Super Micro Computer (NASDAQ:SMCI) Shares Down 9.7% - Should You Sell?

Key Points

• Super Micro Computer shares fell 9.7% to $25.70, with trading volume near 40 million shares.
• Analyst sentiment remains cautious: the stock has an average rating of “Hold” and an average price target of $39.21, implying potential upside from its current price.
• The company beat quarterly EPS expectations ($0.84 versus $0.63) and reported 122.7% year-over-year revenue growth, while institutional investors hold 84.06% of outstanding shares.

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) fell 9.7% on Wednesday . The company traded as low as $25.68 and last traded at $25.70. 39,938,072 shares were traded during trading, a decline of 9% from the average daily volume of 43,978,859 shares. The stock had previously closed at $28.45.

Analysts Set New Price Targets

SMCI has been the subject of a number of recent research reports. Northland Securities set a $36.00 target price on Super Micro Computer in a report on Wednesday, July 22nd. Citigroup restated a "neutral" rating and set a $33.00 price target (up from $31.00) on shares of Super Micro Computer in a report on Monday, July 13th. Wolfe Research initiated coverage on Super Micro Computer in a research note on Thursday, June 11th. They issued a "peer perform" rating for the company. Rosenblatt Securities set a $45.00 price objective on shares of Super Micro Computer and gave the company a "buy" rating in a report on Wednesday, July 22nd. Finally, CJS Securities upgraded shares of Super Micro Computer from a "market underperform" rating to a "market perform" rating in a report on Wednesday, May 6th. Four analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $39.21.

Super Micro Computer Stock Performance

The firm has a market capitalization of $15.46 billion, a P/E ratio of 13.60, a price-to-earnings-growth ratio of 0.35 and a beta of 1.94. The company has a current ratio of 2.66, a quick ratio of 1.29 and a debt-to-equity ratio of 0.88. The company has a 50-day moving average of $32.62 and a 200-day moving average of $30.51.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last announced its earnings results on Tuesday, May 5th. The company reported $0.84 EPS for the quarter, topping the consensus estimate of $0.63 by $0.21. The firm had revenue of $10.24 billion for the quarter, compared to the consensus estimate of $12.39 billion. Super Micro Computer had a return on equity of 17.49% and a net margin of 3.70%.The business's quarterly revenue was up 122.7% compared to the same quarter last year. During the same period in the previous year, the business earned $0.31 EPS. Super Micro Computer has set its Q4 2026 guidance at 0.650-0.790 EPS. On average, equities analysts anticipate that Super Micro Computer, Inc. will post 2.1 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in SMCI. Advisors Asset Management Inc. acquired a new stake in shares of Super Micro Computer during the first quarter worth $39,000. EverSource Wealth Advisors LLC boosted its position in Super Micro Computer by 42.4% during the second quarter. EverSource Wealth Advisors LLC now owns 3,479 shares of the company's stock valued at $171,000 after acquiring an additional 1,036 shares during the last quarter. Baird Financial Group Inc. grew its holdings in Super Micro Computer by 54.9% during the 2nd quarter. Baird Financial Group Inc. now owns 18,955 shares of the company's stock worth $929,000 after acquiring an additional 6,718 shares during the period. Flow Traders U.S. LLC acquired a new stake in Super Micro Computer during the 2nd quarter worth about $277,000. Finally, Daiwa Securities Group Inc. raised its position in shares of Super Micro Computer by 3.4% in the 2nd quarter. Daiwa Securities Group Inc. now owns 85,647 shares of the company's stock worth $4,198,000 after acquiring an additional 2,799 shares in the last quarter. Institutional investors own 84.06% of the company's stock.

Super Micro Computer Company Profile

Super Micro Computer, Inc (Supermicro) is a technology company that designs, develops and manufactures high-performance server, storage and networking solutions for enterprise, cloud, data center, high performance computing (HPC) and edge computing customers. The company's product portfolio includes rackmount and blade servers, storage subsystems, motherboards, chassis, power supplies and networking components, with an emphasis on high-density, energy-efficient configurations and platforms optimized for GPU-accelerated workloads and artificial intelligence applications.

Headquartered in San Jose, California, Supermicro combines in-house engineering with a global manufacturing and distribution footprint to deliver configurable, application-specific systems.

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