Super Micro Computer (NASDAQ:SMCI) Trading Up 1.2% - Here's Why

Key Points

• Super Micro Computer, Inc. shares rose by 1.2% on Friday, with the last trading price at $53.17, although trading volume was significantly lower than average.
• Analysts have mixed ratings on the stock, with an average rating of "Hold" and a consensus price target of $42.89.
• The company reported a 19.5% increase in quarterly revenue year-over-year, although it missed revenue estimates by over $800 million.
• Insider trading activity includes significant sales by CEO Charles Liang and CFO David E. Weigand, indicating potential concerns about the company’s stock performance.

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) shares rose 1.2% during mid-day trading on Friday . The company traded as high as $53.34 and last traded at $53.17. Approximately 8,127,890 shares traded hands during trading, a decline of 86% from the average daily volume of 57,078,980 shares. The stock had previously closed at $52.52.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on SMCI. Raymond James Financial began coverage on Super Micro Computer in a report on Wednesday, June 25th. They issued an "outperform" rating for the company. Barclays reaffirmed an "equal weight" rating and issued a $34.00 target price on shares of Super Micro Computer in a report on Tuesday, May 6th. Wall Street Zen upgraded Super Micro Computer to a "sell" rating in a research note on Thursday, May 8th. Mizuho raised their target price on Super Micro Computer from $40.00 to $47.00 and gave the stock a "neutral" rating in a research note on Thursday, July 3rd. Finally, Rosenblatt Securities lowered their price objective on Super Micro Computer from $55.00 to $50.00 and set a "buy" rating on the stock in a research report on Wednesday, May 7th. Three investment analysts have rated the stock with a sell rating, seven have assigned a hold rating, seven have given a buy rating and one has issued a strong buy rating to the stock. Based on data from MarketBeat, Super Micro Computer currently has a consensus rating of "Hold" and an average price target of $42.89.

Super Micro Computer Stock Performance

The company has a market capitalization of $32.51 billion, a P/E ratio of 28.65, a price-to-earnings-growth ratio of 2.65 and a beta of 1.43. The company's 50 day moving average is $45.94 and its 200-day moving average is $39.96. The company has a current ratio of 6.66, a quick ratio of 3.95 and a debt-to-equity ratio of 0.38.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last released its earnings results on Tuesday, May 6th. The company reported $0.31 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.30 by $0.01. The firm had revenue of $4.60 billion during the quarter, compared to analyst estimates of $5.40 billion. Super Micro Computer had a net margin of 5.61% and a return on equity of 20.41%. The business's revenue was up 19.5% on a year-over-year basis. During the same period last year, the business earned $0.66 earnings per share. Equities analysts anticipate that Super Micro Computer, Inc. will post 1.86 EPS for the current fiscal year.

Insider Transactions at Super Micro Computer

In other news, Director Liang Chiu-Chu Sara Liu sold 300,000 shares of Super Micro Computer stock in a transaction dated Wednesday, June 18th. The stock was sold at an average price of $45.00, for a total value of $13,500,000.00. Following the completion of the transaction, the director owned 66,903,640 shares of the company's stock, valued at $3,010,663,800. The trade was a 0.45% 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, CFO David E. Weigand sold 67,000 shares of the firm's stock in a transaction dated Tuesday, May 20th. The shares were sold at an average price of $44.02, for a total transaction of $2,949,340.00. Following the sale, the chief financial officer owned 88,599 shares of the company's stock, valued at approximately $3,900,127.98. This represents a 43.06% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 667,000 shares of company stock valued at $29,949,340. Insiders own 17.60% of the company's stock.

Institutional Trading of Super Micro Computer

Institutional investors have recently added to or reduced their stakes in the business. Robeco Institutional Asset Management B.V. purchased a new stake in shares of Super Micro Computer during the first quarter valued at $5,408,000. Gibraltar Capital Management Inc. bought a new position in Super Micro Computer during the first quarter valued at approximately $205,000. Sequoia Financial Advisors LLC boosted its holdings in Super Micro Computer by 43.2% in the first quarter. Sequoia Financial Advisors LLC now owns 19,243 shares of the company's stock worth $659,000 after purchasing an additional 5,804 shares during the last quarter. LPL Financial LLC grew its position in Super Micro Computer by 561.3% in the 4th quarter. LPL Financial LLC now owns 675,605 shares of the company's stock worth $20,592,000 after purchasing an additional 573,439 shares during the period. Finally, Capital Advisors Inc. OK raised its stake in Super Micro Computer by 39.8% during the 1st 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 during the last quarter. 84.06% of the stock is currently owned by hedge funds and other institutional investors.

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.