Super Micro Computer (NASDAQ:SMCI) Trading Up 9.5% - Here's What Happened

Key Points

• Super Micro Computer shares jumped 9.5% to $40.35, with trading volume 39% above the average session volume.
• Analyst sentiment remains mixed, with a consensus “Hold” rating and an average price target of $42.13; recent targets range from $39 to $46.
• The company reported quarterly EPS of $1.70, well above the $0.92 consensus estimate, while revenue rose 93.2% year over year to $11.12 billion, although it fell short of expectations.

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) traded up 9.5% during trading on Thursday . The company traded as high as $41.01 and last traded at $40.35. 62,078,247 shares were traded during mid-day trading, an increase of 39% from the average session volume of 44,593,805 shares. The stock had previously closed at $36.85.

Wall Street Analyst Weigh In

SMCI has been the subject of several recent analyst reports. Wolfe Research began coverage on shares of Super Micro Computer in a research note on Thursday, June 11th. They issued a "peer perform" rating for the company. Stifel Nicolaus set a $42.00 price target on Super Micro Computer in a research report on Wednesday, August 12th. Needham & Company LLC reaffirmed a "buy" rating and issued a $46.00 price objective on shares of Super Micro Computer in a research report on Wednesday, August 12th. Citigroup lifted their target price on Super Micro Computer from $33.00 to $39.00 and gave the stock a "neutral" rating in a research note on Wednesday, August 12th. Finally, Wedbush boosted their target price on Super Micro Computer from $34.00 to $40.00 and gave the stock a "neutral" rating in a 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 issued a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and a consensus price target of $42.13.

Super Micro Computer Stock Performance

The stock has a market cap of $26.51 billion, a price-to-earnings ratio of 12.61, a P/E/G ratio of 0.67 and a beta of 2.00. The company has a quick ratio of 2.07, a current ratio of 3.87 and a debt-to-equity ratio of 0.65. The company has a 50 day simple moving average of $33.32 and a 200 day simple moving average of $31.61.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last posted its quarterly earnings results on Tuesday, August 11th. The company reported $1.70 earnings per share 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 last year, the company posted $0.31 EPS. The firm's quarterly revenue 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. As a group, equities research analysts forecast that Super Micro Computer, Inc. will post 4.04 EPS for the current year.

Insider Buying and Selling at Super Micro Computer

In related news, CEO Charles Liang sold 100,000 shares of the firm's stock in a transaction 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 chief executive officer owned 537,506 shares of the company's stock, valued at $19,989,848.14. This trade represents a 15.69% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this hyperlink. 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 dated Thursday, September 3rd. The stock was 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 of the company's stock, valued at approximately $19,989,848.14. The trade was a 15.69% decrease in their position. 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 Investors Weigh In On Super Micro Computer

A number of institutional investors have recently added to or reduced their stakes in SMCI. Norges Bank purchased a new stake in shares of Super Micro Computer in the fourth quarter valued at about $136,569,000. Assenagon Asset Management S.A. increased its stake in Super Micro Computer by 1,770.4% in the 2nd 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 during 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 worth $30,736,000 after buying an additional 1,040,480 shares in the last quarter. Ardmore Road Asset Management LP purchased a new position in shares of Super Micro Computer in the 1st quarter worth approximately $11,954,000. Finally, Diversify Wealth Management LLC bought a new position in shares of Super Micro Computer in the first quarter valued at approximately $7,455,000. 84.06% of the stock is owned by institutional investors.

About Super Micro Computer

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.

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