Super Micro Computer (NASDAQ:SMCI) Trading Down 4.2% - Here's Why

Key Points

• Super Micro Computer shares fell by 4.2% during mid-day trading, reaching a low of $50.03 before closing at $52.50.
• Analysts have a consensus rating of "Hold" for Super Micro Computer, with a target price averaging $45.36, reflecting varying assessments across several research firms.
• The company reported $0.41 earnings per share for the last quarter, missing analysts' expectations, and had a revenue of $5.76 billion, which was lower than forecasts of $5.88 billion.

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) dropped 4.2% during mid-day trading on Wednesday . The stock traded as low as $50.03 and last traded at $52.50. Approximately 34,218,195 shares were traded during trading, a decline of 31% from the average daily volume of 49,753,008 shares. The stock had previously closed at $54.82.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently weighed in on the company. JPMorgan Chase & Co. lowered their target price on Super Micro Computer from $46.00 to $45.00 and set a "neutral" rating for the company in a research note on Wednesday, August 6th. Wall Street Zen raised Super Micro Computer from a "sell" rating to a "hold" rating in a research note on Saturday. Sanford C. Bernstein raised Super Micro Computer to a "hold" rating in a research note on Tuesday, September 16th. The Goldman Sachs Group boosted their target price on Super Micro Computer from $24.00 to $27.00 and gave the company a "sell" rating in a research note on Wednesday, August 6th. Finally, Citigroup restated a "neutral" rating and set a $52.00 price target (up previously from $37.00) on shares of Super Micro Computer in a report on Friday, July 11th. One equities research 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. According to MarketBeat.com, Super Micro Computer presently has a consensus rating of "Hold" and an average target price of $45.36.

Super Micro Computer Price Performance

The business has a fifty day simple moving average of $47.20 and a two-hundred day simple moving average of $44.45. The company has a current ratio of 5.25, a quick ratio of 3.25 and a debt-to-equity ratio of 0.74. The stock has a market cap of $31.20 billion, a PE ratio of 31.63, a P/E/G ratio of 1.37 and a beta of 1.55.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last posted its earnings results on Tuesday, August 5th. The company reported $0.41 earnings per share 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 analysts' expectations of $5.88 billion. During the same quarter last year, the company posted $6.25 EPS. The firm's revenue 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. Research analysts forecast that Super Micro Computer, Inc. will post 1.86 earnings per share for the current year.

Insider Transactions at Super Micro Computer

In other Super Micro Computer news, SVP George Kao sold 40,000 shares of the company's stock in a transaction that occurred on 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 transaction, the senior vice president owned 21,820 shares in the company, valued at approximately $957,461.60. This represents a 64.70% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible 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 stock was sold at an average price of $60.00, for a total value of $12,000,000.00. Following the transaction, the chief executive officer owned 40,426,120 shares in the company, valued at $2,425,567,200. This trade represents a 0.49% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 490,000 shares of company stock worth $27,890,950 over the last quarter. Insiders own 16.30% of the company's stock.

Institutional Trading of Super Micro Computer

Several hedge funds and other institutional investors have recently made changes to their positions in SMCI. Anfield Capital Management LLC purchased a new stake in shares of Super Micro Computer in the 2nd quarter worth approximately $25,000. Twin Peaks Wealth Advisors LLC purchased a new stake in shares of Super Micro Computer in the 2nd quarter worth approximately $25,000. Eastern Bank purchased a new stake in shares of Super Micro Computer in the 1st quarter worth approximately $29,000. Armstrong Advisory Group Inc. purchased a new stake in shares of Super Micro Computer in the 3rd quarter worth approximately $29,000. Finally, Beaird Harris Wealth Management LLC purchased a new stake in shares of Super Micro Computer in the 1st quarter worth approximately $34,000. 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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