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

Key Points

• Super Micro Computer's shares gapped down from a previous close of $43.97 to an opening of $42.80, closing at $41.75 on a trading volume of over 6 million shares.
• The company missed quarterly earnings estimates, reporting $0.41 EPS versus the expected $0.44, and its revenue of $5.76 billion fell short of projections.
• Analyst ratings for the stock vary, with a range of ratings including one "Strong Buy," six "Buy," eight "Hold," and two "Sell," alongside an average target price set at $45.31.

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) gapped down before the market opened on Friday . The stock had previously closed at $43.97, but opened at $42.80. Super Micro Computer shares last traded at $41.75, with a volume of 6,082,981 shares changing hands.

Analyst Upgrades and Downgrades

SMCI has been the topic of several research reports. Citigroup restated a "neutral" rating and issued a $52.00 target price (up from $37.00) on shares of Super Micro Computer in a research note on Friday, July 11th. Mizuho increased their target price on shares of 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 raised shares of Super Micro Computer to a "hold" rating in a research report on Monday, August 11th. Raymond James Financial began coverage on shares of Super Micro Computer in a research note on Wednesday, June 25th. They set an "outperform" rating on the stock. Finally, Needham & Company LLC lifted their price objective on shares of Super Micro Computer from $39.00 to $60.00 and gave the company a "buy" rating in a research note on Wednesday, August 6th. One 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 given a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Hold" and an average target price of $45.31.

Super Micro Computer Stock Performance

The company's fifty day simple moving average is $49.06 and its 200 day simple moving average is $42.76. The stock has a market capitalization of $25.03 billion, a P/E ratio of 25.32, a P/E/G ratio of 1.12 and a beta of 1.46. The company has a current ratio of 5.32, a quick ratio of 3.32 and a debt-to-equity ratio of 0.74.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last issued 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). Super Micro Computer had a return on equity of 17.14% and a net margin of 4.77%.The business had revenue of $5.76 billion during the quarter, compared to analysts' expectations of $5.88 billion. During the same quarter last year, the business posted $6.25 EPS. The company's quarterly 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. As a group, sell-side analysts forecast that Super Micro Computer, Inc. will post 1.86 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO Charles Liang sold 300,000 shares of the firm's stock in a transaction that occurred on Wednesday, June 18th. The shares were sold at an average price of $45.00, for a total value of $13,500,000.00. Following the sale, the chief executive officer directly owned 66,903,640 shares of the company's stock, valued at $3,010,663,800. This trade represents a 0.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, SVP George Kao sold 40,000 shares of the business's stock in a transaction that occurred on Friday, August 22nd. The stock was sold at an average price of $43.88, for a total transaction of $1,755,200.00. Following the completion of the transaction, the senior vice president directly owned 21,820 shares of the company's stock, valued at approximately $957,461.60. This represents a 64.70% decrease in their position. The disclosure for this sale can be found here. Over the last three months, insiders have sold 1,040,000 shares of company stock worth $52,755,200. Insiders own 16.30% of the company's stock.

Hedge Funds Weigh In On Super Micro Computer

Hedge funds and other institutional investors have recently modified their holdings of the company. Dimensional Fund Advisors LP purchased a new position in shares of Super Micro Computer during the fourth quarter worth approximately $8,991,000. Integrated Wealth Concepts LLC raised its holdings in Super Micro Computer by 1,185.1% during the 4th quarter. Integrated Wealth Concepts LLC now owns 15,820 shares of the company's stock valued at $482,000 after buying an additional 14,589 shares during the last quarter. Boothbay Fund Management LLC purchased a new stake in Super Micro Computer during the 4th quarter valued at $394,000. Quarry LP bought a new stake in Super Micro Computer in the 4th quarter worth $34,000. Finally, Public Employees Retirement Association of Colorado bought a new stake in Super Micro Computer in the 4th quarter worth $1,622,000. 84.06% of the stock is currently owned by hedge funds and other 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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