Super Micro Computer (NASDAQ:SMCI) Trading Up 5.4% - Time to Buy?

Key Points

• Super Micro Computer shares rose 5.4% to $41.20 on Monday, with trading volume slightly above average. The stock’s market capitalization is approximately $27.1 billion.
• Analysts remain cautious overall, with an average rating of “Hold” and a $42.13 price target, despite some bullish targets as high as $51.00.
• The company exceeded quarterly EPS expectations, reporting $1.70 versus the $0.92 consensus, while revenue grew 93.2% year over year to $11.12 billion. However, the CEO and a director each sold 100,000 shares under pre-arranged Rule 10b5-1 plans.

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report)'s share price rose 5.4% on Monday . The company traded as high as $41.72 and last traded at $41.20. 47,666,254 shares were traded during trading, an increase of 7% from the average session volume of 44,628,926 shares. The stock had previously closed at $39.09.

Wall Street Analysts Forecast Growth

SMCI has been the subject of a number of analyst reports. Raymond James Financial restated an "outperform" rating and set a $48.00 price objective on shares of Super Micro Computer in a research report on Wednesday, August 12th. Rosenblatt Securities boosted their price target 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. Northland Securities set a $36.00 price target on shares of Super Micro Computer in a research report on Wednesday, July 22nd. Mizuho set a $35.00 price objective on shares of Super Micro Computer and gave the stock a "neutral" rating in a report on Wednesday, August 12th. Finally, Sanford C. Bernstein set a $42.00 price objective on shares of Super Micro Computer in a research report on Thursday, August 13th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, eleven have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $42.13.

Super Micro Computer Stock Up 5.4%

The company has a debt-to-equity ratio of 0.65, a quick ratio of 2.07 and a current ratio of 3.87. The firm has a 50 day simple moving average of $33.78 and a two-hundred day simple moving average of $31.72. The stock has a market cap of $27.07 billion, a P/E ratio of 12.88, a P/E/G ratio of 0.74 and a beta of 2.00.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last released its quarterly earnings results on Tuesday, August 11th. The company reported $1.70 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.92 by $0.78. Super Micro Computer had a return on equity of 27.83% and a net margin of 5.71%.The company had revenue of $11.12 billion during the quarter, compared to analysts' expectations of $11.60 billion. During the same quarter in the prior year, the business posted $0.31 earnings per share. The company'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 predict that Super Micro Computer, Inc. will post 4.04 earnings per share for the current year.

Insider Activity

In other news, Director Chiu-Chu Liang sold 100,000 shares of the stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $37.19, for a total value of $3,719,000.00. Following the completion of the transaction, the director directly owned 537,506 shares in the company, valued at $19,989,848.14. This trade represents a 15.69% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Liang sold 100,000 shares of the firm's stock in a transaction that occurred on Thursday, September 3rd. The shares were sold at an average price of $37.19, for a total transaction of $3,719,000.00. Following the transaction, the chief executive officer owned 537,506 shares in the company, valued at $19,989,848.14. This represents a 15.69% decrease in their position. 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. 16.10% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Super Micro Computer

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Norges Bank bought a new stake in Super Micro Computer during the fourth quarter worth approximately $136,569,000. Assenagon Asset Management S.A. increased its holdings in shares of 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 valued at $63,789,000 after buying an additional 2,058,588 shares in the last quarter. MUFG Securities EMEA plc lifted its position in shares of Super Micro Computer by 10,842.9% during the 4th quarter. MUFG Securities EMEA plc now owns 1,050,076 shares of the company's stock valued at $30,736,000 after acquiring an additional 1,040,480 shares during the last quarter. Ardmore Road Asset Management LP acquired a new stake in shares of Super Micro Computer during the 1st quarter valued at $11,954,000. Finally, Diversify Wealth Management LLC bought a new stake in shares of Super Micro Computer during the 1st quarter worth $7,455,000. 84.06% of the stock is owned by institutional investors.

Super Micro Computer Company Profile

Super Micro Computer, Inc, doing business as Supermicro, develops and sells application-optimized server and storage systems. Its product portfolio includes servers, workstations, storage platforms, networking equipment, motherboards, chassis, power supplies and related software and support services.

The company also provides high-performance computing and data center infrastructure, including systems designed for artificial intelligence, machine learning, cloud computing, enterprise applications, telecommunications and edge computing.

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.