Super Micro Computer (NASDAQ:SMCI) Stock Jumps 9.5% After Insider Buying Activity

Key Points

• Super Micro shares rose 9.5% to $30.43 after director Scott Angel bought 1,715 shares for about $49,941, increasing his ownership by 24.31%.
• Analysts’ consensus rating is Hold, with an average price target of $41.29; ratings include four Buys, 12 Holds and three Sells.
• The company reported quarterly EPS of $1.81 versus a $1.28 estimate and revenue of $19.95 billion versus $16.29 billion expected; revenue grew 297.5% year over year.

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) shares were up 9.5% on Wednesday following insider buying activity. The company traded as high as $31.19 and last traded at $30.43. Approximately 40,585,090 shares were traded during mid-day trading, a decline of 7% from the average session volume of 43,659,621 shares. The stock had previously closed at $27.79.

Specifically, Director Scott Angel purchased 1,715 shares of the business's stock in a transaction on Friday, November 6th. The shares were bought at an average price of $29.12 per share, for a total transaction of $49,940.80. Following the acquisition, the director directly owned 8,770 shares in the company, valued at $255,382.40. This trade represents a 24.31% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which can be accessed through the SEC website.

Analysts Set New Price Targets

SMCI has been the topic of a number of analyst reports. The Goldman Sachs Group reaffirmed a "sell" rating and issued a $34.00 price target (up from $30.00) on shares of Super Micro Computer in a research report on Wednesday, August 12th. Mizuho boosted their price objective on Super Micro Computer from $35.00 to $43.00 and gave the stock a "neutral" rating in a research report on Tuesday, October 6th. Wedbush upped their target price on shares of Super Micro Computer from $34.00 to $40.00 and gave the stock a "neutral" rating in a research note on Wednesday, August 12th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Super Micro Computer in a report on Monday, September 21st. Finally, Northland Securities set a $36.00 target price on shares of Super Micro Computer in a report on Wednesday, July 22nd. Four equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and three have issued a Sell rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Hold" and a consensus target price of $41.29.

Super Micro Computer News Summary

Here's some of the latest news about SMCI:

• Positive Sentiment: Super Micro says its H15 server portfolio, powered by AMD’s 6th Gen EPYC processors, is now shipping. The systems target AI, cloud and high-performance computing workloads; the company touts higher core density and bandwidth, plus benchmark records. Article: Supermicro Now Shipping Next-Generation Servers
• Positive Sentiment: CoreWeave’s stronger results and improved outlook helped lift sentiment toward Super Micro, which supplies AI servers to the cloud-computing company. Article: Super Micro stock jumps as AMD server shipments and CoreWeave lift shares
• Negative Sentiment: The sales surge came with negative operating cash flow of $434 million, as receivables and inventory absorbed cash. Investors may question how efficiently rapid growth converts into cash and whether working-capital demands will persist. Article: Super Micro Computer Stocks Fall as Cash Drain Shadows Fourfold Sales Jump

Super Micro Computer Price Performance

The stock has a fifty day simple moving average of $37.08 and a 200-day simple moving average of $32.62. The company has a market capitalization of $20.06 billion, a PE ratio of 6.49, a P/E/G ratio of 0.41 and a beta of 2.17. The company has a current ratio of 3.02, a quick ratio of 1.66 and a debt-to-equity ratio of 0.56.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last posted its earnings results on Tuesday, November 3rd. The company reported $1.81 earnings per share for the quarter, topping the consensus estimate of $1.28 by $0.53. The firm had revenue of $19.95 billion during the quarter, compared to analysts' expectations of $16.29 billion. Super Micro Computer had a return on equity of 38.97% and a net margin of 6.77%. The firm's revenue was up 297.5% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.35 earnings per share. Equities analysts anticipate that Super Micro Computer, Inc. will post 4.52 earnings per share for the current year.

Institutional Investors Weigh In On Super Micro Computer

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Advisors Asset Management Inc. purchased a new position in shares of Super Micro Computer during the third quarter worth about $412,000. Edmond DE Rothschild Holding S.A. acquired a new stake in shares of Super Micro Computer in the 3rd quarter valued at about $25,000. Private Wealth Asset Management LLC boosted its position in shares of Super Micro Computer by 448.4% in the 3rd quarter. Private Wealth Asset Management LLC now owns 13,161 shares of the company's stock valued at $541,000 after purchasing an additional 10,761 shares during the period. Private Advisor Group LLC boosted its position in shares of Super Micro Computer by 1,159.1% in the 3rd quarter. Private Advisor Group LLC now owns 199,303 shares of the company's stock valued at $8,185,000 after purchasing an additional 183,474 shares during the period. Finally, Independent Advisor Alliance boosted its position in shares of Super Micro Computer by 12.9% in the 3rd quarter. Independent Advisor Alliance now owns 17,668 shares of the company's stock valued at $716,000 after purchasing an additional 2,021 shares during the period. 84.06% of the stock is owned by hedge funds and other institutional investors.

Super Micro Computer Company Profile

Super Micro Computer, Inc. designs and sells server and storage systems, networking equipment, and related software and services. Its offerings include systems for data centers, cloud computing, enterprise applications, high-performance computing, artificial intelligence, and edge computing. The company emphasizes application-optimized solutions, including integrated rack-scale systems that combine computing, storage, networking, and management tools. It also provides system configuration, deployment, and support services.

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