Super Micro Computer (NASDAQ:SMCI) Raised to Hold at Wall Street Zen

Key Points

• Super Micro Computer's stock was upgraded from a "sell" to a "hold" rating by Wall Street Zen, reflecting a more optimistic outlook on the company's performance.
• The company's recent quarterly earnings missed expectations, reporting $0.41 EPS against a consensus estimate of $0.44, while revenue increased by 8.5% year-over-year but fell short of analysts' predictions.
• As of now, Super Micro Computer has an average analyst rating of "Hold" with a consensus price target of $45.36, indicating cautious optimism from the market.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) was upgraded by research analysts at Wall Street Zen from a "sell" rating to a "hold" rating in a report released on Saturday.

Other research analysts have also issued research reports about the stock. Zacks Research raised shares of Super Micro Computer to a "hold" rating in a research note on Monday, August 11th. Citigroup reaffirmed a "neutral" rating and issued a $52.00 target price (up previously from $37.00) on shares of Super Micro Computer in a report on Friday, July 11th. Sanford C. Bernstein raised shares of Super Micro Computer to a "hold" rating in a report on Tuesday, September 16th. Wedbush reaffirmed a "neutral" rating and issued a $30.00 target price on shares of Super Micro Computer in a report on Monday, August 4th. Finally, Weiss Ratings reaffirmed a "hold (c+)" rating on shares of Super Micro Computer in a report on Wednesday, October 8th. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, ten have given a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $45.36.

Super Micro Computer Trading Down 3.1%

Shares of SMCI stock opened at $52.18 on Friday. The company has a 50-day moving average of $46.83 and a two-hundred day moving average of $44.06. The company has a debt-to-equity ratio of 0.74, a current ratio of 5.25 and a quick ratio of 3.25. Super Micro Computer has a 1-year low of $17.25 and a 1-year high of $66.44. The firm has a market cap of $31.01 billion, a PE ratio of 31.43, a price-to-earnings-growth ratio of 1.34 and a beta of 1.55.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The company reported $0.41 EPS for the quarter, missing the consensus estimate of $0.44 by ($0.03). Super Micro Computer had a net margin of 4.77% and a return on equity of 17.14%. The business had revenue of $5.76 billion during the quarter, compared to analysts' expectations of $5.88 billion. During the same period in the previous year, the business posted $6.25 EPS. The company's revenue for the quarter was up 8.5% compared to the same quarter last year. Super Micro Computer has set its Q1 2026 guidance at 0.400-0.520 EPS. FY 2026 guidance at EPS. On average, analysts predict that Super Micro Computer will post 1.86 EPS for the current year.

Insider Activity at Super Micro Computer

In other news, Director Liang Chiu-Chu Sara Liu sold 200,000 shares of the business's stock in a transaction that occurred on Monday, July 28th. The shares were sold at an average price of $60.00, for a total transaction of $12,000,000.00. Following the completion of the sale, the director owned 40,426,120 shares in the company, valued at approximately $2,425,567,200. The trade was a 0.49% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, SVP George Kao sold 40,000 shares of the business's stock in a transaction that occurred on Friday, August 22nd. The stock was sold at an average price of $43.88, for a total transaction of $1,755,200.00. Following the sale, the senior vice president owned 21,820 shares of the company's stock, valued at $957,461.60. This represents a 64.70% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 490,000 shares of company stock worth $27,890,950 over the last 90 days. 16.30% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Super Micro Computer

A number of institutional investors have recently modified their holdings of the business. Blue Trust Inc. increased its holdings in shares of Super Micro Computer by 16.1% in the 2nd quarter. Blue Trust Inc. now owns 1,557 shares of the company's stock valued at $76,000 after acquiring an additional 216 shares during the period. Hartford Investment Management Co. increased its holdings in shares of Super Micro Computer by 0.8% in the 2nd quarter. Hartford Investment Management Co. now owns 30,976 shares of the company's stock valued at $1,518,000 after acquiring an additional 235 shares during the period. Securian Asset Management Inc. increased its holdings in shares of Super Micro Computer by 0.9% in the 2nd quarter. Securian Asset Management Inc. now owns 26,834 shares of the company's stock valued at $1,315,000 after acquiring an additional 246 shares during the period. Wealthcare Advisory Partners LLC grew its position in Super Micro Computer by 1.2% in the 2nd quarter. Wealthcare Advisory Partners LLC now owns 21,798 shares of the company's stock valued at $1,068,000 after buying an additional 248 shares during the last quarter. Finally, TD Private Client Wealth LLC grew its position in Super Micro Computer by 46.0% in the 2nd quarter. TD Private Client Wealth LLC now owns 800 shares of the company's stock valued at $39,000 after buying an additional 252 shares during the last quarter. 84.06% of the stock is owned by institutional investors and hedge funds.

About Super Micro Computer

Super Micro Computer, Inc, together with its subsidiaries, develops and manufactures high performance server and storage solutions based on modular and open architecture in the United States, Europe, Asia, and internationally. Its solutions range from complete server, storage systems, modular blade servers, blades, workstations, full racks, networking devices, server sub-systems, server management software, and security software.

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