Super Micro Computer (NASDAQ:SMCI) Stock Price Down 3.6% - Should You Sell?

Key Points

• Super Micro Computer's stock price declined by 3.6% to $56.83, with trading volume down 68% from its average.
• Analysts have mixed opinions on the stock, with ratings ranging from sell to strong buy, while the average target price is $42.89.
• The recent quarterly earnings report showed a 19.5% year-over-year revenue increase, but actual revenue fell short of expectations, leading to uncertainty among investors.

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) was down 3.6% on Friday . The stock traded as low as $55.07 and last traded at $56.83. Approximately 18,407,710 shares changed hands during mid-day trading, a decline of 68% from the average daily volume of 57,008,363 shares. The stock had previously closed at $58.97.

Wall Street Analyst Weigh In

A number of research analysts recently commented on the company. KGI Securities assumed coverage on Super Micro Computer in a report on Wednesday, May 7th. They issued a "neutral" rating for the company. Rosenblatt Securities reduced their price target on Super Micro Computer from $55.00 to $50.00 and set a "buy" rating for the company in a report on Wednesday, May 7th. Wall Street Zen raised Super Micro Computer to a "sell" rating in a report on Thursday, May 8th. Northland Securities set a $59.00 price target on Super Micro Computer in a report on Wednesday, May 7th. Finally, Raymond James Financial assumed coverage on Super Micro Computer in a report on Wednesday, June 25th. They issued an "outperform" rating for the company. Three analysts have rated the stock with a sell rating, seven have issued a hold rating, seven have assigned a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $42.89.

Super Micro Computer Trading Down 4.9%

The company has a current ratio of 6.66, a quick ratio of 3.95 and a debt-to-equity ratio of 0.38. The stock has a market capitalization of $33.48 billion, a price-to-earnings ratio of 29.46, a PEG ratio of 2.96 and a beta of 1.43. The firm has a 50-day moving average of $47.29 and a 200 day moving average of $40.66.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last issued its quarterly earnings results on Tuesday, May 6th. The company reported $0.31 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.30 by $0.01. The company had revenue of $4.60 billion for the quarter, compared to analysts' expectations of $5.40 billion. Super Micro Computer had a return on equity of 20.41% and a net margin of 5.61%. The firm's revenue for the quarter was up 19.5% on a year-over-year basis. During the same period last year, the firm earned $0.66 EPS. As a group, equities analysts predict that Super Micro Computer, Inc. will post 1.86 EPS for the current fiscal year.

Insider Transactions at Super Micro Computer

In other news, Director Liang Chiu-Chu Sara Liu sold 200,000 shares of the firm's stock in a transaction on Monday, July 28th. The stock was sold at an average price of $60.00, for a total value of $12,000,000.00. Following the completion of the sale, the director owned 40,426,120 shares of the company's stock, valued at $2,425,567,200. This trade represents a 0.49% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, CFO David E. Weigand sold 67,000 shares of the firm's stock in a transaction on Tuesday, May 20th. The stock was sold at an average price of $44.02, for a total value of $2,949,340.00. Following the completion of the sale, the chief financial officer directly owned 88,599 shares of the company's stock, valued at approximately $3,900,127.98. This trade represents a 43.06% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 1,067,000 shares of company stock valued at $53,949,340 in the last three months. 17.60% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Super Micro Computer

Several institutional investors have recently bought and sold shares of SMCI. Vanguard Group Inc. increased its stake in shares of Super Micro Computer by 3.9% in the first quarter. Vanguard Group Inc. now owns 64,407,769 shares of the company's stock worth $2,205,322,000 after purchasing an additional 2,415,276 shares during the period. Geode Capital Management LLC increased its stake in shares of Super Micro Computer by 914.7% in the fourth quarter. Geode Capital Management LLC now owns 12,846,717 shares of the company's stock worth $390,572,000 after purchasing an additional 11,580,677 shares during the period. FMR LLC bought a new position in shares of Super Micro Computer in the fourth quarter worth about $292,869,000. Invesco Ltd. grew its position in Super Micro Computer by 929.5% during the fourth quarter. Invesco Ltd. now owns 7,542,742 shares of the company's stock worth $229,903,000 after buying an additional 6,810,082 shares in the last quarter. Finally, Northern Trust Corp grew its position in Super Micro Computer by 1,573.8% during the fourth quarter. Northern Trust Corp now owns 4,897,876 shares of the company's stock worth $149,287,000 after buying an additional 4,605,260 shares in the last quarter. 84.06% of the stock is currently owned by institutional investors.

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.

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