Super Micro Computer (NASDAQ:SMCI) Shares Up 1% - Should You Buy?

Key Points

• Super Micro Computer shares rose 1%, trading between $44.36 and $45.01 with a significantly lower trading volume of around 6.26 million shares.
• Analysts have mixed ratings on the stock, with target prices ranging from $30 to $60, and a consensus rating of "Hold".
• CEO Charles Liang and Director Liang Chiu-Chu Sara Liu both sold 300,000 shares each at an average price of $45.00 recently, indicating a decrease in their ownership positions.

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report)'s share price rose 1% during mid-day trading on Wednesday . The company traded as high as $45.01 and last traded at $44.82. Approximately 6,260,677 shares were traded during mid-day trading, a decline of 89% from the average daily volume of 54,488,969 shares. The stock had previously closed at $44.36.

Analyst Upgrades and Downgrades

Several research analysts have recently commented on SMCI shares. Rosenblatt Securities decreased their target price on Super Micro Computer from $55.00 to $50.00 and set a "buy" rating for the company in a research report on Wednesday, May 7th. Needham & Company LLC raised their target price 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. Wedbush reissued a "neutral" rating and issued a $30.00 price target on shares of Super Micro Computer in a report on Monday, August 4th. JPMorgan Chase & Co. reduced their target price on Super Micro Computer from $46.00 to $45.00 and set a "neutral" rating for the company in a report on Wednesday, August 6th. Finally, Raymond James Financial initiated coverage on shares of Super Micro Computer in a research report on Wednesday, June 25th. They set an "outperform" rating on the stock. One analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and an average target price of $44.75.

Super Micro Computer Stock Performance

The company has a market capitalization of $26.57 billion, a P/E ratio of 26.83, a price-to-earnings-growth ratio of 1.10 and a beta of 1.46. The firm has a 50 day moving average price of $49.07 and a two-hundred day moving average price of $42.74. The company has a debt-to-equity ratio of 0.74, a quick ratio of 3.32 and a current ratio of 5.32.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last posted its earnings results 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 during 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%.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 company posted $6.25 EPS. Super Micro Computer has set its Q1 2026 guidance at 0.400-0.520 EPS. FY 2026 guidance at EPS. On average, research analysts expect that Super Micro Computer, Inc. will post 1.86 earnings per share for the current fiscal year.

Insider Buying and Selling at Super Micro Computer

In other news, CEO Charles Liang sold 300,000 shares of the firm's stock in a transaction dated 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 sale, the chief executive officer 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 transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Liang Chiu-Chu Sara Liu sold 300,000 shares of the stock in a transaction dated Wednesday, June 18th. The stock was sold at an average price of $45.00, for a total value of $13,500,000.00. Following the transaction, the director owned 66,903,640 shares of the company's stock, 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. Over the last ninety days, insiders have sold 1,040,000 shares of company stock valued at $52,755,200. 16.30% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Super Micro Computer

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Envestnet Asset Management Inc. acquired a new position in shares of Super Micro Computer during the 4th quarter worth approximately $1,624,000. Dimensional Fund Advisors LP acquired a new position in shares of Super Micro Computer during the 4th quarter worth $8,991,000. Price T Rowe Associates Inc. MD lifted its holdings in shares of Super Micro Computer by 1,029.9% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 1,419,255 shares of the company's stock worth $43,260,000 after acquiring an additional 1,293,647 shares during the last quarter. Integrated Wealth Concepts LLC increased its holdings in shares of Super Micro Computer by 1,185.1% during the fourth quarter. Integrated Wealth Concepts LLC now owns 15,820 shares of the company's stock worth $482,000 after buying an additional 14,589 shares in the last quarter. Finally, Voya Investment Management LLC boosted its stake in shares of Super Micro Computer by 843.7% during the fourth quarter. Voya Investment Management LLC now owns 303,029 shares of the company's stock valued at $9,236,000 after purchasing an additional 270,918 shares in the last quarter. 84.06% of the stock is owned by 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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