Super Micro Computer (NASDAQ:SMCI) Stock Price Up 3.4% - Should You Buy?

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report)'s stock price was up 3.4% during mid-day trading on Tuesday . The company traded as high as $48.73 and last traded at $48.69. Approximately 10,140,550 shares were traded during trading, a decline of 85% from the average daily volume of 68,955,886 shares. The stock had previously closed at $47.11.

Analysts Set New Price Targets

A number of research analysts recently issued reports on SMCI shares. The Goldman Sachs Group downgraded Super Micro Computer from a "neutral" rating to a "sell" rating and reduced their price target for the company from $40.00 to $32.00 in a report on Monday, March 24th. Needham & Company LLC restated a "buy" rating and set a $39.00 price target on shares of Super Micro Computer in a report on Wednesday, May 7th. Rosenblatt Securities reduced their price target on Super Micro Computer from $55.00 to $50.00 and set a "buy" rating on the stock in a report on Wednesday, May 7th. Northland Securities set a $59.00 price target on Super Micro Computer in a report on Wednesday, May 7th. Finally, KGI Securities started coverage on Super Micro Computer in a report on Wednesday, May 7th. They set a "neutral" rating on the stock. Three research analysts have rated the stock with a sell rating, ten have assigned a hold rating, seven have assigned a buy rating and one has issued a strong buy rating to the company. Based on data from MarketBeat, Super Micro Computer currently has an average rating of "Hold" and a consensus target price of $46.06.

Super Micro Computer Stock Performance

The company has a debt-to-equity ratio of 0.38, a quick ratio of 3.95 and a current ratio of 6.66. The business has a 50-day moving average price of $41.88 and a 200 day moving average price of $38.26. The stock has a market capitalization of $29.31 billion, a P/E ratio of 25.83 and a beta of 1.43.

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

Insider Buying and Selling

In related news, Director Liang Chiu-Chu Sara Liu sold 300,000 shares of the business's stock in a transaction that occurred on Wednesday, June 18th. The shares were sold at an average price of $45.00, for a total value of $13,500,000.00. Following the completion of the transaction, the director directly owned 66,903,640 shares in the company, valued at $3,010,663,800. The trade was a 0.45% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, CFO David E. Weigand sold 67,000 shares of the business's stock in a transaction that occurred on Tuesday, May 20th. The stock was sold at an average price of $44.02, for a total transaction of $2,949,340.00. Following the completion of the transaction, the chief financial officer owned 88,599 shares of the company's stock, valued at approximately $3,900,127.98. The trade was a 43.06% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 667,000 shares of company stock worth $29,949,340 in the last three months. Insiders own 17.60% of the company's stock.

Institutional Investors Weigh In On Super Micro Computer

A number of hedge funds have recently added to or reduced their stakes in the stock. Garde Capital Inc. raised its stake in Super Micro Computer by 42.1% during the 2nd quarter. Garde Capital Inc. now owns 1,013 shares of the company's stock valued at $50,000 after buying an additional 300 shares during the last quarter. Allspring Global Investments Holdings LLC raised its stake in Super Micro Computer by 1.3% during the 1st quarter. Allspring Global Investments Holdings LLC now owns 24,367 shares of the company's stock valued at $854,000 after buying an additional 302 shares during the last quarter. Fairscale Capital LLC raised its stake in Super Micro Computer by 13.3% during the 1st quarter. Fairscale Capital LLC now owns 2,698 shares of the company's stock valued at $92,000 after buying an additional 317 shares during the last quarter. Wahed Invest LLC raised its stake in Super Micro Computer by 2.9% during the 4th quarter. Wahed Invest LLC now owns 12,362 shares of the company's stock valued at $377,000 after buying an additional 352 shares during the last quarter. Finally, Horizon Investments LLC raised its stake in Super Micro Computer by 5.2% during the 1st quarter. Horizon Investments LLC now owns 7,234 shares of the company's stock valued at $248,000 after buying an additional 355 shares during the last quarter. 84.06% of the stock is currently owned by hedge funds and other 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.