Super Micro Computer (NASDAQ:SMCI) Trading 6.6% Higher - Time to Buy?

Key Points

• Super Micro Computer's stock rose 6.6% on Wednesday, reaching a trading price of $58.68, although the trading volume decreased by 13% compared to the average session volume.
• The company has received various ratings from analysts, with an average rating of "Hold" and a price target of $45.36, while some analysts have rated it a strong buy.
• In recent insider trading, SVP George Kao sold 40,000 shares at an average price of $43.88, indicating a significant 64.7% decrease in their ownership of the stock.

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) shot up 6.6% on Wednesday . The stock traded as high as $58.69 and last traded at $58.68. 44,444,175 shares changed hands during trading, a decline of 13% from the average session volume of 50,810,547 shares. The stock had previously closed at $55.07.

Wall Street Analyst Weigh In

Several equities research analysts recently commented on SMCI shares. Raymond James Financial assumed coverage on shares of Super Micro Computer in a research report on Wednesday, June 25th. They set an "outperform" rating on the stock. Zacks Research raised Super Micro Computer to a "hold" rating in a research note on Monday, August 11th. Barclays boosted their price target on shares of Super Micro Computer from $29.00 to $45.00 and gave the stock an "equal weight" rating in a research report on Thursday, August 7th. JPMorgan Chase & Co. dropped 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 report on Wednesday, August 6th. Finally, Bank of America initiated coverage on Super Micro Computer in a research note on Wednesday, July 9th. They issued an "underperform" rating and a $35.00 price objective on the stock. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, ten have issued a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Hold" and an average price target of $45.36.

Super Micro Computer Trading Up 6.6%

The stock has a market capitalization of $34.87 billion, a PE ratio of 35.35, a P/E/G ratio of 1.36 and a beta of 1.55. The firm has a 50 day moving average price of $46.69 and a 200 day moving average price of $43.12. The company has a quick ratio of 3.25, a current ratio of 5.25 and a debt-to-equity ratio of 0.74.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last released 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 company had revenue of $5.76 billion during 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% compared to the same quarter last year. During the same period in the previous year, the company 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. Equities analysts expect that Super Micro Computer, Inc. will post 1.86 EPS for the current fiscal year.

Insider Activity at Super Micro Computer

In other news, SVP George Kao sold 40,000 shares of Super Micro Computer stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $43.88, for a total value of $1,755,200.00. Following the completion of the transaction, the senior vice president owned 21,820 shares in the company, valued at $957,461.60. This trade represents a 64.70% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CEO Charles Liang sold 200,000 shares of Super Micro Computer stock in a transaction that occurred on 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 transaction, the chief executive officer owned 40,426,120 shares of the company's stock, valued at $2,425,567,200. This represents a 0.49% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 490,000 shares of company stock worth $27,890,950. 16.30% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in SMCI. Park Avenue Securities LLC purchased a new position in Super Micro Computer during the second quarter valued at approximately $310,000. Bank Hapoalim BM purchased a new position in shares of Super Micro Computer during the 2nd quarter valued at $748,000. Robeco Institutional Asset Management B.V. purchased a new position in Super Micro Computer during the first quarter worth about $5,408,000. AlphaQuest LLC grew its position in Super Micro Computer by 352.4% during the first quarter. AlphaQuest LLC now owns 4,927 shares of the company's stock worth $169,000 after buying an additional 3,838 shares in the last quarter. Finally, Public Employees Retirement System of Ohio grew its position in Super Micro Computer by 4.7% during the second quarter. Public Employees Retirement System of Ohio now owns 161,091 shares of the company's stock worth $7,895,000 after buying an additional 7,171 shares in 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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