Super Micro Computer (NASDAQ:SMCI) Shares Down 3.2% - Should You Sell?

Key Points

• Super Micro Computer (NASDAQ:SMCI) shares fell by 3.2% on Wednesday, trading at $41.86 after a significant decline in share volume, down 82% from average levels.
• Despite the recent drop, analysts maintain a consensus "Hold" rating with a target price averaging $44.75, while some firms have set higher price targets amid expectations of growth from hyperscaler spending.
• Insider trading activity was notable as both Director Liang Chiu-Chu Sara Liu and CEO Charles Liang sold 200,000 shares at $60.00 each, totaling $12 million, indicating a reduction in their ownership by 0.49%.

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) traded down 3.2% on Wednesday . The company traded as low as $41.31 and last traded at $41.86. 10,161,729 shares traded hands during trading, a decline of 82% from the average session volume of 55,539,234 shares. The stock had previously closed at $43.24.

Wall Street Analysts Forecast Growth

Several research analysts have recently commented on the company. Raymond James Financial assumed coverage on Super Micro Computer in a report on Wednesday, June 25th. They set an "outperform" rating for the company. Mizuho boosted their target price on 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 Super Micro Computer to a "hold" rating in a research report on Monday, August 11th. JPMorgan Chase & Co. dropped their target price on Super Micro Computer from $46.00 to $45.00 and set a "neutral" rating for the company in a research report on Wednesday, August 6th. Finally, Citigroup reiterated a "neutral" rating and issued a $52.00 price objective (up previously from $37.00) on shares of Super Micro Computer in a research report on Friday, July 11th. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average target price of $44.75.

Super Micro Computer Price Performance

The firm has a market cap of $25.06 billion, a PE ratio of 25.29, a PEG ratio of 1.14 and a beta of 1.46. The firm has a fifty day simple moving average of $49.02 and a two-hundred day simple moving average of $42.32. The company has a debt-to-equity ratio of 0.74, a quick ratio of 3.32 and a current ratio of 5.32.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last released its quarterly earnings results 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 return on equity of 17.14% and a net margin of 4.77%.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 firm posted $6.25 earnings per share. The company'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. Equities analysts predict that Super Micro Computer, Inc. will post 1.86 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Liang Chiu-Chu Sara Liu 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 value of $12,000,000.00. Following the completion of the transaction, the director directly owned 40,426,120 shares in the company, valued at approximately $2,425,567,200. This represents a 0.49% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CEO Charles Liang sold 200,000 shares of the firm's stock in a transaction on Monday, July 28th. The shares were sold at an average price of $60.00, for a total value of $12,000,000.00. Following the completion of the sale, the chief executive officer owned 40,426,120 shares in the company, valued at approximately $2,425,567,200. This represents a 0.49% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 1,000,000 shares of company stock valued at $51,000,000 over the last 90 days. Company insiders own 16.30% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of SMCI. Anfield Capital Management LLC acquired a new position in Super Micro Computer in the second quarter worth about $25,000. Twin Peaks Wealth Advisors LLC bought a new position in Super Micro Computer in the second quarter worth about $25,000. TD Private Client Wealth LLC lifted its holdings in Super Micro Computer by 46.0% in the second quarter. TD Private Client Wealth LLC now owns 800 shares of the company's stock worth $39,000 after acquiring an additional 252 shares during the last quarter. Orion Capital Management LLC acquired a new position in shares of Super Micro Computer during the second quarter valued at approximately $39,000. Finally, Avion Wealth increased its stake in shares of Super Micro Computer by 434.6% during the second quarter. Avion Wealth now owns 834 shares of the company's stock valued at $40,000 after acquiring 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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