.06% of the stock.

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) rose 4.2% during mid-day trading on Friday. The company traded as high as $44.59 and last traded at $43.69. 42,753,539 shares changed hands during mid-day trading, a decline of 3% from the average daily volume of 44,183,992 shares. The stock had previously closed at $41.92.

Analysts Set New Price Targets

Several brokerages recently weighed in on SMCI. Sanford C. Bernstein set a $42.00 target price on Super Micro Computer in a research report on Thursday, August 13th. Wolfe Research assumed coverage on shares of Super Micro Computer in a research report on Thursday, June 11th. They issued a "peer perform" rating for the company. The Goldman Sachs Group reaffirmed a "sell" rating and set a $34.00 price target (up from $30.00) on shares of Super Micro Computer in a research note on Wednesday, August 12th. Needham & Company LLC reaffirmed a "buy" rating and issued a $46.00 target price on shares of Super Micro Computer in a research report on Wednesday, August 12th. Finally, Barclays set a $39.00 price target on Super Micro Computer and gave the stock an "equal weight" rating in a research note on Wednesday, August 12th. One equities research 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 issued a Sell rating to the company. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $42.13.

Super Micro Computer Stock Up 4.2%

The firm has a market cap of $28.70 billion, a price-to-earnings ratio of 13.65, a price-to-earnings-growth ratio of 0.79 and a beta of 2.02. The stock has a 50-day moving average of $36.43 and a 200-day moving average of $32.36. 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 (NASDAQ:SMCI - Get Free Report) last issued its earnings results on Tuesday, August 11th. The company reported $1.70 earnings per share for the quarter, topping the consensus estimate 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 for the quarter, compared to analyst estimates of $11.60 billion. During the same period last year, the company earned $0.31 earnings per share. The firm'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. As a group, sell-side analysts forecast that Super Micro Computer, Inc. will post 3.94 EPS for the current fiscal year.

Insider Transactions at Super Micro Computer

In other Super Micro Computer news, CEO Charles Liang sold 100,000 shares of the business's stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $37.19, for a total transaction of $3,719,000.00. Following the completion of the transaction, the chief executive officer directly owned 537,506 shares of the company's stock, valued at $19,989,848.14. The trade was a 15.69% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Chiu-Chu Liang sold 100,000 shares of the firm's stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $37.19, for a total transaction of $3,719,000.00. Following the completion of the sale, the director owned 537,506 shares in the company, valued at $19,989,848.14. The trade was a 15.69% 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 own 16.10% of the company's stock.

Institutional Trading of Super Micro Computer

Large investors have recently added to or reduced their stakes in the business. Norges Bank bought a new stake in shares of Super Micro Computer during the fourth quarter valued at about $136,569,000. Dimensional Fund Advisors LP increased its stake in Super Micro Computer by 2.8% during the 1st quarter. Dimensional Fund Advisors LP now owns 4,082,780 shares of the company's stock valued at $92,872,000 after buying an additional 111,388 shares during the period. Assenagon Asset Management S.A. raised its position in shares of Super Micro Computer by 1,770.4% during the 2nd quarter. Assenagon Asset Management S.A. now owns 2,174,863 shares of the company's stock worth $63,789,000 after buying an additional 2,058,588 shares in the last quarter. Swiss National Bank raised its position in shares of Super Micro Computer by 7.6% during the 1st 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. Finally, Hsbc Holdings PLC raised its position in shares of Super Micro Computer by 13.7% during the 4th 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. 84.06% of the stock is currently owned by institutional investors and hedge funds.

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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