Super Micro Computer (NASDAQ:SMCI) Stock Price Down 7.4% - What's Next?

Key Points

• Shares fell 7.4% mid-day to about $35 (low $34.78) on ~37.17M shares traded, a 23% drop from average volume, after closing the prior session at $37.91.
• The company missed quarterly estimates, reporting $0.35 EPS versus $0.46 expected and revenue of $5.02B vs. $6.48B expected (down 15.5% YoY), and set Q2 FY2026 EPS guidance of $0.460–$0.540.
• Analysts have trimmed targets and issued mixed ratings (average rating: Hold, average price target $48.38), while insiders sold ~90,000 shares recently and institutional ownership remains high at ~84%.

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) dropped 7.4% during mid-day trading on Thursday . The company traded as low as $34.78 and last traded at $35.09. Approximately 37,171,735 shares traded hands during mid-day trading, a decline of 23% from the average daily volume of 48,367,008 shares. The stock had previously closed at $37.91.

Wall Street Analyst Weigh In

SMCI has been the topic of a number of research reports. The Goldman Sachs Group set a $34.00 price objective on shares of Super Micro Computer and gave the stock a "sell" rating in a research report on Wednesday, November 5th. Mizuho cut their price target on shares of Super Micro Computer from $50.00 to $45.00 and set a "neutral" rating on the stock in a research report on Wednesday, November 5th. Needham & Company LLC reduced their price objective on shares of Super Micro Computer from $60.00 to $51.00 and set a "buy" rating for the company in a research note on Wednesday, November 5th. Raymond James Financial lowered their target price on Super Micro Computer from $53.00 to $50.00 and set an "outperform" rating on the stock in a research report on Wednesday, November 5th. Finally, Wall Street Zen upgraded Super Micro Computer from a "sell" rating to a "hold" rating in a report on Saturday, October 18th. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, seven have issued a Hold rating and three have given a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Hold" and an average price target of $48.38.

Super Micro Computer Price Performance

The firm has a market capitalization of $20.95 billion, a price-to-earnings ratio of 21.14, a P/E/G ratio of 1.30 and a beta of 1.50. The company's 50 day moving average is $48.18 and its 200-day moving average is $46.03. The company has a current ratio of 5.25, a quick ratio of 3.25 and a debt-to-equity ratio of 0.74.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last announced its quarterly earnings results on Tuesday, November 4th. The company reported $0.35 earnings per share for the quarter, missing analysts' consensus estimates of $0.46 by ($0.11). Super Micro Computer had a return on equity of 17.14% and a net margin of 4.77%.The business had revenue of $5.02 billion for the quarter, compared to analyst estimates of $6.48 billion. During the same period last year, the firm earned $0.73 EPS. Super Micro Computer's quarterly revenue was down 15.5% compared to the same quarter last year. Super Micro Computer has set its Q2 2026 guidance at 0.460-0.540 EPS. FY 2026 guidance at EPS. Equities research analysts anticipate that Super Micro Computer, Inc. will post 1.86 earnings per share for the current year.

Insiders Place Their Bets

In other news, SVP George Kao sold 40,000 shares of the stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $43.88, for a total value of $1,755,200.00. Following the transaction, the senior vice president directly owned 21,820 shares of the company's stock, valued at $957,461.60. This represents a 64.70% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO David E. Weigand sold 25,000 shares of the firm's stock in a transaction dated Monday, September 15th. The stock was sold at an average price of $45.14, for a total transaction of $1,128,500.00. Following the sale, the chief financial officer owned 100,188 shares of the company's stock, valued at approximately $4,522,486.32. This represents a 19.97% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 90,000 shares of company stock worth $3,890,950. 16.30% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the stock. Vanguard Group Inc. increased its stake in shares of Super Micro Computer by 4.1% during the third quarter. Vanguard Group Inc. now owns 68,848,777 shares of the company's stock worth $3,300,610,000 after purchasing an additional 2,695,829 shares during the period. Geode Capital Management LLC boosted its stake in Super Micro Computer by 2.7% in the 2nd quarter. Geode Capital Management LLC now owns 13,752,581 shares of the company's stock valued at $671,316,000 after purchasing an additional 364,411 shares during the period. Disciplined Growth Investors Inc. MN grew its holdings in Super Micro Computer by 16.5% in the 2nd quarter. Disciplined Growth Investors Inc. MN now owns 9,730,773 shares of the company's stock valued at $476,905,000 after buying an additional 1,381,046 shares in the last quarter. Invesco Ltd. increased its position in Super Micro Computer by 31.6% during the 2nd quarter. Invesco Ltd. now owns 8,639,784 shares of the company's stock worth $423,436,000 after buying an additional 2,073,978 shares during the period. Finally, Charles Schwab Investment Management Inc. increased its position in Super Micro Computer by 5.3% during the 2nd quarter. Charles Schwab Investment Management Inc. now owns 3,971,739 shares of the company's stock worth $194,655,000 after buying an additional 200,109 shares during the period. 84.06% of the stock is 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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