Super Micro Computer (NASDAQ:SMCI) Stock Price Down 3.6% - Here's Why

Key Points

• Super Micro Computer shares fell 3.6% to $37.08 in Friday’s midday trading, with 28.9 million shares changing hands—36% below average volume.
• Analyst sentiment remains mixed: the stock has a consensus “Hold” rating and an average price target of $42.13, despite Rosenblatt raising its target to $51 and Zacks upgrading the shares to “Strong Buy.”
• The company beat quarterly EPS expectations, reporting $1.70 versus the $0.92 consensus, while revenue rose 93.2% year over year to $11.12 billion but came in below estimates.

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) dropped 3.6% during mid-day trading on Friday . The company traded as low as $36.87 and last traded at $37.08. 28,912,233 shares changed hands during trading, a decline of 36% from the average daily volume of 45,239,188 shares. The stock had previously closed at $38.46.

Wall Street Analyst Weigh In

Several equities analysts recently commented on the stock. Rosenblatt Securities increased their target price on shares of Super Micro Computer from $45.00 to $51.00 and gave the company a "buy" rating in a report on Wednesday, August 12th. Barclays set a $39.00 price objective on Super Micro Computer and gave the stock an "equal weight" rating in a research note on Wednesday, August 12th. Zacks Research raised shares of Super Micro Computer from a "hold" rating to a "strong-buy" rating in a research note on Thursday, August 20th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Super Micro Computer in a research report on Wednesday, June 24th. Finally, Citigroup increased their price objective on Super Micro Computer from $33.00 to $39.00 and gave the company a "neutral" rating in a report on Wednesday, August 12th. One research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, eleven have issued a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $42.13.

Super Micro Computer Stock Down 3.6%

The business has a 50-day simple moving average of $31.01 and a two-hundred day simple moving average of $30.99. The company has a market capitalization of $22.30 billion, a price-to-earnings ratio of 11.59, a PEG ratio of 0.82 and a beta of 1.95. The company has a debt-to-equity ratio of 0.65, a quick ratio of 2.07 and a current ratio of 3.87.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last issued 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 firm had revenue of $11.12 billion for the quarter, compared to analyst estimates of $11.60 billion. Super Micro Computer had a return on equity of 27.83% and a net margin of 5.71%.The firm's quarterly revenue was up 93.2% on a year-over-year basis. During the same period last year, the company earned $0.31 EPS. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS. As a group, equities analysts predict that Super Micro Computer, Inc. will post 4.04 EPS for the current year.

Institutional Investors Weigh In On Super Micro Computer

Institutional investors have recently added to or reduced their stakes in the company. California State Teachers Retirement System increased its stake in shares of Super Micro Computer by 2,984.2% in the 2nd quarter. California State Teachers Retirement System now owns 25,071,724 shares of the company's stock valued at $735,354,000 after buying an additional 24,258,827 shares during the period. Geode Capital Management LLC increased its position in shares of Super Micro Computer by 0.3% in the fourth quarter. Geode Capital Management LLC now owns 13,808,499 shares of the company's stock worth $402,627,000 after purchasing an additional 41,314 shares during the period. Invesco Ltd. raised its stake in Super Micro Computer by 21.2% during the fourth quarter. Invesco Ltd. now owns 9,953,780 shares of the company's stock worth $291,347,000 after acquiring an additional 1,738,749 shares in the last quarter. Disciplined Growth Investors Inc. MN lifted its holdings in Super Micro Computer by 16.5% during the 2nd quarter. Disciplined Growth Investors Inc. MN now owns 9,730,773 shares of the company's stock worth $476,905,000 after buying an additional 1,381,046 shares during the period. Finally, Norges Bank bought a new stake in Super Micro Computer during the fourth quarter valued at $136,569,000. 84.06% of the stock is owned by institutional investors and hedge funds.

Super Micro Computer Company Profile

Super Micro Computer, Inc (Supermicro) is a technology company that designs, develops and manufactures high-performance server, storage and networking solutions for enterprise, cloud, data center, high performance computing (HPC) and edge computing customers. The company's product portfolio includes rackmount and blade servers, storage subsystems, motherboards, chassis, power supplies and networking components, with an emphasis on high-density, energy-efficient configurations and platforms optimized for GPU-accelerated workloads and artificial intelligence applications.

Headquartered in San Jose, California, Supermicro combines in-house engineering with a global manufacturing and distribution footprint to deliver configurable, application-specific systems.

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