Super Micro Computer (NASDAQ:SMCI) Stock Price Down 1.7% - Time to Sell?

Key Points

• Super Micro Computer's stock price decreased by 1.7% to $44.73, with a significantly reduced trading volume of 6.85 million shares, down 88% from the average.
• Analysts have mixed opinions, with some setting price targets ranging from $24.00 (Goldman Sachs) to $55.00 (Rosenblatt Securities) and an average target of $44.75, reflecting an overall "Hold" rating for the stock.
• Insider activity shows that CEO Charles Liang and CFO David E. Weigand have sold significant shares recently, with insiders collectively selling over 1 million shares worth nearly $54 million in the last quarter.

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) shares traded down 1.7% on Friday . The company traded as low as $44.77 and last traded at $44.73. 6,845,960 shares traded hands during trading, a decline of 88% from the average session volume of 56,077,422 shares. The stock had previously closed at $45.49.

Analysts Set New Price Targets

A number of equities research analysts have weighed in on the stock. The Goldman Sachs Group lifted their price target on shares of Super Micro Computer from $24.00 to $27.00 and gave the company a "sell" rating in a research report on Wednesday, August 6th. Barclays lifted their target price on shares of Super Micro Computer from $29.00 to $45.00 and gave the company an "equal weight" rating in a report on Thursday, August 7th. Rosenblatt Securities dropped their target price on shares of Super Micro Computer from $55.00 to $50.00 and set a "buy" rating for the company in a report on Wednesday, May 7th. Mizuho lifted their price objective on Super Micro Computer from $40.00 to $47.00 and gave the company a "neutral" rating in a research note on Thursday, July 3rd. Finally, Raymond James Financial initiated coverage on Super Micro Computer in a research note on Wednesday, June 25th. They issued an "outperform" rating for the company. Three investment analysts have rated the stock with a sell rating, nine have assigned a hold rating, six have issued a buy rating and one has given a strong buy rating to the company. According to MarketBeat, Super Micro Computer currently has an average rating of "Hold" and an average price target of $44.75.

Super Micro Computer Stock Performance

The firm has a market capitalization of $26.77 billion, a price-to-earnings ratio of 27.05, a P/E/G ratio of 1.15 and a beta of 1.46. The company has a quick ratio of 3.32, a current ratio of 5.32 and a debt-to-equity ratio of 0.74. The stock has a 50-day moving average price of $48.88 and a 200 day moving average price of $41.89.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last released its quarterly earnings data on Tuesday, August 5th. The company reported $0.41 EPS for the quarter, missing analysts' consensus estimates of $0.44 by ($0.03). The business had revenue of $5.76 billion during the quarter, compared to analysts' expectations of $5.88 billion. Super Micro Computer had a net margin of 4.77% and a return on equity of 17.14%. The company's revenue was up 8.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $6.25 EPS. On average, analysts forecast that Super Micro Computer, Inc. will post 1.86 EPS for the current year.

Insider Buying and Selling

In related 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 transaction, 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 filing with the SEC, which is available through this link. Also, CFO David E. Weigand sold 67,000 shares of Super Micro Computer stock in a transaction that occurred on Tuesday, May 20th. The shares were sold at an average price of $44.02, for a total value of $2,949,340.00. Following the completion of the transaction, the chief financial officer owned 88,599 shares in the company, valued at $3,900,127.98. This trade represents a 43.06% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 1,067,000 shares of company stock worth $53,949,340 in the last quarter. 16.30% of the stock is owned by insiders.

Hedge Funds Weigh In On Super Micro Computer

Hedge funds and other institutional investors have recently bought and sold shares of the company. Robeco Institutional Asset Management B.V. purchased a new stake in shares of Super Micro Computer in the first quarter valued at about $5,408,000. Gibraltar Capital Management Inc. purchased a new stake in Super Micro Computer in the 1st quarter valued at approximately $205,000. Sequoia Financial Advisors LLC boosted its holdings in Super Micro Computer by 43.2% in the 1st quarter. Sequoia Financial Advisors LLC now owns 19,243 shares of the company's stock valued at $659,000 after purchasing an additional 5,804 shares in the last quarter. Capital Advisors Inc. OK boosted its stake in shares of Super Micro Computer by 39.8% in the first quarter. Capital Advisors Inc. OK now owns 47,251 shares of the company's stock valued at $1,618,000 after buying an additional 13,451 shares in the last quarter. Finally, Nuveen Asset Management LLC boosted its stake in shares of Super Micro Computer by 796.5% in the fourth quarter. Nuveen Asset Management LLC now owns 1,446,722 shares of the company's stock valued at $44,096,000 after buying an additional 1,285,355 shares in the last quarter. 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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