Super Micro Computer (NASDAQ:SMCI) Trading 2.4% Higher - Still a Buy?

Key Points

• Super Micro Computer's shares rose 2.4% to $41.01 with trading volume significantly down at 8.06 million shares, compared to the average of 53.07 million.
• Analysts have mixed views on SMCI, with Mizuho raising their price target to $47.00 and Needham & Company setting a buy rating with a target of $60.00, while Bank of America issued an underperform rating with a $35.00 target.
• Financial results showed a quarterly earnings miss, with EPS of $0.41, below expectations of $0.44, and a revenue of $5.76 billion, slightly below the forecast of $5.88 billion.

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) rose 2.4% during mid-day trading on Tuesday . The stock traded as high as $40.88 and last traded at $41.01. Approximately 8,059,982 shares changed hands during trading, a decline of 85% from the average daily volume of 53,068,215 shares. The stock had previously closed at $40.04.

Wall Street Analyst Weigh In

SMCI has been the topic of several analyst reports. Mizuho lifted their price objective on Super Micro Computer from $40.00 to $47.00 and gave the stock a "neutral" rating in a report on Thursday, July 3rd. JPMorgan Chase & Co. lowered their price target on Super Micro Computer from $46.00 to $45.00 and set a "neutral" rating for the company in a report on Wednesday, August 6th. Bank of America assumed coverage on Super Micro Computer in a report on Wednesday, July 9th. They issued an "underperform" rating and a $35.00 price target for the company. Raymond James Financial initiated coverage on Super Micro Computer in a report on Wednesday, June 25th. They issued an "outperform" rating for the company. Finally, Needham & Company LLC increased their target price on Super Micro Computer from $39.00 to $60.00 and gave the stock a "buy" rating 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, eight have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the company has an average rating of "Hold" and an average price target of $45.31.

Super Micro Computer Price Performance

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 company has a 50-day simple moving average of $48.34 and a two-hundred day simple moving average of $42.22. The stock has a market capitalization of $25.16 billion, a price-to-earnings ratio of 25.52, a price-to-earnings-growth ratio of 1.01 and a beta of 1.56.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last issued its quarterly 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). The business had revenue of $5.76 billion for the quarter, compared to analyst estimates of $5.88 billion. Super Micro Computer had a net margin of 4.77% and a return on equity of 17.14%. Super Micro Computer's revenue for the quarter was up 8.5% on a year-over-year basis. During the same period last year, the business posted $6.25 earnings per share. Super Micro Computer has set its Q1 2026 guidance at 0.400-0.520 EPS. FY 2026 guidance at EPS. On average, equities research analysts predict that Super Micro Computer, Inc. will post 1.86 earnings per share for the current year.

Insiders Place Their Bets

In other news, CEO Charles Liang sold 300,000 shares of the firm's stock in a transaction on Wednesday, June 18th. The stock was sold at an average price of $45.00, for a total transaction of $13,500,000.00. Following the transaction, the chief executive officer 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 document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CFO David E. Weigand sold 25,000 shares of the firm's stock in a transaction on Wednesday, September 3rd. The shares were sold at an average price of $40.29, for a total value of $1,007,250.00. Following the transaction, the chief financial officer directly owned 100,188 shares in the company, valued at $4,036,574.52. This trade represents a 19.97% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 1,065,000 shares of company stock valued at $53,762,450 over the last three months. 16.30% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the company. Robeco Institutional Asset Management B.V. bought a new position in Super Micro Computer during the first quarter valued at about $5,408,000. AlphaQuest LLC boosted its stake in Super Micro Computer by 352.4% during the first quarter. AlphaQuest LLC now owns 4,927 shares of the company's stock valued at $169,000 after buying an additional 3,838 shares in the last quarter. Gibraltar Capital Management Inc. bought a new position in Super Micro Computer during the first quarter valued at about $205,000. Sequoia Financial Advisors LLC boosted its stake in Super Micro Computer by 43.2% during the first quarter. Sequoia Financial Advisors LLC now owns 19,243 shares of the company's stock valued at $659,000 after buying an additional 5,804 shares in the last quarter. Finally, Capital Advisors Inc. OK boosted its stake in Super Micro Computer by 39.8% during the first quarter. Capital Advisors Inc. OK now owns 47,251 shares of the company's stock valued at $1,618,000 after buying an additional 13,451 shares in the last quarter. 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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