Super Micro Computer (NASDAQ:SMCI) Trading Up 2.4% - Should You Buy?

Key Points

• Super Micro Computer shares rose 2.4% to $37.87, with trading volume below its average. The stock’s market capitalization is approximately $22.78 billion, and its beta of 2.00 indicates relatively high volatility.
• Analyst sentiment remains mixed, with an overall “Hold” rating and a consensus price target of $42.13. Recent targets range from $36 to $48, including Wedbush’s increase to $40 while maintaining a neutral rating.
• The company delivered a strong quarterly earnings beat, reporting $1.70 EPS versus $0.92 expected, while revenue increased 93.2% year over year to $11.12 billion but fell short of estimates. Institutional investors own 84.06% of the stock, with several major funds recently increasing their positions.

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) were up 2.4% during trading on Thursday . The stock traded as high as $38.22 and last traded at $37.87. Approximately 34,158,211 shares were traded during trading, a decline of 24% from the average session volume of 44,863,086 shares. The stock had previously closed at $37.00.

Analysts Set New Price Targets

A number of research analysts recently weighed in on the stock. Wedbush lifted their target price on shares of Super Micro Computer from $34.00 to $40.00 and gave the company a "neutral" rating in a research note on Wednesday, August 12th. Sanford C. Bernstein set a $42.00 price target on Super Micro Computer in a research note on Thursday, August 13th. Raymond James Financial reissued an "outperform" rating and set a $48.00 price target on shares of Super Micro Computer in a report on Wednesday, August 12th. Northland Securities set a $36.00 price objective on Super Micro Computer in a research report on Wednesday, July 22nd. Finally, CJS Securities raised Super Micro Computer from a "market underperform" rating to a "market perform" rating in a research note on Wednesday, May 6th. One 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 stock. According to data from MarketBeat.com, the company has an average rating of "Hold" and a consensus target price of $42.13.

Super Micro Computer Trading Up 2.4%

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 stock's 50-day moving average is $31.34 and its two-hundred day moving average is $31.12. The stock has a market cap of $22.78 billion, a P/E ratio of 11.83, a price-to-earnings-growth ratio of 0.69 and a beta of 2.00.

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, beating analysts' consensus estimates of $0.92 by $0.78. Super Micro Computer had a net margin of 5.71% and a return on equity of 27.83%. The company had revenue of $11.12 billion for the quarter, compared to the consensus estimate of $11.60 billion. During the same period in the previous year, the firm posted $0.31 EPS. Super Micro Computer's revenue for the quarter 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. Equities research analysts anticipate that Super Micro Computer, Inc. will post 4.04 EPS for the current year.

Hedge Funds Weigh In On Super Micro Computer

Several institutional investors have recently added to or reduced their stakes in the company. California State Teachers Retirement System boosted its position in shares of Super Micro Computer by 2,984.2% during 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 acquiring an additional 24,258,827 shares during the last quarter. Norges Bank bought a new stake in Super Micro Computer in the fourth quarter worth $136,569,000. Assenagon Asset Management S.A. increased its position in Super Micro Computer by 1,770.4% in the second quarter. Assenagon Asset Management S.A. now owns 2,174,863 shares of the company's stock worth $63,789,000 after purchasing an additional 2,058,588 shares during the last quarter. 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 valued at $291,347,000 after purchasing an additional 1,738,749 shares in the last quarter. Finally, Amundi raised its stake in Super Micro Computer by 188.8% during the fourth quarter. Amundi now owns 2,421,891 shares of the company's stock valued at $70,889,000 after purchasing an additional 1,583,229 shares in 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 (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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