Super Micro Computer (NASDAQ:SMCI) Stock Jumps 2.1% - Should You Buy?

Key Points

• SMCI shares rose 2.1% to $41.92, near the analyst consensus price target of $42.13. Despite recent target increases, analysts maintain a consensus “Hold” rating, with 11 Holds, four Buys, two Sells, and one Strong Buy.
• Super Micro reported strong quarterly earnings of $1.70 per share, beating estimates of $0.92, while revenue grew 93.2% year over year to $11.12 billion but fell short of expectations.
• CEO Charles Liang and director Chiu-Chu Liang each sold 100,000 shares under pre-arranged Rule 10b5-1 plans. Institutional investors own a substantial 84.06% of the company, with several major funds recently increasing their positions.

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report)'s stock price was up 2.1% during mid-day trading on Thursday. The company traded as high as $42.02 and last traded at $41.92. Approximately 26,377,542 shares traded hands during trading, a decline of 40% from the average daily volume of 44,175,227 shares. The stock had previously closed at $41.07.

Analysts Set New Price Targets

Several brokerages recently commented on SMCI. The Goldman Sachs Group reiterated a "sell" rating and set a $34.00 price target (up from $30.00) on shares of Super Micro Computer in a research report on Wednesday, August 12th. Wedbush upped their target price on Super Micro Computer from $34.00 to $40.00 and gave the company a "neutral" rating in a report on Wednesday, August 12th. Barclays set a $39.00 price target on Super Micro Computer and gave the stock an "equal weight" rating in a report on Wednesday, August 12th. Northland Securities set a $36.00 price target on shares of Super Micro Computer in a research report on Wednesday, July 22nd. Finally, Stifel Nicolaus set a $42.00 price objective on shares of 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 issued a Buy rating, eleven have given a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $42.13.

Super Micro Computer Price Performance

The stock has a market cap of $27.54 billion, a PE ratio of 13.10, a P/E/G ratio of 0.79 and a beta of 2.00. 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 company has a fifty day moving average of $36.22 and a 200-day moving average of $32.28.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last issued its quarterly earnings results on Tuesday, August 11th. The company reported $1.70 EPS for the quarter, beating the consensus estimate of $0.92 by $0.78. The company had revenue of $11.12 billion during 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 firm's revenue was up 93.2% compared to the same quarter last year. During the same quarter last year, the company posted $0.31 EPS. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS. Sell-side analysts expect that Super Micro Computer, Inc. will post 3.94 EPS for the current fiscal year.

Insider Activity

In other news, CEO Charles Liang sold 100,000 shares of the business's stock in a transaction dated Thursday, September 3rd. The stock was sold at an average price of $37.19, for a total transaction of $3,719,000.00. Following the completion of the transaction, the chief executive officer directly owned 537,506 shares of the company's stock, valued at approximately $19,989,848.14. The trade was a 15.69% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed 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 company'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 transaction of $3,719,000.00. Following the sale, the director owned 537,506 shares in the company, valued at $19,989,848.14. The trade was a 15.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 16.10% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in SMCI. Norges Bank purchased a new position in Super Micro Computer in the fourth quarter valued at approximately $136,569,000. Dimensional Fund Advisors LP grew its position in shares of 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. raised its stake in Super Micro Computer by 1,770.4% during 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 in the last quarter. Swiss National Bank lifted its position in Super Micro Computer by 7.6% in the first 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. Finally, Hsbc Holdings PLC boosted its stake in Super Micro Computer by 13.7% in the fourth 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 in 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.