Super Micro Computer (NASDAQ:SMCI) Trading Up 2.1% - Time to Buy?

Key Points

• Super Micro Computer's stock price rose by 2.1%, closing at $46.33 after a previous close of $45.37, despite a significant drop in trading volume which was down 88% from the average.
• Analysts have mixed views on the stock, with three giving it a sell rating, nine a hold rating, and six a buy rating; the average rating is Hold with a target price of $44.75.
• In recent quarterly earnings, Super Micro Computer missed earnings estimates with an EPS of $0.41 against a consensus of $0.44, reporting revenues of $5.76 billion versus expectations of $5.88 billion.

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report)'s stock price was up 2.1% during mid-day trading on Monday . The stock traded as high as $46.31 and last traded at $46.33. Approximately 6,860,850 shares traded hands during mid-day trading, a decline of 88% from the average daily volume of 55,889,176 shares. The stock had previously closed at $45.37.

Analyst Upgrades and Downgrades

Several analysts have issued reports on SMCI shares. Barclays upped their target price on Super Micro Computer from $29.00 to $45.00 and gave the company an "equal weight" rating in a report on Thursday, August 7th. KGI Securities started coverage on Super Micro Computer in a report on Wednesday, May 7th. They issued a "neutral" rating for the company. Citigroup restated a "neutral" rating and issued a $52.00 target price (up from $37.00) on shares of Super Micro Computer in a report on Friday, July 11th. Bank of America started coverage on Super Micro Computer in a report on Wednesday, July 9th. They issued an "underperform" rating and a $35.00 target price for the company. Finally, Raymond James Financial started coverage on Super Micro Computer in a report on Wednesday, June 25th. They issued an "outperform" rating for the company. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, nine have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $44.75.

Super Micro Computer Trading Down 0.7%

The company has a 50 day moving average of $49.01 and a 200-day moving average of $42.33. 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 stock has a market cap of $25.25 billion, a price-to-earnings ratio of 25.36, a price-to-earnings-growth ratio of 1.06 and a beta of 1.46.

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 (EPS) for the quarter, missing the consensus estimate 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 analyst estimates of $5.88 billion. During the same period in the previous year, the company posted $6.25 EPS. Super Micro Computer'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. On average, research analysts anticipate that Super Micro Computer, Inc. will post 1.86 earnings per share for the current year.

Insider Activity

In related news, Director Liang Chiu-Chu Sara Liu sold 300,000 shares of the stock in a transaction dated 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 director owned 66,903,640 shares of the company's stock, valued at approximately $3,010,663,800. This represents a 0.45% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Charles Liang sold 300,000 shares of the 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 transaction, the chief executive officer directly owned 66,903,640 shares in the company, valued at approximately $3,010,663,800. The trade was a 0.45% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders have sold 1,000,000 shares of company stock worth $51,000,000. 16.30% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Super Micro Computer

Hedge funds have recently bought and sold shares of the stock. Robeco Institutional Asset Management B.V. acquired a new stake in Super Micro Computer in the 1st quarter valued at about $5,408,000. Gibraltar Capital Management Inc. acquired a new stake in Super Micro Computer in the first quarter valued at $205,000. Sequoia Financial Advisors LLC raised its stake 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 valued at $659,000 after buying an additional 5,804 shares in the last quarter. Capital Advisors Inc. OK lifted its holdings 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 worth $1,618,000 after buying an additional 13,451 shares during the last quarter. Finally, Nuveen Asset Management LLC boosted its position in shares of Super Micro Computer by 796.5% during the 4th quarter. Nuveen Asset Management LLC now owns 1,446,722 shares of the company's stock worth $44,096,000 after acquiring an additional 1,285,355 shares in the last quarter. Institutional investors and hedge funds 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.