Super Micro Computer (NASDAQ:SMCI) Stock Price Down 4.1% - Here's What Happened

Key Points

• Super Micro Computer's shares fell 4.1%, closing at $43.99, with a trading volume 89% lower than its average.
• After missing earnings estimates with $0.41 EPS against a $0.44 forecast, Super Micro Computer's revenue also fell short, reporting $5.76 billion compared to the $5.88 billion expectation.
• Insider selling involved key executives selling 200,000 shares each at $60.00, resulting in a significant decrease in their ownership positions.

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report)'s stock price traded down 4.1% during mid-day trading on Tuesday . The stock traded as low as $44.46 and last traded at $43.99. 6,344,835 shares changed hands during mid-day trading, a decline of 89% from the average session volume of 55,674,621 shares. The stock had previously closed at $45.86.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on the company. Barclays increased their price objective on 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. Northland Securities set a $59.00 target price on Super Micro Computer in a research report on Wednesday, May 7th. Raymond James Financial assumed coverage on Super Micro Computer in a research report on Wednesday, June 25th. They set an "outperform" rating on the stock. Wall Street Zen raised Super Micro Computer to a "sell" rating in a research report on Thursday, May 8th. Finally, Bank of America assumed coverage on Super Micro Computer in a research report on Wednesday, July 9th. They set an "underperform" rating and a $35.00 target price on the stock. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, nine have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $44.75.

Super Micro Computer Price Performance

The company has a current ratio of 5.32, a quick ratio of 3.32 and a debt-to-equity ratio of 0.74. The stock has a market cap of $25.43 billion, a price-to-earnings ratio of 25.62, a PEG ratio of 1.08 and a beta of 1.46. The stock has a 50-day moving average price of $49.01 and a two-hundred day moving average price of $42.33.

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 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 return on equity of 17.14% and a net margin of 4.77%.The firm's revenue for the quarter was up 8.5% compared to the same quarter last year. During the same period in the previous 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, equities research analysts forecast that Super Micro Computer, Inc. will post 1.86 EPS for the current year.

Insider Transactions at Super Micro Computer

In other Super Micro Computer news, CEO Charles Liang sold 200,000 shares of Super Micro Computer stock in a transaction dated 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 owned 40,426,120 shares of the company's stock, valued at approximately $2,425,567,200. The trade was a 0.49% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Liang Chiu-Chu Sara Liu sold 200,000 shares of Super Micro Computer stock in a transaction dated 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 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 position. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 1,000,000 shares of company stock valued at $51,000,000. 16.30% of the stock is currently owned by insiders.

Institutional Trading of Super Micro Computer

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. B. Riley Wealth Advisors Inc. acquired a new stake in Super Micro Computer during the 2nd quarter worth about $1,169,000. Marex Group plc acquired a new stake in Super Micro Computer during the 2nd quarter worth about $14,118,000. Advisory Services Network LLC lifted its position in Super Micro Computer by 4.3% during the 2nd quarter. Advisory Services Network LLC now owns 111,324 shares of the company's stock worth $5,456,000 after acquiring an additional 4,551 shares during the period. Campbell Capital Management Inc. purchased a new position in shares of Super Micro Computer during the 2nd quarter valued at about $221,000. Finally, Tactive Advisors LLC purchased a new position in shares of Super Micro Computer during the 2nd quarter valued at about $868,000. 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.