Super Micro Computer (NASDAQ:SMCI) Stock Price Up 3.6% - Still a Buy?

Key Points

• Super Micro Computer's stock price increased by 3.6%, trading at $60.77, despite a significant decline in trading volume compared to its average.
• Analysts have mixed ratings for the stock, with a consensus rating of "Hold" and an average price target of $42.89.
• Insider trading saw both the Director and CEO selling 300,000 shares each, leading to a decline in their ownership by 0.45%.

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) shot up 3.6% on Wednesday . The stock traded as high as $62.28 and last traded at $60.77. 21,846,320 shares were traded during mid-day trading, a decline of 62% from the average session volume of 57,130,430 shares. The stock had previously closed at $58.63.

Analysts Set New Price Targets

A number of analysts have recently commented on SMCI shares. Wall Street Zen upgraded shares of Super Micro Computer to a "sell" rating in a research note on Thursday, May 8th. Needham & Company LLC reaffirmed a "buy" rating and issued a $39.00 price objective on shares of Super Micro Computer in a report on Wednesday, May 7th. Raymond James Financial began coverage on Super Micro Computer in a report on Wednesday, June 25th. They issued an "outperform" rating on the stock. Citigroup restated a "neutral" rating and set a $52.00 price target (up from $37.00) on shares of Super Micro Computer in a research note on Friday, July 11th. Finally, Mizuho increased their price objective on shares of Super Micro Computer from $40.00 to $47.00 and gave the stock a "neutral" rating in a research note on Thursday, July 3rd. Three analysts have rated the stock with a sell rating, seven have assigned a hold rating, seven have issued a buy rating and one has assigned a strong buy rating to the company. Based on data from MarketBeat, Super Micro Computer presently has a consensus rating of "Hold" and an average price target of $42.89.

Super Micro Computer Price Performance

The company has a quick ratio of 3.95, a current ratio of 6.66 and a debt-to-equity ratio of 0.38. The stock has a market cap of $35.98 billion, a PE ratio of 31.82, a P/E/G ratio of 2.92 and a beta of 1.43. The firm's fifty day moving average price is $46.56 and its 200 day moving average price is $40.33.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last released its earnings results on Tuesday, May 6th. The company reported $0.31 earnings per share for the quarter, beating the consensus estimate 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 the consensus estimate of $5.40 billion. During the same quarter in the previous year, the company posted $0.66 EPS. The company's revenue for the quarter was up 19.5% compared to the same quarter last year. As a group, equities analysts expect that Super Micro Computer, Inc. will post 1.86 EPS for the current fiscal year.

Insider Buying and Selling

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 shares were sold at an average price of $45.00, for a total transaction of $13,500,000.00. Following the transaction, the director directly owned 66,903,640 shares of the company's stock, valued at approximately $3,010,663,800. This trade represents a 0.45% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Charles Liang sold 300,000 shares of Super Micro Computer stock in a transaction dated 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 sale, the chief executive officer owned 66,903,640 shares of the company's stock, valued at $3,010,663,800. The trade was a 0.45% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 667,000 shares of company stock valued at $29,949,340. Insiders own 17.60% of the company's stock.

Institutional Trading of Super Micro Computer

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

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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