Super Micro Computer (NASDAQ:SMCI) Shares Down 3.4% - What's Next?

Key Points

• Super Micro Computer shares fell 3.4% to $41.78 in heavy trading, though the stock remains above its 50-day and 200-day moving averages.
• Analysts have a consensus “Hold” rating and an average price target of $42.13, with views ranging from “Strong Buy” to “Sell.”
• The company delivered strong quarterly earnings growth, reporting $1.70 EPS versus a $0.92 estimate and 93.2% year-over-year revenue growth, while its CEO and a director each sold 100,000 shares under pre-arranged trading plans.

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) traded down 3.4% during trading on Monday. The stock traded as low as $40.96 and last traded at $41.78. Approximately 29,314,154 shares changed hands during mid-day trading, a decline of 34% from the average session volume of 44,439,156 shares. The stock had previously closed at $43.26.

Wall Street Analysts Forecast Growth

Several research analysts have commented on the stock. Zacks Research raised shares of Super Micro Computer from a "hold" rating to a "strong-buy" rating in a report on Thursday, August 20th. Bank of America reiterated an "underperform" rating on shares of Super Micro Computer in a research report on Wednesday, August 12th. Sanford C. Bernstein set a $42.00 price target on Super Micro Computer in a research note on Thursday, August 13th. The Goldman Sachs Group restated a "sell" rating and set a $34.00 price target (up from $30.00) on shares of Super Micro Computer in a report on Wednesday, August 12th. Finally, Mizuho set a $35.00 price objective on Super Micro Computer and gave the stock a "neutral" rating in a research note on Wednesday, August 12th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, eleven have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and a consensus price target of $42.13.

Super Micro Computer Stock Down 3.4%

The business's 50 day simple moving average is $35.34 and its 200 day simple moving average is $32.07. The company has a current ratio of 3.87, a quick ratio of 2.07 and a debt-to-equity ratio of 0.65. The firm has a market capitalization of $27.45 billion, a PE ratio of 13.06, a PEG ratio of 0.82 and a beta of 2.00.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last announced its earnings results on Tuesday, August 11th. The company reported $1.70 earnings per share (EPS) for the quarter, beating 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 firm had revenue of $11.12 billion for the quarter, compared to analysts' expectations of $11.60 billion. During the same period in the prior year, the company earned $0.31 EPS. The business'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 research analysts forecast that Super Micro Computer, Inc. will post 4.04 earnings per share for the current year.

Insider Buying and Selling

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

Institutional Trading of Super Micro Computer

Institutional investors have recently bought and sold shares of the stock. QRG Capital Management Inc. increased its position in Super Micro Computer by 17.6% during the second quarter. QRG Capital Management Inc. now owns 90,158 shares of the company's stock valued at $2,644,000 after acquiring an additional 13,476 shares during the last quarter. MCF Advisors LLC lifted its holdings in shares of Super Micro Computer by 22.8% in the 2nd quarter. MCF Advisors LLC now owns 3,667 shares of the company's stock worth $108,000 after acquiring an additional 680 shares during the last quarter. National Pension Service boosted its stake in shares of Super Micro Computer by 191.7% during the 2nd quarter. National Pension Service now owns 99,868 shares of the company's stock worth $2,929,000 after purchasing an additional 65,632 shares during the period. NewEdge Advisors LLC boosted its stake in shares of Super Micro Computer by 183.5% during the 2nd quarter. NewEdge Advisors LLC now owns 158,321 shares of the company's stock worth $4,644,000 after purchasing an additional 102,474 shares during the period. Finally, Baird Financial Group Inc. bought a new position in Super Micro Computer during the 2nd quarter valued at about $292,000. 84.06% of the stock is currently owned by institutional investors.

About Super Micro Computer

Super Micro Computer, Inc, doing business as Supermicro, develops and sells application-optimized server and storage systems. Its product portfolio includes servers, workstations, storage platforms, networking equipment, motherboards, chassis, power supplies and related software and support services.

The company also provides high-performance computing and data center infrastructure, including systems designed for artificial intelligence, machine learning, cloud computing, enterprise applications, telecommunications and edge computing.

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