Super Micro Computer (NASDAQ:SMCI) Trading 1.2% Higher - Here's What Happened

Key Points

• Super Micro Computer's shares rose by 1.2%, trading at $45.76, despite a significant drop in trading volume, down 82% from the average daily volume.
• Analysts have mixed views on the stock, with price targets ranging from $27.00 to $60.00, reflecting a mix of sell, hold, and buy ratings.
• During the last quarter, insiders sold a total of 1,067,000 shares valued at approximately $53.9 million, indicating potential concern from executives regarding stock performance.

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) shares rose 1.2% on Tuesday . The company traded as high as $46.15 and last traded at $45.76. Approximately 10,378,868 shares were traded during trading, a decline of 82% from the average daily volume of 56,697,656 shares. The stock had previously closed at $45.20.

Analysts Set New Price Targets

SMCI has been the subject of a number of recent research reports. Wedbush reissued a "neutral" rating and set a $30.00 price objective on shares of Super Micro Computer in a research note on Monday, August 4th. The Goldman Sachs Group boosted their price objective on shares of Super Micro Computer from $24.00 to $27.00 and gave the company a "sell" rating in a research note on Wednesday, August 6th. Needham & Company LLC boosted their price objective on shares of Super Micro Computer from $39.00 to $60.00 and gave the company a "buy" rating in a research note on Wednesday, August 6th. Bank of America began coverage on shares of Super Micro Computer in a research note on Wednesday, July 9th. They set an "underperform" rating and a $35.00 price objective for the company. Finally, Barclays boosted their price objective on shares of Super Micro Computer from $29.00 to $45.00 and gave the company an "equal weight" rating in a research note on Thursday, August 7th. Three equities research analysts have rated the stock with a sell rating, eight have assigned a hold rating, six have given a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, the stock has an average rating of "Hold" and an average target price of $44.75.

Super Micro Computer Trading Up 2.5%

The firm has a market cap of $27.64 billion, a price-to-earnings ratio of 27.90, a price-to-earnings-growth ratio of 1.14 and a beta of 1.46. The business's 50 day moving average price is $48.69 and its 200-day moving average price is $41.71. The company has a debt-to-equity ratio of 0.74, a quick ratio of 3.32 and a current ratio of 5.32.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last issued its earnings results on Tuesday, August 5th. The company reported $0.41 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.44 by ($0.03). Super Micro Computer had a net margin of 4.77% and a return on equity of 17.14%. The company had revenue of $5.76 billion during the quarter, compared to analyst estimates of $5.88 billion. During the same quarter last year, the company posted $6.25 EPS. The business's revenue for the quarter was up 8.5% compared to the same quarter last year. Equities analysts expect that Super Micro Computer, Inc. will post 1.86 EPS for the current year.

Insider Activity at Super Micro Computer

In related news, Director Liang Chiu-Chu Sara Liu sold 200,000 shares of the business's stock in a transaction dated Monday, July 28th. The shares were sold at an average price of $60.00, for a total transaction 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 represents a 0.49% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Charles Liang sold 200,000 shares of the stock in a transaction that occurred 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 transaction, the chief executive officer directly 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 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 quarter. Insiders own 16.30% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in SMCI. Northern Trust Corp boosted its holdings in shares of Super Micro Computer by 1,573.8% in the fourth quarter. Northern Trust Corp now owns 4,897,876 shares of the company's stock valued at $149,287,000 after acquiring an additional 4,605,260 shares in the last quarter. Marshall Wace LLP boosted its holdings in Super Micro Computer by 416,945.0% during the fourth quarter. Marshall Wace LLP now owns 3,753,405 shares of the company's stock worth $114,404,000 after buying an additional 3,752,505 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its holdings in Super Micro Computer by 6,368.8% during the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 2,815,996 shares of the company's stock worth $85,832,000 after buying an additional 2,772,464 shares in the last quarter. Vanguard Group Inc. boosted its holdings in Super Micro Computer by 3.9% during the first quarter. Vanguard Group Inc. now owns 64,407,769 shares of the company's stock worth $2,205,322,000 after buying an additional 2,415,276 shares in the last quarter. Finally, Nuveen LLC bought a new stake in Super Micro Computer during the first quarter worth approximately $53,031,000. 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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