Super Micro Computer (NASDAQ:SMCI) Stock Price Down 2.3% - Here's Why

Key Points

• Super Micro Computer shares fell by 2.3% to $45.61, with trading volume significantly lower at 16.27 million shares compared to the average of 56.97 million shares.
• Despite the stock’s decline, analysts maintain a consensus rating of "Hold" with a target price of $44.75, reflecting mixed opinions on its future performance.
• In insider trading news, Director Liang Chiu-Chu Sara Liu sold 300,000 shares for $13.5 million, indicating notable insider activity amid the stock’s fluctuation.

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) shares fell 2.3% during mid-day trading on Friday . The company traded as low as $45.03 and last traded at $45.61. 16,267,531 shares changed hands during trading, a decline of 71% from the average session volume of 56,971,184 shares. The stock had previously closed at $46.67.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on SMCI. 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. Wall Street Zen raised Super Micro Computer to a "sell" rating in a research note on Thursday, May 8th. KGI Securities initiated coverage on shares of Super Micro Computer in a research report on Wednesday, May 7th. They set a "neutral" rating on the stock. Wedbush restated a "neutral" rating and set a $30.00 price target on shares of Super Micro Computer in a research report on Monday. Finally, The Goldman Sachs Group boosted their price objective on Super Micro Computer from $24.00 to $27.00 and gave the company a "sell" rating in a research report on Wednesday. Three research analysts have rated the stock with a sell rating, eight have issued a hold rating, six have assigned a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat, Super Micro Computer currently has a consensus rating of "Hold" and a consensus target price of $44.75.

Super Micro Computer Price Performance

The firm has a 50 day moving average price of $48.51 and a 200 day moving average price of $41.43. The stock has a market cap of $26.76 billion, a P/E ratio of 26.95, a P/E/G ratio of 2.28 and a beta of 1.46. The company has a quick ratio of 3.95, a current ratio of 5.32 and a debt-to-equity ratio of 0.74.

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 the consensus estimate of $5.88 billion. During the same period in the prior year, the company posted $6.25 EPS. The company's quarterly revenue was up 8.5% on a year-over-year basis. On average, analysts forecast 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 firm's stock in a transaction that occurred on 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 completion of the sale, the director 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 position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO David E. Weigand sold 67,000 shares of the stock in a transaction 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 sale, the chief financial officer owned 88,599 shares in the company, valued at $3,900,127.98. The trade was a 43.06% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 1,067,000 shares of company stock valued at $53,949,340. Corporate insiders own 17.60% of the company's stock.

Institutional Trading of Super Micro Computer

Several institutional investors have recently added to or reduced their stakes in SMCI. Blue Trust Inc. boosted its holdings in Super Micro Computer by 16.1% in the second quarter. Blue Trust Inc. now owns 1,557 shares of the company's stock worth $76,000 after acquiring an additional 216 shares in the last quarter. Hartford Investment Management Co. raised its stake in shares of Super Micro Computer by 0.8% in the second quarter. Hartford Investment Management Co. now owns 30,976 shares of the company's stock worth $1,518,000 after purchasing an additional 235 shares during the last quarter. Securian Asset Management Inc. increased its holdings in Super Micro Computer by 0.9% in the 2nd quarter. Securian Asset Management Inc. now owns 26,834 shares of the company's stock worth $1,315,000 after buying an additional 246 shares during the period. Wealthcare Advisory Partners LLC boosted its holdings in shares of Super Micro Computer by 1.2% in the 2nd quarter. Wealthcare Advisory Partners LLC now owns 21,798 shares of the company's stock valued at $1,068,000 after acquiring an additional 248 shares during the last quarter. Finally, TD Private Client Wealth LLC lifted its position in Super Micro Computer by 46.0% during the second quarter. TD Private Client Wealth LLC now owns 800 shares of the company's stock valued at $39,000 after purchasing an additional 252 shares during the period. Institutional investors own 84.06% of the company's stock.

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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