Super Micro Computer (NASDAQ:SMCI) Shares Down 2.1% Following Insider Selling

Key Points

• Super Micro Computer shares fell 2.1% to $41.86 after CEO Charles Liang and director Chiu-Chu Liang each sold 100,000 shares at an average price of $45.02. Both transactions were executed under pre-arranged Rule 10b5-1 trading plans.
• Analysts maintain a cautious outlook, with the stock carrying a consensus “Hold” rating and an average price target of $43.07.
• The company reported strong momentum, including 93.2% year-over-year revenue growth and a reported $60 billion-plus order pipeline, but investors remain concerned that lower-margin GPU system sales could limit profitability.

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report)'s share price dropped 2.1% during mid-day trading on Friday after an insider sold shares in the company. The company traded as low as $40.63 and last traded at $41.86. 27,181,782 shares traded hands during mid-day trading, a decline of 38% from the average daily volume of 43,860,941 shares. The stock had previously closed at $42.77.

Specifically, 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 sale, the chief executive officer owned 337,506 shares in the company, valued at approximately $15,194,520.12. The trade was a 22.86% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, 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 the 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 completion of the transaction, the director directly owned 337,506 shares in the company, valued at $15,194,520.12. This trade represents 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.

Wall Street Analysts Forecast Growth

SMCI has been the subject of several research analyst reports. Citigroup restated a "neutral" rating and issued a $45.00 price objective (up from $39.00) on shares of Super Micro Computer in a research note on Thursday. Northland Securities set a $36.00 target price on Super Micro Computer in a report on Wednesday, July 22nd. Wolfe Research started coverage on Super Micro Computer in a research report on Thursday, June 11th. They issued a "peer perform" rating for the company. 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. Finally, Stifel Nicolaus set a $42.00 price target on 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 given a Buy rating, eleven have given a Hold rating and two have assigned a Sell rating to the company's stock. According to data from MarketBeat, Super Micro Computer presently has a consensus rating of "Hold" and an average target price of $43.07.

Trending Headlines about Super Micro Computer

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

• Positive Sentiment: Supermicro appointed Shesha Krishnapura, a 35-year Intel veteran, as an independent director. His operational and technology experience could strengthen the board as the company expands its AI infrastructure business, while Judy Lin is retiring from the board. Supermicro Appoints Shesha Krishnapura to Board of Directors
• Positive Sentiment: Super Micro entered fiscal 2027 with an order pipeline exceeding $60 billion, supported by demand for AI systems and increasing enterprise adoption. This provides a potentially strong revenue-growth outlook if the company converts the pipeline into shipments. Can Super Micro Computer Sustain Its AI Capex Momentum in 2027?
• Positive Sentiment: Zacks added SMCI to its Rank #1, or “Strong Buy,” list and its value-stock list, potentially supporting investor interest given the company’s relatively low earnings valuation. New Strong Buy Stocks for October 8th
• Neutral Sentiment: Analyst commentary continues to focus on Super Micro alongside other major technology companies, keeping attention on the company’s AI-driven growth prospects and execution. Analysts Offer Insights on Technology Companies
• Negative Sentiment: The key unresolved issue is profitability: management has indicated that high-volume GPU systems generally carry lower margins than Super Micro’s other products. Investors therefore remain concerned that rapid sales growth may not translate into comparable earnings growth. One Unsettled Question Sits Under Super Micro Computer Stock
• Negative Sentiment: Recent weakness was attributed to profit-taking after a server-sector rally, suggesting some investors are locking in gains rather than reacting to a new deterioration in the company’s fundamentals. Super Micro Drops as Profit Taking Unwinds Server Rally

Super Micro Computer Stock Performance

The stock has a market cap of $27.49 billion, a PE ratio of 13.08, a price-to-earnings-growth ratio of 0.87 and a beta of 2.02. The stock has a fifty day moving average of $37.96 and a 200-day moving average of $32.87. The company has a quick ratio of 2.07, a current ratio of 3.87 and a debt-to-equity ratio of 0.65.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last posted its quarterly earnings data on Tuesday, August 11th. The company reported $1.70 EPS for the quarter, beating 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 during the quarter, compared to the consensus estimate of $11.60 billion. During the same period in the prior year, the business earned $0.31 EPS. The firm's 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. On average, equities analysts forecast that Super Micro Computer, Inc. will post 3.94 EPS for the current year.

Institutional Trading of Super Micro Computer

Hedge funds have recently made changes to their positions in the company. GAMMA Investing LLC boosted its holdings in Super Micro Computer by 65.0% in the 3rd quarter. GAMMA Investing LLC now owns 17,657 shares of the company's stock valued at $725,000 after purchasing an additional 6,953 shares in the last quarter. Farther Finance Advisors LLC raised its stake in shares of Super Micro Computer by 137.8% during the 3rd quarter. Farther Finance Advisors LLC now owns 19,357 shares of the company's stock worth $795,000 after buying an additional 11,217 shares in the last quarter. MassMutual Private Wealth & Trust FSB raised its stake in shares of Super Micro Computer by 117.4% during the 3rd quarter. MassMutual Private Wealth & Trust FSB now owns 2,187 shares of the company's stock worth $90,000 after buying an additional 1,181 shares in the last quarter. Versant Capital Management Inc lifted its holdings in shares of Super Micro Computer by 321.7% in the 3rd quarter. Versant Capital Management Inc now owns 2,391 shares of the company's stock valued at $98,000 after buying an additional 1,824 shares during the period. Finally, QRG Capital Management Inc. boosted its stake in shares of Super Micro Computer by 17.6% in the second quarter. QRG Capital Management Inc. now owns 90,158 shares of the company's stock valued at $2,644,000 after buying an additional 13,476 shares in the last quarter. Institutional investors and hedge funds own 84.06% 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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