Super Micro Computer (NASDAQ:SMCI) Shares Down 1.2% - Should You Sell?

Key Points

• Super Micro Computer's shares fell 1.2% to $57.98 with a trading volume decline of 41% compared to its average session.
• Analysts have varied ratings for the stock, with estimates showing a consensus target price of $45.36 and one Strong Buy rating among multiple buy and hold ratings.
• The company reported earnings of $0.41 per share, missing the consensus estimate of $0.44, and had a net margin of 4.77% with revenue of $5.76 billion.

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) shares fell 1.2% on Thursday . The company traded as low as $57.26 and last traded at $57.98. 29,674,116 shares changed hands during mid-day trading, a decline of 41% from the average session volume of 50,710,195 shares. The stock had previously closed at $58.68.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently commented on SMCI shares. Wedbush reiterated a "neutral" rating and set a $30.00 price objective on shares of Super Micro Computer in a research report on Monday, August 4th. Needham & Company LLC increased their price target on shares of Super Micro Computer from $39.00 to $60.00 and gave the stock a "buy" rating in a research report on Wednesday, August 6th. Mizuho increased their price target on shares of Super Micro Computer from $40.00 to $47.00 and gave the stock a "neutral" rating in a research report on Thursday, July 3rd. Zacks Research upgraded shares of Super Micro Computer to a "hold" rating in a research report on Monday, August 11th. Finally, Raymond James Financial initiated coverage on shares of Super Micro Computer in a research report on Wednesday, June 25th. They issued an "outperform" rating for the company. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, ten have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of "Hold" and a consensus target price of $45.36.

Super Micro Computer Trading Down 1.2%

The company has a fifty day simple moving average of $46.63 and a two-hundred day simple moving average of $43.34. The company has a debt-to-equity ratio of 0.74, a current ratio of 5.25 and a quick ratio of 3.25. The company has a market capitalization of $34.46 billion, a P/E ratio of 34.93, a price-to-earnings-growth ratio of 1.46 and a beta of 1.55.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last issued its quarterly earnings data on Tuesday, August 5th. The company reported $0.41 earnings per share for the quarter, missing analysts' consensus estimates 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 company had revenue of $5.76 billion during the quarter, compared to the consensus estimate of $5.88 billion. During the same period in the previous year, the business posted $6.25 earnings per share. The firm's revenue was up 8.5% on a year-over-year basis. Super Micro Computer has set its Q1 2026 guidance at 0.400-0.520 EPS. FY 2026 guidance at EPS. On average, analysts forecast that Super Micro Computer, Inc. will post 1.86 earnings per share for the current fiscal year.

Insider Activity at Super Micro Computer

In other news, SVP George Kao sold 40,000 shares of the business's stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $43.88, for a total transaction of $1,755,200.00. Following the transaction, the senior vice president owned 21,820 shares in the company, valued at approximately $957,461.60. The trade was a 64.70% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CEO Charles Liang sold 200,000 shares of the business's stock in a transaction dated Monday, July 28th. The stock was sold at an average price of $60.00, for a total transaction of $12,000,000.00. Following the transaction, the chief executive officer 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 disclosure for this sale can be found here. Over the last ninety days, insiders sold 490,000 shares of company stock worth $27,890,950. 16.30% of the stock is owned by insiders.

Institutional Trading of Super Micro Computer

A number of institutional investors and hedge funds have recently modified their holdings of the company. Vanguard Group Inc. increased its position in shares of Super Micro Computer by 2.7% during the second quarter. Vanguard Group Inc. now owns 66,152,948 shares of the company's stock valued at $3,242,156,000 after purchasing an additional 1,745,179 shares during the period. Geode Capital Management LLC increased its stake in Super Micro Computer by 2.7% in the second quarter. Geode Capital Management LLC now owns 13,752,581 shares of the company's stock valued at $671,316,000 after acquiring an additional 364,411 shares during the period. Disciplined Growth Investors Inc. MN increased its stake in Super Micro Computer by 16.5% in the second quarter. Disciplined Growth Investors Inc. MN now owns 9,730,773 shares of the company's stock valued at $476,905,000 after acquiring an additional 1,381,046 shares during the period. Invesco Ltd. increased its stake in Super Micro Computer by 31.6% in the second quarter. Invesco Ltd. now owns 8,639,784 shares of the company's stock valued at $423,436,000 after acquiring an additional 2,073,978 shares during the period. Finally, Charles Schwab Investment Management Inc. increased its stake in Super Micro Computer by 5.3% in the second quarter. Charles Schwab Investment Management Inc. now owns 3,971,739 shares of the company's stock valued at $194,655,000 after acquiring an additional 200,109 shares during the period. 84.06% of the stock is currently owned by institutional investors.

Super Micro Computer Company Profile

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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