Super Micro Computer (NASDAQ:SMCI) Stock Crosses Below 200-Day Moving Average - Should You Sell?

Key Points

• Super Micro Computer shares fell below their 200-day moving average, trading as low as $30.27 and last changing hands at $30.44 amid heavy volume. The stock was down 7.6%, with its 50-day moving average at $38.10.
• Analyst sentiment remains mixed: the consensus rating is “Hold” with an average price target of $43.07, while targets range from Goldman Sachs’ $34 “Sell” view to Rosenblatt Securities’ $51 “Buy” target.
• The company reported strong quarterly earnings of $1.70 per share, well above the $0.92 estimate, and revenue grew 93.2% year over year despite missing revenue expectations. However, insiders sold 400,000 shares worth $16.44 million over the past three months.

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) passed below its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $32.69 and traded as low as $30.27. Super Micro Computer shares last traded at $30.44, with a volume of 40,708,231 shares trading hands.

Analyst Upgrades and Downgrades

Several research firms recently commented on SMCI. The Goldman Sachs Group reissued a "sell" rating and set a $34.00 target price (up from $30.00) on shares of Super Micro Computer in a research note on Wednesday, August 12th. Barclays set a $39.00 price target on Super Micro Computer and gave the company an "equal weight" rating in a research report on Wednesday, August 12th. Wedbush increased their price target on Super Micro Computer from $34.00 to $40.00 and gave the company a "neutral" rating in a research report on Wednesday, August 12th. Rosenblatt Securities reiterated a "buy" rating and issued a $51.00 price objective on shares of Super Micro Computer in a research note on Friday, October 16th. Finally, Sanford C. Bernstein set a $42.00 price objective on Super Micro Computer in a research report on Thursday, August 13th. Four investment analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have assigned a Sell rating to the company's stock. According to MarketBeat.com, Super Micro Computer has a consensus rating of "Hold" and an average price target of $43.07.

Super Micro Computer Trading Down 7.6%

The stock has a market cap of $20.00 billion, a price-to-earnings ratio of 9.51, a P/E/G ratio of 0.56 and a beta of 2.02. The business's 50 day moving average is $38.10 and its 200 day moving average is $32.69. The company has a debt-to-equity ratio of 0.65, a current ratio of 3.87 and a quick ratio of 2.07.

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

Insider Activity

In related news, Director Chiu-Chu Liang sold 100,000 shares of the business's stock in a transaction that occurred on Wednesday, October 7th. The stock was sold at an average price of $45.02, for a total transaction of $4,502,000.00. Following the completion of the sale, the director owned 337,506 shares in the company, valued at $15,194,520.12. The trade was 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 available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Liang sold 100,000 shares of the company'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 value of $4,502,000.00. Following the completion of the transaction, the chief executive officer directly owned 337,506 shares of the company's stock, valued at $15,194,520.12. This trade represents a 22.86% decrease in their ownership of the stock. 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 have sold a total of 400,000 shares of company stock worth $16,442,000 in the last three months. Corporate insiders own 16.10% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Heritage Family Offices LLP purchased a new position in shares of Super Micro Computer during the third quarter worth about $43,000. Kestra Advisory Services LLC increased its position in Super Micro Computer by 15.2% in the 3rd quarter. Kestra Advisory Services LLC now owns 36,472 shares of the company's stock valued at $1,498,000 after acquiring an additional 4,799 shares during the period. Quest 10 Wealth Builders Inc. raised its stake in Super Micro Computer by 235.2% during the 3rd quarter. Quest 10 Wealth Builders Inc. now owns 600 shares of the company's stock valued at $25,000 after acquiring an additional 421 shares during the last quarter. Commonwealth Equity Services LLC raised its stake in Super Micro Computer by 18.2% during the 3rd quarter. Commonwealth Equity Services LLC now owns 257,243 shares of the company's stock valued at $10,565,000 after acquiring an additional 39,587 shares during the last quarter. Finally, Compass Financial Management LLC raised its stake in Super Micro Computer by 182.3% during the 3rd quarter. Compass Financial Management LLC now owns 1,705 shares of the company's stock valued at $70,000 after acquiring an additional 1,101 shares during the last quarter. Hedge funds and other institutional investors own 84.06% of the company's stock.

About Super Micro Computer

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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