Super Micro Computer (NASDAQ:SMCI) Shares Gap Up - Should You Buy?

Key Points

• Super Micro Computer's stock price opened at $46.56, after closing at $43.95, with significant trading volume of over 11 million shares.
• Analysts have varied opinions on the stock, with Needham & Company increasing their price target from $39.00 to $60.00 and giving a "buy" rating, while others maintain neutral or sell ratings.
• The company reported a net margin of 4.77% and quarterly earnings of $0.41 per share, falling short of the consensus estimate of $0.44.

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report)'s stock price gapped up before the market opened on Friday . The stock had previously closed at $43.95, but opened at $46.56. Super Micro Computer shares last traded at $45.48, with a volume of 11,359,554 shares traded.

Wall Street Analysts Forecast Growth

Several research analysts have recently issued reports on SMCI shares. Needham & Company LLC boosted their price objective on shares of Super Micro Computer from $39.00 to $60.00 and gave the stock a "buy" rating in a report on Wednesday, August 6th. Wedbush restated a "neutral" rating and set a $30.00 price objective on shares of Super Micro Computer in a report on Monday, August 4th. Raymond James Financial initiated coverage on shares of Super Micro Computer in a research note on Wednesday, June 25th. They issued an "outperform" rating on the stock. JPMorgan Chase & Co. lowered their target price on shares of Super Micro Computer from $46.00 to $45.00 and set a "neutral" rating on the stock in a research note on Wednesday, August 6th. Finally, Citigroup reissued a "neutral" rating and issued a $52.00 target price (up previously from $37.00) on shares of Super Micro Computer in a research note on Friday, July 11th. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $45.31.

Super Micro Computer Price Performance

The company has a debt-to-equity ratio of 0.74, a current ratio of 5.25 and a quick ratio of 3.25. The stock has a market capitalization of $26.80 billion, a P/E ratio of 27.20, a PEG ratio of 1.09 and a beta of 1.56. The company's 50 day simple moving average is $48.06 and its two-hundred day simple moving average is $42.19.

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 for the quarter, missing the consensus estimate of $0.44 by ($0.03). The firm had revenue of $5.76 billion for the quarter, compared to the consensus estimate of $5.88 billion. Super Micro Computer had a return on equity of 17.14% and a net margin of 4.77%.Super Micro Computer's quarterly revenue was up 8.5% compared to the same quarter last year. During the same period in the prior year, the company posted $6.25 earnings per share. Super Micro Computer has set its Q1 2026 guidance at 0.400-0.520 EPS. FY 2026 guidance at EPS. As a group, equities analysts expect that Super Micro Computer, Inc. will post 1.86 EPS for the current fiscal year.

Insider Activity at Super Micro Computer

In other news, Director Liang Chiu-Chu Sara Liu sold 300,000 shares of the company'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 transaction of $13,500,000.00. Following the transaction, the director directly owned 66,903,640 shares in the company, valued at approximately $3,010,663,800. This represents a 0.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, SVP George Kao sold 40,000 shares of the company'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 transaction, the senior vice president owned 21,820 shares in the company, valued at $957,461.60. The trade was a 64.70% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 1,065,000 shares of company stock valued at $53,762,450 over the last ninety days. Company insiders own 16.30% of the company's stock.

Hedge Funds Weigh In On Super Micro Computer

A number of large investors have recently modified their holdings of SMCI. Anfield Capital Management LLC acquired a new position in Super Micro Computer in the second quarter valued at approximately $25,000. Twin Peaks Wealth Advisors LLC acquired a new position in Super Micro Computer in the second quarter valued at approximately $25,000. Eastern Bank acquired a new position in Super Micro Computer in the first quarter valued at approximately $29,000. Bernard Wealth Management Corp. acquired a new position in Super Micro Computer in the fourth quarter valued at approximately $33,000. Finally, Central Pacific Bank Trust Division acquired a new position in Super Micro Computer in the first quarter valued at approximately $34,000. 84.06% of the stock is currently owned by institutional investors and hedge funds.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest and most accurate reporting. This story was reviewed by MarketBeat's editorial team prior to publication. Please send any questions or comments about this story to contact@marketbeat.com.