Super Micro Computer (NASDAQ:SMCI) Shares Down 2.7% - Here's Why

Key Points

• Super Micro Computer's shares fell 2.7%, trading at $44.82 after closing at $46.07, with trading volume significantly down by 84% compared to the average.
• Analysts have set price targets for Super Micro Computer ranging from $27.00 to $59.00, with the consensus target around $44.75, while the stock carries an average rating of "Hold".
• Insider sales included two significant transactions by Director Liang Chiu-Chu Sara Liu and CEO Charles Liang, each selling 200,000 shares at an average price of $60.00, totaling $12 million.

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) dropped 2.7% during mid-day trading on Thursday . The stock traded as low as $44.78 and last traded at $44.82. Approximately 8,968,623 shares traded hands during mid-day trading, a decline of 84% from the average daily volume of 56,310,762 shares. The stock had previously closed at $46.07.

Analysts Set New Price Targets

SMCI has been the topic of several research analyst reports. Northland Securities set a $59.00 target price on shares of Super Micro Computer in a research report on Wednesday, May 7th. Wedbush reiterated a "neutral" rating and issued a $30.00 target price on shares of Super Micro Computer in a research report on Monday, August 4th. The Goldman Sachs Group boosted their price target on shares of Super Micro Computer from $24.00 to $27.00 and gave the stock a "sell" rating in a research report on Wednesday, August 6th. Citigroup restated a "neutral" rating and set a $52.00 price target (up from $37.00) on shares of Super Micro Computer in a research report on Friday, July 11th. Finally, Mizuho boosted 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. Three analysts have rated the stock with a sell rating, eight have assigned a hold rating, six have assigned a buy rating and one has given a strong buy rating to the stock. According to data from MarketBeat.com, Super Micro Computer has an average rating of "Hold" and a consensus price target of $44.75.

Super Micro Computer Price Performance

The firm has a market capitalization of $26.83 billion, a price-to-earnings ratio of 27.06, a PEG ratio of 1.16 and a beta of 1.46. The company has a debt-to-equity ratio of 0.74, a current ratio of 5.32 and a quick ratio of 3.32. The company's 50-day moving average is $48.79 and its 200-day moving average is $41.77.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last posted 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). Super Micro Computer had a return on equity of 17.14% and a net margin of 4.77%. The firm had revenue of $5.76 billion for the quarter, compared to analyst estimates of $5.88 billion. During the same period in the previous year, the firm posted $6.25 earnings per share. The company's revenue for the quarter was up 8.5% on a year-over-year basis. On average, research analysts expect that Super Micro Computer, Inc. will post 1.86 earnings per share for the current year.

Insider Buying and Selling at Super Micro Computer

In other Super Micro Computer news, 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 approximately $2,425,567,200. This represents a 0.49% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Charles Liang sold 200,000 shares of the stock in a transaction that occurred on 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 completion of the sale, the chief executive officer directly owned 40,426,120 shares of the company's stock, valued at $2,425,567,200. This trade represents a 0.49% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 1,067,000 shares of company stock valued at $53,949,340. 16.30% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Super Micro Computer

Hedge funds and other institutional investors have recently modified their holdings of the stock. Franklin Resources Inc. bought a new position in Super Micro Computer in the fourth quarter worth $1,031,000. Envestnet Asset Management Inc. acquired a new position in shares of Super Micro Computer during the 4th quarter worth about $1,624,000. Russell Investments Group Ltd. grew its position in shares of Super Micro Computer by 1,144.3% during the 4th quarter. Russell Investments Group Ltd. now owns 132,688 shares of the company's stock worth $4,044,000 after buying an additional 122,024 shares during the period. Cerity Partners LLC grew its position in shares of Super Micro Computer by 495.0% in the 4th quarter. Cerity Partners LLC now owns 16,106 shares of the company's stock valued at $491,000 after purchasing an additional 13,399 shares during the period. Finally, Bessemer Group Inc. lifted its stake in Super Micro Computer by 1,014.7% in the 4th quarter. Bessemer Group Inc. now owns 2,118 shares of the company's stock valued at $65,000 after acquiring an additional 1,928 shares in the last quarter. Institutional investors and hedge funds own 84.06% of the company's stock.

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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