Super Micro Computer (NASDAQ:SMCI) Shares Down 1.6% - Should You Sell?

Key Points

• Super Micro Computer shares fell by 1.6% to $45.70, with trading volume significantly decreasing to approximately 9.63 million shares from an average of 56.51 million.
• Equities analysts have given mixed ratings on the stock, with some firms increasing their price targets while others, like JPMorgan, reduced their target from $46.00 to $45.00.
• The company's recent earnings report showed a quarterly revenue of $5.76 billion, falling short of estimates, with a reported EPS of $0.41 compared to the expected $0.44.

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) shares were down 1.6% on Wednesday . The company traded as low as $45.76 and last traded at $45.70. Approximately 9,628,745 shares traded hands during mid-day trading, a decline of 83% from the average daily volume of 56,512,367 shares. The stock had previously closed at $46.43.

Wall Street Analysts Forecast Growth

A number of equities research analysts have weighed in on SMCI shares. Needham & Company LLC upped their price objective on shares of Super Micro Computer from $39.00 to $60.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. JPMorgan Chase & Co. cut their price objective on shares of Super Micro Computer from $46.00 to $45.00 and set a "neutral" rating on the stock in a report on Wednesday, August 6th. KGI Securities assumed coverage on shares of Super Micro Computer in a research note on Wednesday, May 7th. They issued a "neutral" rating on the stock. Wedbush reiterated a "neutral" rating and issued a $30.00 target price on shares of Super Micro Computer in a research note on Monday, August 4th. Finally, Northland Securities set a $59.00 target price on shares of Super Micro Computer in a research note on Wednesday, May 7th. Three research analysts have rated the stock with a sell rating, eight have given a hold rating, six have issued a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, Super Micro Computer currently has an average rating of "Hold" and an average target price of $44.75.

Super Micro Computer Price Performance

The company has a quick ratio of 3.32, a current ratio of 5.32 and a debt-to-equity ratio of 0.74. The stock's 50-day simple moving average is $48.75 and its two-hundred day simple moving average is $41.74. The company has a market capitalization of $27.49 billion, a price-to-earnings ratio of 27.75, a PEG ratio of 1.20 and a beta of 1.46.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last issued its earnings results on Tuesday, August 5th. The company reported $0.41 EPS for the quarter, missing analysts' consensus estimates of $0.44 by ($0.03). The business had revenue of $5.76 billion during the quarter, compared to analyst estimates of $5.88 billion. Super Micro Computer had a net margin of 4.77% and a return on equity of 17.14%. Super Micro Computer's quarterly revenue was up 8.5% on a year-over-year basis. During the same quarter last year, the company earned $6.25 earnings per share. Equities research analysts predict that Super Micro Computer, Inc. will post 1.86 earnings per share for the current year.

Insider Activity

In other news, CFO David E. Weigand sold 67,000 shares of the stock in a transaction dated Tuesday, May 20th. The shares were sold at an average price of $44.02, for a total value of $2,949,340.00. Following the completion of the sale, the chief financial officer directly owned 88,599 shares in the company, valued at $3,900,127.98. This represents a 43.06% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, Director Liang Chiu-Chu Sara Liu sold 200,000 shares of the company's stock in a transaction dated 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 directly owned 40,426,120 shares of the company's stock, valued at $2,425,567,200. This represents a 0.49% decrease in their position. The disclosure for this sale can be found here. Insiders sold 1,067,000 shares of company stock worth $53,949,340 over the last three months. Insiders own 16.30% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the stock. Anfield Capital Management LLC purchased a new position in Super Micro Computer during the 2nd quarter valued at about $25,000. Twin Peaks Wealth Advisors LLC acquired a new position in shares of Super Micro Computer in the second quarter valued at approximately $25,000. TD Private Client Wealth LLC increased its stake in Super Micro Computer by 46.0% during the 2nd quarter. TD Private Client Wealth LLC now owns 800 shares of the company's stock worth $39,000 after buying an additional 252 shares during the period. Orion Capital Management LLC acquired a new stake in Super Micro Computer during the 2nd quarter worth approximately $39,000. Finally, Avion Wealth boosted its position in Super Micro Computer by 434.6% in the 2nd quarter. Avion Wealth now owns 834 shares of the company's stock valued at $40,000 after buying an additional 678 shares during the period. Institutional investors and hedge funds own 84.06% of the company's stock.

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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