Super Micro Computer (NASDAQ:SMCI) Shares Down 3% - Should You Sell?

Key Points

• Super Micro Computer shares fell by 3%, closing at $53.11, with trading volume dropping 61% compared to its average.
• Recent analyst reports have mixed ratings for the stock, with one analyst giving it a Strong Buy rating, while others have set target prices ranging from $30.00 to $60.00.
• The company's latest earnings report revealed a missed estimate, reporting $0.41 EPS against an expected $0.44, with quarterly revenue of $5.76 billion.

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) traded down 3% during trading on Tuesday . The company traded as low as $52.98 and last traded at $53.11. 19,614,393 shares changed hands during mid-day trading, a decline of 61% from the average session volume of 50,403,848 shares. The stock had previously closed at $54.75.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the stock. Sanford C. Bernstein raised shares of Super Micro Computer to a "hold" rating in a research note on Tuesday, September 16th. Raymond James Financial assumed coverage on shares of Super Micro Computer in a research note on Wednesday, June 25th. They set an "outperform" rating on the stock. Barclays raised their price target on shares of Super Micro Computer from $29.00 to $45.00 and gave the stock an "equal weight" rating in a research note on Thursday, August 7th. Wedbush reaffirmed a "neutral" rating and set a $30.00 price target on shares of Super Micro Computer in a research note on Monday, August 4th. Finally, Needham & Company LLC boosted their target price on shares of Super Micro Computer from $39.00 to $60.00 and gave the company a "buy" rating in a report on Wednesday, August 6th. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, ten have assigned a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus target price of $45.36.

Super Micro Computer Price Performance

The stock has a market cap of $31.56 billion, a PE ratio of 31.99, a price-to-earnings-growth ratio of 1.32 and a beta of 1.55. The company's fifty day moving average is $46.48 and its 200 day moving average is $43.67. The company has a quick ratio of 3.25, a current ratio of 5.25 and a debt-to-equity ratio of 0.74.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last posted its quarterly earnings data on Tuesday, August 5th. The company reported $0.41 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.44 by ($0.03). The firm had revenue of $5.76 billion for the quarter, compared to analysts' expectations of $5.88 billion. Super Micro Computer had a net margin of 4.77% and a return on equity of 17.14%. The company's revenue for the quarter was up 8.5% on a year-over-year basis. During the same quarter in the prior year, the business earned $6.25 EPS. Super Micro Computer has set its Q1 2026 guidance at 0.400-0.520 EPS. FY 2026 guidance at EPS. As a group, sell-side analysts anticipate 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 Super Micro Computer news, SVP George Kao sold 40,000 shares of Super Micro Computer stock in a transaction on Friday, August 22nd. The shares were sold at an average price of $43.88, for a total value of $1,755,200.00. Following the completion of the transaction, the senior vice president owned 21,820 shares of the company's stock, valued at $957,461.60. The trade was a 64.70% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through this link. Also, CFO David E. Weigand sold 25,000 shares of Super Micro Computer stock in a transaction on Monday, September 15th. The stock was sold at an average price of $45.14, for a total transaction of $1,128,500.00. Following the completion of the transaction, the chief financial officer directly owned 100,188 shares of the company's stock, valued at approximately $4,522,486.32. This represents a 19.97% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 490,000 shares of company stock worth $27,890,950 over the last three months. 16.30% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Super Micro Computer

A number of hedge funds and other institutional investors have recently modified their holdings of SMCI. Anfield Capital Management LLC bought a new stake in shares of Super Micro Computer during the second quarter valued at about $25,000. Twin Peaks Wealth Advisors LLC bought a new stake in Super Micro Computer in the second quarter worth about $25,000. Eastern Bank bought a new stake in Super Micro Computer in the first quarter worth about $29,000. Armstrong Advisory Group Inc. bought a new stake in Super Micro Computer in the third quarter worth about $29,000. Finally, Beaird Harris Wealth Management LLC bought a new stake in Super Micro Computer in the first quarter worth about $34,000. 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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