Super Micro Computer (NASDAQ:SMCI) Shares Down 4.5% Following Insider Selling

Key Points

• Super Micro Computer shares fell 4.5% to about $39.98 after CEO Charles Liang and director Chiu-Chu Liang each sold 100,000 shares for approximately $4.5 million under pre-arranged Rule 10b5-1 trading plans.
• Analyst sentiment is mixed: the stock has an overall “Hold” consensus rating with a $43.07 price target, despite upgrades from Zacks and bullish ratings from Needham and Raymond James.
• The company reported strong quarterly earnings of $1.70 per share, well above the $0.92 estimate, while revenue rose 93.2% year over year to $11.12 billion but fell short of expectations.

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report)'s stock price traded down 4.5% on Monday after an insider sold shares in the company. The stock traded as low as $39.24 and last traded at $39.98. Approximately 25,344,849 shares changed hands during trading, a decline of 42% from the average session volume of 43,766,750 shares. The stock had previously closed at $41.85.

Specifically, CEO Charles Liang sold 100,000 shares of the company's stock in a transaction on 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 owned 337,506 shares of the company's stock, valued at approximately $15,194,520.12. This represents a 22.86% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. 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 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 transaction, the director owned 337,506 shares of the company's stock, valued at approximately $15,194,520.12. This represents a 22.86% 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.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on the stock. Needham & Company LLC reiterated a "buy" rating and issued a $46.00 price objective on shares of Super Micro Computer in a research report on Wednesday, August 12th. Stifel Nicolaus set a $42.00 target price on shares of Super Micro Computer in a report on Wednesday, August 12th. Zacks Research raised shares of Super Micro Computer from a "hold" rating to a "strong-buy" rating in a report on Thursday, August 20th. Raymond James Financial reiterated an "outperform" rating and issued a $48.00 price target on shares of Super Micro Computer in a research report on Wednesday, August 12th. Finally, Sanford C. Bernstein set a $42.00 price target on shares of Super Micro Computer in a research report on Thursday, August 13th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, eleven have issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $43.07.

Key Headlines Impacting Super Micro Computer

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

• Positive Sentiment: Zacks upgraded Super Micro to Rank #1 (Strong Buy), citing improving earnings prospects. The upgrade could support the stock by increasing near-term investor optimism. Super Micro Upgraded to Strong Buy
• Neutral Sentiment: A contractor linked to Super Micro pleaded guilty in a case involving an alleged $2.5 billion illegal AI-chip export scheme. The reports do not indicate that Super Micro itself has been charged, but the connection may keep regulatory, compliance and reputational risks in focus. Super Micro Contractor Pleads Guilty in Chip Case
• Negative Sentiment: CEO Charles Liang sold 100,000 SMCI shares for approximately $4.5 million, while director Chiu-Chu Liang also sold 100,000 shares at an average price of $45.02. The transactions were conducted under a trading plan, which reduces their informational significance, but the sizable insider sales can nevertheless weigh on sentiment and reinforce recent selling pressure. CEO Insider Sale Director Insider Sale

Super Micro Computer Price Performance

The company has a debt-to-equity ratio of 0.65, a current ratio of 3.87 and a quick ratio of 2.07. The firm has a market capitalization of $26.27 billion, a PE ratio of 12.49, a P/E/G ratio of 0.81 and a beta of 2.02. The company has a 50-day moving average price of $38.23 and a 200-day moving average price of $33.01.

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, topping analysts' consensus estimates 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 analysts' expectations of $11.60 billion. During the same quarter last year, the business posted $0.31 EPS. The firm's quarterly 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. Sell-side analysts forecast that Super Micro Computer, Inc. will post 3.94 EPS for the current year.

Institutional Investors Weigh In On Super Micro Computer

Several hedge funds have recently modified their holdings of the company. Dimensional Fund Advisors LP boosted its position in Super Micro Computer by 2.8% during the first quarter. Dimensional Fund Advisors LP now owns 4,082,780 shares of the company's stock worth $92,872,000 after acquiring an additional 111,388 shares during the last quarter. Assenagon Asset Management S.A. grew its stake in 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 acquiring an additional 2,058,588 shares during the period. Swiss National Bank raised its holdings in Super Micro Computer by 7.6% in the 1st quarter. Swiss National Bank now owns 1,576,800 shares of the company's stock valued at $35,904,000 after acquiring an additional 111,100 shares during the last quarter. Hsbc Holdings PLC raised its holdings in Super Micro Computer by 13.7% in the 4th quarter. Hsbc Holdings PLC now owns 1,134,891 shares of the company's stock valued at $33,203,000 after acquiring an additional 137,180 shares during the last quarter. Finally, Principal Financial Group Inc. raised its holdings in Super Micro Computer by 1.3% in the 1st 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 during the last quarter. 84.06% of the stock is owned by institutional investors and hedge funds.

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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