Super Micro Computer (NASDAQ:SMCI) Stock Price Up 5.5% - Should You Buy?

Key Points

• Super Micro Computer's stock increased by 5.5% on Monday, reaching a last traded price of $55.04, although trading volume declined by 30% compared to the average.
• Analyst ratings for the stock are mixed, with an average rating of "Hold" and a target price of $45.36, while one analyst rated it a Strong Buy.
• Insider trading activities indicate a significant decrease in holdings by company executives, with 490,000 shares sold worth nearly $27.9 million over the last 90 days.

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) rose 5.5% during trading on Monday . The company traded as high as $56.60 and last traded at $55.04. Approximately 34,744,009 shares traded hands during trading, a decline of 30% from the average daily volume of 49,879,914 shares. The stock had previously closed at $52.18.

Analyst Ratings Changes

Several equities research analysts recently issued reports on SMCI shares. Sanford C. Bernstein raised shares of Super Micro Computer to a "hold" rating in a research report on Tuesday, September 16th. Zacks Research raised shares of Super Micro Computer to a "hold" rating in a research report on Monday, August 11th. Bank of America started coverage on shares of Super Micro Computer in a research report on Wednesday, July 9th. They issued an "underperform" rating and a $35.00 target price on the stock. Citigroup reissued a "neutral" rating and issued a $52.00 target price (up from $37.00) on shares of Super Micro Computer in a research report on Friday, July 11th. Finally, JPMorgan Chase & Co. decreased their target price on shares of Super Micro Computer from $46.00 to $45.00 and set a "neutral" rating on the stock in a research report on Wednesday, August 6th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, ten have assigned a Hold rating and two have given a Sell rating to the company's stock. Based on data from MarketBeat.com, Super Micro Computer presently has an average rating of "Hold" and an average price target of $45.36.

Super Micro Computer Trading Up 5.5%

The stock has a market capitalization of $32.71 billion, a price-to-earnings ratio of 33.16, a PEG ratio of 1.30 and a beta of 1.55. The company has a debt-to-equity ratio of 0.74, a current ratio of 5.25 and a quick ratio of 3.25. The business's 50-day simple moving average is $46.83 and its two-hundred day simple moving average is $44.20.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last posted its earnings results on Tuesday, August 5th. The company reported $0.41 EPS for the quarter, missing analysts' consensus estimates 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 for the quarter, compared to analyst estimates of $5.88 billion. During the same period in the previous year, the firm posted $6.25 earnings per share. The company's revenue for the quarter was up 8.5% on a year-over-year basis. Super Micro Computer has set its Q1 2026 guidance at 0.400-0.520 EPS. FY 2026 guidance at EPS. On average, research analysts anticipate that Super Micro Computer, Inc. will post 1.86 earnings per share for the current fiscal year.

Insider Buying and Selling at Super Micro Computer

In other news, CFO David E. Weigand sold 25,000 shares of the company's stock in a transaction dated Monday, September 15th. The shares were sold at an average price of $45.14, for a total transaction of $1,128,500.00. Following the completion of the transaction, the chief financial officer owned 100,188 shares in the company, valued at approximately $4,522,486.32. This represents a 19.97% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, SVP George Kao sold 40,000 shares of the company's stock in a transaction dated Friday, August 22nd. The stock was sold at an average price of $43.88, for a total transaction of $1,755,200.00. Following the completion of the sale, the senior vice president directly owned 21,820 shares of the company's stock, valued at $957,461.60. The trade was a 64.70% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 490,000 shares of company stock worth $27,890,950 in the last ninety days. 16.30% of the stock is currently owned by company insiders.

Institutional Trading of Super Micro Computer

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Blue Trust Inc. raised its holdings in Super Micro Computer by 16.1% during 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 period. Hartford Investment Management Co. increased its holdings in shares of Super Micro Computer by 0.8% in the 2nd quarter. Hartford Investment Management Co. now owns 30,976 shares of the company's stock valued at $1,518,000 after purchasing an additional 235 shares during the period. Securian Asset Management Inc. increased its holdings in shares of Super Micro Computer by 0.9% in the 2nd quarter. Securian Asset Management Inc. now owns 26,834 shares of the company's stock valued at $1,315,000 after purchasing an additional 246 shares during the period. Wealthcare Advisory Partners LLC increased 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 purchasing an additional 248 shares during the period. Finally, TD Private Client Wealth LLC increased its holdings in shares of Super Micro Computer by 46.0% in the 2nd 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 and hedge funds 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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