Super Micro Computer (NASDAQ:SMCI) Shares Down 3.8% - Time to Sell?

Key Points

• Super Micro Computer's shares fell by 3.8% to $39.96, with a significant decline in trading volume, dropping to 11 million shares, about 79% lower than the average daily volume.
• Analysts recently provided mixed ratings, with Bank of America issuing an "underperform" rating and a price target of $35.00, while Mizuho raised their target price to $47.00 with a "neutral" rating.
• Super Micro's quarterly earnings fell short of expectations, reporting $0.41 EPS against a consensus estimate of $0.44 and revenue of $5.76 billion, below estimates of $5.88 billion.

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) shares fell 3.8% on Tuesday . The stock traded as low as $39.56 and last traded at $39.96. 11,287,402 shares changed hands during mid-day trading, a decline of 79% from the average session volume of 53,999,383 shares. The stock had previously closed at $41.54.

Analyst Ratings Changes

A number of research firms recently issued reports on SMCI. KGI Securities began coverage on shares of Super Micro Computer in a research note on Wednesday, May 7th. They issued a "neutral" rating on the stock. Raymond James Financial initiated coverage on shares of Super Micro Computer in a research note on Wednesday, June 25th. They set an "outperform" rating for the company. Wall Street Zen upgraded shares of Super Micro Computer to a "sell" rating in a research report on Thursday, May 8th. Mizuho lifted their price target on shares of Super Micro Computer from $40.00 to $47.00 and gave the company a "neutral" rating in a report on Thursday, July 3rd. Finally, Wedbush reaffirmed a "neutral" rating and set a $30.00 price objective on shares of Super Micro Computer in a research note on Monday, August 4th. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, eight have issued a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has an average rating of "Hold" and an average target price of $45.31.

Super Micro Computer Stock Performance

The company has a debt-to-equity ratio of 0.74, a quick ratio of 3.25 and a current ratio of 5.25. The firm has a market cap of $24.19 billion, a price-to-earnings ratio of 24.52, a price-to-earnings-growth ratio of 1.00 and a beta of 1.56. The stock has a 50-day moving average of $48.66 and a 200-day moving average of $42.68.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last released its earnings results 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 business had revenue of $5.76 billion during the quarter, compared to the consensus estimate of $5.88 billion. During the same period last year, the business posted $6.25 EPS. The firm's revenue for the quarter 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. As a group, analysts anticipate that Super Micro Computer, Inc. will post 1.86 EPS for the current fiscal year.

Insider Transactions at Super Micro Computer

In related news, CEO Charles Liang sold 300,000 shares of the business's stock in a transaction that occurred on Wednesday, June 18th. The stock was sold at an average price of $45.00, for a total transaction of $13,500,000.00. Following the transaction, the chief executive officer directly owned 66,903,640 shares of the company's stock, valued at approximately $3,010,663,800. The trade was a 0.45% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Liang Chiu-Chu Sara Liu sold 300,000 shares of the company's stock in a transaction dated Wednesday, June 18th. The shares were sold at an average price of $45.00, for a total transaction of $13,500,000.00. Following the completion of the transaction, the director owned 66,903,640 shares in the company, valued at approximately $3,010,663,800. This trade represents a 0.45% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 1,040,000 shares of company stock worth $52,755,200. 16.30% of the stock is owned by company insiders.

Institutional Trading of Super Micro Computer

Several hedge funds and other institutional investors have recently bought and sold shares of SMCI. Anfield Capital Management LLC bought a new position in shares of Super Micro Computer during the second quarter worth approximately $25,000. Twin Peaks Wealth Advisors LLC bought a new position in Super Micro Computer during the 2nd quarter worth $25,000. Eastern Bank bought a new stake in shares of Super Micro Computer during the 1st quarter valued at $29,000. Bernard Wealth Management Corp. bought a new stake in shares of Super Micro Computer during the 4th quarter valued at $33,000. Finally, Central Pacific Bank Trust Division acquired a new position in shares of Super Micro Computer in the 1st quarter valued at approximately $34,000. 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.