Super Micro Computer (NASDAQ:SMCI) Stock Price Down 1.7% - Here's What Happened

Key Points

• Super Micro Computer shares fell by 1.7% to a trading price of $46.20, with a significant drop in trading volume, down 52% from its average.
• Despite a quarterly revenue of $5.76 billion, the company missed analysts' expectations, leading to an adjusted earnings per share forecast for the current year of 1.86.
• Insider trading activity highlighted a 64.7% decrease in share ownership from SVP George Kao after selling 40,000 shares, amidst a broader trend of insider sales totaling nearly $28 million in the past three months.

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) shares dropped 1.7% on Wednesday . The company traded as low as $46.17 and last traded at $46.20. Approximately 24,897,428 shares changed hands during mid-day trading, a decline of 52% from the average daily volume of 51,733,242 shares. The stock had previously closed at $46.99.

Wall Street Analyst Weigh In

SMCI has been the topic of a number of research reports. Raymond James Financial initiated coverage on Super Micro Computer in a report on Wednesday, June 25th. They issued an "outperform" rating on the stock. Wedbush restated a "neutral" rating and issued a $30.00 price target on shares of Super Micro Computer in a report on Monday, August 4th. The Goldman Sachs Group increased their target price on Super Micro Computer from $24.00 to $27.00 and gave the company a "sell" rating in a report on Wednesday, August 6th. Barclays increased their target price on Super Micro Computer from $29.00 to $45.00 and gave the company an "equal weight" rating in a report on Thursday, August 7th. Finally, JPMorgan Chase & Co. lowered their target price on Super Micro Computer from $46.00 to $45.00 and set a "neutral" rating on the stock in a report on Wednesday, August 6th. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, nine have given a Hold rating and two have assigned a Sell rating to the company's stock. Based on data from MarketBeat, Super Micro Computer has an average rating of "Hold" and an average target price of $45.36.

Super Micro Computer Stock Down 1.7%

The company has a current ratio of 5.25, a quick ratio of 3.25 and a debt-to-equity ratio of 0.74. The firm has a market capitalization of $27.46 billion, a PE ratio of 27.83, a price-to-earnings-growth ratio of 1.17 and a beta of 1.56. The firm has a 50-day moving average of $47.43 and a two-hundred day moving average of $42.45.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last issued 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). Super Micro Computer had a return on equity of 17.14% and a net margin of 4.77%.The firm had revenue of $5.76 billion during the quarter, compared to analysts' expectations of $5.88 billion. During the same period last year, the business posted $6.25 earnings per share. The company's quarterly revenue was up 8.5% compared to the same quarter last year. Super Micro Computer has set its Q1 2026 guidance at 0.400-0.520 EPS. FY 2026 guidance at EPS. On average, equities research analysts forecast that Super Micro Computer, Inc. will post 1.86 EPS for the current year.

Insiders Place Their Bets

In other news, SVP George Kao sold 40,000 shares of Super Micro Computer stock in a transaction dated 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 sale, the senior vice president directly owned 21,820 shares of the company's stock, valued at approximately $957,461.60. The trade was a 64.70% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CFO David E. Weigand sold 25,000 shares of Super Micro Computer stock in a transaction dated Monday, September 15th. The stock was sold at an average price of $45.14, for a total value of $1,128,500.00. Following the completion of the transaction, the chief financial officer owned 100,188 shares of the company's stock, valued at $4,522,486.32. This trade represents a 19.97% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 490,000 shares of company stock valued at $27,890,950 in the last three months. 16.30% of the stock is owned by insiders.

Hedge Funds Weigh In On Super Micro Computer

A number of hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. grew its stake in Super Micro Computer by 2.7% in the second quarter. Vanguard Group Inc. now owns 66,152,948 shares of the company's stock worth $3,242,156,000 after purchasing an additional 1,745,179 shares in the last quarter. Geode Capital Management LLC grew its stake in Super Micro Computer by 2.7% in the second quarter. Geode Capital Management LLC now owns 13,752,581 shares of the company's stock worth $671,316,000 after purchasing an additional 364,411 shares in the last quarter. Disciplined Growth Investors Inc. MN grew its stake in Super Micro Computer by 16.5% in the second quarter. Disciplined Growth Investors Inc. MN now owns 9,730,773 shares of the company's stock worth $476,905,000 after purchasing an additional 1,381,046 shares in the last quarter. Invesco Ltd. boosted its stake in Super Micro Computer by 31.6% in the second quarter. Invesco Ltd. now owns 8,639,784 shares of the company's stock valued at $423,436,000 after acquiring an additional 2,073,978 shares during the period. Finally, Charles Schwab Investment Management Inc. boosted its stake in Super Micro Computer by 5.3% in the second quarter. Charles Schwab Investment Management Inc. now owns 3,971,739 shares of the company's stock valued at $194,655,000 after acquiring an additional 200,109 shares during the period. 84.06% of the stock is currently owned by institutional investors and hedge funds.

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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