Super Micro Computer (NASDAQ:SMCI) Trading Down 4.8% - Time to Sell?

Key Points

• Super Micro Computer's share price declined by 4.8% to $41.87, significantly lower than its average daily trading volume.
• Analysts have mixed ratings: Barclays raised the price target to $45, while Zacks upgraded it to a "hold," with an average price target of $45.31.
• The company reported a net margin of 4.77% and a revenue of $5.76 billion for the last quarter, missing estimates slightly.

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report)'s share price dropped 4.8% on Friday . The company traded as low as $41.46 and last traded at $41.87. Approximately 12,900,441 shares were traded during trading, a decline of 76% from the average daily volume of 54,110,547 shares. The stock had previously closed at $43.97.

Analyst Ratings Changes

SMCI has been the topic of a number of recent research reports. Barclays raised their price target on shares of Super Micro Computer from $29.00 to $45.00 and gave the company an "equal weight" rating in a report on Thursday, August 7th. Raymond James Financial initiated coverage on shares of Super Micro Computer in a report on Wednesday, June 25th. They set an "outperform" rating on the stock. Needham & Company LLC raised their price target on shares of Super Micro Computer from $39.00 to $60.00 and gave the company a "buy" rating in a report on Wednesday, August 6th. Citigroup restated a "neutral" rating and issued a $52.00 price objective (up from $37.00) on shares of Super Micro Computer in a research note on Friday, July 11th. Finally, Zacks Research upgraded shares of Super Micro Computer to a "hold" rating in a research note on Monday, August 11th. One research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, eight have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, Super Micro Computer has an average rating of "Hold" and an average price target of $45.31.

Super Micro Computer Trading Down 4.9%

The company has a market cap of $24.96 billion, a price-to-earnings ratio of 25.20, a PEG ratio of 1.12 and a beta of 1.46. The company has a debt-to-equity ratio of 0.74, a quick ratio of 3.32 and a current ratio of 5.32. The business's 50 day moving average price is $49.06 and its 200-day moving average price is $42.76.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last announced its quarterly earnings data 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 business had revenue of $5.76 billion during the quarter, compared to analyst estimates of $5.88 billion. During the same quarter in the prior year, the company posted $6.25 EPS. The company's quarterly revenue was up 8.5% compared to the same quarter last year. Super Micro Computer has set its Q1 2026 guidance at 0.400-0.520 EPS. FY 2026 guidance at EPS. On average, research analysts forecast that Super Micro Computer, Inc. will post 1.86 EPS for the current year.

Insider Transactions at Super Micro Computer

In other news, CEO Charles Liang sold 200,000 shares of the company's stock in a transaction dated 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 sale, the chief executive officer owned 40,426,120 shares of the company's stock, valued at approximately $2,425,567,200. This represents a 0.49% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Liang Chiu-Chu Sara Liu sold 200,000 shares of the company'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 sale, the director directly owned 40,426,120 shares in the company, valued at approximately $2,425,567,200. The trade was a 0.49% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 1,040,000 shares of company stock valued at $52,755,200. 16.30% of the stock is owned by insiders.

Institutional Investors Weigh In On Super Micro Computer

A number of hedge funds have recently added to or reduced their stakes in SMCI. Thrivent Financial for Lutherans boosted its stake in shares of Super Micro Computer by 25.9% in the 2nd quarter. Thrivent Financial for Lutherans now owns 24,847 shares of the company's stock valued at $1,211,000 after purchasing an additional 5,109 shares during the last quarter. Pathway Financial Advisers LLC bought a new position in shares of Super Micro Computer in the 2nd quarter valued at about $387,000. B. Riley Wealth Advisors Inc. bought a new position in shares of Super Micro Computer in the 2nd quarter valued at about $1,169,000. Marex Group plc bought a new position in shares of Super Micro Computer in the 2nd quarter valued at about $14,118,000. Finally, Advisory Services Network LLC boosted its stake in shares of Super Micro Computer by 4.3% in the 2nd quarter. Advisory Services Network LLC now owns 111,324 shares of the company's stock valued at $5,456,000 after purchasing an additional 4,551 shares during 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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