Super Micro Computer (NASDAQ:SMCI) Shares Down 3.9% - Here's Why

Key Points

• Super Micro Computer shares fell 3.9% to $34.43, with roughly 24.4 million shares traded—44% below average volume.
• Analysts maintain a consensus “Hold” rating with an average price target of $43.07; targets range from $39 to $46.
• The company reported strong quarterly earnings of $1.70 per share, beating estimates, while revenue rose 93.2% year over year but came in below expectations. Separately, the CEO and a director each sold 100,000 shares under pre-arranged trading plans.

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) shares traded down 3.9% during trading on Thursday. The company traded as low as $34.12 and last traded at $34.43. Approximately 24,384,690 shares traded hands during mid-day trading, a decline of 44% from the average daily volume of 43,330,012 shares. The stock had previously closed at $35.81.

Analysts Set New Price Targets

Several equities research analysts have recently commented on 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. Needham & Company LLC restated a "buy" rating and issued a $46.00 price target on shares of Super Micro Computer in a research report on Wednesday, August 12th. Citigroup reaffirmed a "neutral" rating and set a $45.00 price target (up from $39.00) on shares of Super Micro Computer in a research note on Thursday, October 8th. Mizuho boosted their price objective on shares of Super Micro Computer from $35.00 to $43.00 and gave the stock a "neutral" rating in a research report on Tuesday, October 6th. Finally, Sanford C. Bernstein set a $42.00 price objective on shares of Super Micro Computer in a research report on Thursday, August 13th. Four research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, Super Micro Computer presently has a consensus rating of "Hold" and an average price target of $43.07.

Super Micro Computer Stock Performance

The company has a debt-to-equity ratio of 0.65, a quick ratio of 2.07 and a current ratio of 3.87. The stock has a fifty day simple moving average of $38.34 and a two-hundred day simple moving average of $32.64. The stock has a market cap of $22.62 billion, a PE ratio of 10.76, a PEG ratio of 0.51 and a beta of 2.02.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last released its quarterly earnings data on Tuesday, August 11th. The company reported $1.70 earnings per share for the quarter, topping analysts' consensus estimates of $0.92 by $0.78. The business had revenue of $11.12 billion for the quarter, compared to analysts' expectations of $11.60 billion. Super Micro Computer had a net margin of 5.71% and a return on equity of 27.83%. The company's revenue for the quarter was up 93.2% compared to the same quarter last year. During the same quarter last year, the company earned $0.31 EPS. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS. Equities analysts anticipate that Super Micro Computer, Inc. will post 4.17 EPS for the current fiscal year.

Insider Activity at Super Micro Computer

In related news, Director Chiu-Chu Liang sold 100,000 shares of the company's stock in a transaction on Wednesday, October 7th. The shares were sold at an average price of $45.02, for a total value of $4,502,000.00. Following the completion of the sale, the director directly owned 337,506 shares in the company, valued at approximately $15,194,520.12. This represents a 22.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. 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 dated Wednesday, October 7th. The stock was sold at an average price of $45.02, for a total value of $4,502,000.00. Following the sale, the chief executive officer directly owned 337,506 shares of the company's stock, valued at $15,194,520.12. This 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. In the last ninety days, insiders have sold 400,000 shares of company stock worth $16,442,000. Insiders own 16.10% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of SMCI. Dimensional Fund Advisors LP increased its stake in Super Micro Computer by 2.8% in 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 last quarter. Assenagon Asset Management S.A. boosted its stake in shares of Super Micro Computer by 1,770.4% in 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 during the last quarter. Swiss National Bank boosted its stake in shares of Super Micro Computer by 7.6% in 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 during the last quarter. Sumitomo Mitsui Trust Group Inc. grew its holdings in shares of Super Micro Computer by 1.8% in the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,158,768 shares of the company's stock valued at $47,591,000 after acquiring an additional 19,942 shares in the last quarter. Finally, Principal Financial Group Inc. grew its holdings in shares of Super Micro Computer by 1.3% in the first quarter. Principal Financial Group Inc. now owns 565,746 shares of the company's stock valued at $12,882,000 after acquiring an additional 7,373 shares in the last quarter. Institutional investors and hedge funds own 84.06% of the company's stock.

Super Micro Computer Company Profile

Super Micro Computer, Inc develops and sells high-performance server and storage systems for data centers, cloud computing, enterprise IT, telecommunications, and other demanding computing environments. The company offers application-optimized servers, workstations, blade and rack systems, storage solutions, networking products, and related infrastructure.

Supermicro also provides systems designed for artificial intelligence, machine learning, accelerated computing, and other workloads that use graphics processing units and specialized processors.

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