Super Micro Computer (NASDAQ:SMCI) Trading 2.3% Higher - Still a Buy?

Key Points

• Super Micro Computer's stock increased by 2.3% to $43.30, with trading volume significantly lower than average, indicating potential volatility.
• Analysts have varied opinions on the stock's future, with targets ranging from $27.00 to $55.00, reflecting a consensus rating of "Hold" and an average target price of $44.75.
• Insider transactions showed significant selling activity, as both the CEO and a director sold 200,000 shares each at $60.00, totaling $24 million, raising concerns about insider sentiment.

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) traded up 2.3% on Friday . The stock traded as high as $43.71 and last traded at $43.30. 9,034,616 shares changed hands during mid-day trading, a decline of 84% from the average session volume of 55,147,559 shares. The stock had previously closed at $42.31.

Analyst Ratings Changes

A number of brokerages have commented on SMCI. Barclays boosted their target price on shares of Super Micro Computer from $29.00 to $45.00 and gave the stock an "equal weight" rating in a report on Thursday, August 7th. The Goldman Sachs Group boosted their target price on shares of Super Micro Computer from $24.00 to $27.00 and gave the stock a "sell" rating in a report on Wednesday, August 6th. Rosenblatt Securities reduced their target price on shares of Super Micro Computer from $55.00 to $50.00 and set a "buy" rating for the company in a report on Wednesday, May 7th. KGI Securities began coverage on shares of Super Micro Computer in a report on Wednesday, May 7th. They issued a "neutral" rating for the company. Finally, Wall Street Zen upgraded shares of Super Micro Computer to a "sell" rating in a report on Thursday, May 8th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, nine have assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat, the stock currently has a consensus rating of "Hold" and an average target price of $44.75.

Super Micro Computer Trading Up 3.7%

The stock has a 50-day moving average of $48.99 and a 200 day moving average of $42.43. The stock has a market cap of $26.19 billion, a PE ratio of 26.43, a price-to-earnings-growth ratio of 1.06 and a beta of 1.46. The company has a quick ratio of 3.32, a current ratio of 5.32 and a debt-to-equity ratio of 0.74.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last announced 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). The business had revenue of $5.76 billion for the quarter, compared to analysts' expectations of $5.88 billion. Super Micro Computer had a net margin of 4.77% and a return on equity of 17.14%. The company's quarterly revenue was up 8.5% on a year-over-year basis. During the same quarter last year, the business earned $6.25 EPS. Super Micro Computer has set its Q1 2026 guidance at 0.400-0.520 EPS. FY 2026 guidance at EPS. As a group, sell-side analysts anticipate that Super Micro Computer, Inc. will post 1.86 earnings per share for the current year.

Insider Transactions at Super Micro Computer

In other news, Director Liang Chiu-Chu Sara Liu sold 200,000 shares of the business's stock in a transaction dated Monday, July 28th. The stock was sold at an average price of $60.00, for a total transaction of $12,000,000.00. Following the completion of the transaction, the director directly owned 40,426,120 shares of the company's stock, valued at approximately $2,425,567,200. The trade was a 0.49% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Charles Liang sold 200,000 shares of the company's stock in a transaction that occurred on Monday, July 28th. The shares were 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 have sold 1,000,000 shares of company stock worth $51,000,000 over the last quarter. Insiders own 16.30% of the company's stock.

Hedge Funds Weigh In On Super Micro Computer

A number of institutional investors and hedge funds have recently added to or reduced their stakes in SMCI. Blue Trust Inc. lifted its holdings in shares of Super Micro Computer by 16.1% in the second quarter. Blue Trust Inc. now owns 1,557 shares of the company's stock valued at $76,000 after purchasing an additional 216 shares in the last quarter. Hartford Investment Management Co. boosted its stake in shares of Super Micro Computer by 0.8% during the second quarter. Hartford Investment Management Co. now owns 30,976 shares of the company's stock valued at $1,518,000 after acquiring an additional 235 shares during the last quarter. Securian Asset Management Inc. boosted its stake 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 valued at $1,315,000 after acquiring an additional 246 shares during the last quarter. Wealthcare Advisory Partners LLC boosted its stake 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 valued at $1,068,000 after acquiring an additional 248 shares during the last quarter. Finally, TD Private Client Wealth LLC boosted its stake in shares of Super Micro Computer by 46.0% during the second quarter. TD Private Client Wealth LLC now owns 800 shares of the company's stock valued at $39,000 after acquiring an additional 252 shares during the last quarter. 84.06% of the stock is owned by institutional investors and hedge funds.

Super Micro Computer Company Profile

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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