Super Micro Computer (NASDAQ:SMCI) Shares Up 7% - What's Next?

Key Points

• Super Micro Computer's stock rose 7% on Monday, with a closing price of $58.29 after a previous close of $54.47, although trading volume fell by 55% from its average.
• Analysts have mixed views on SMCI, with three analystsseven analysts$42.89.
• The company's recent quarterly earnings showed a slight beat with an EPS of $0.31, exceeding expectations by $0.01, while also reporting a revenue decline from the previous year despite a year-over-year revenue growth of 19.5%.

Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) shot up 7% during mid-day trading on Monday . The stock traded as high as $59.05 and last traded at $58.29. 25,362,419 shares traded hands during mid-day trading, a decline of 55% from the average session volume of 56,993,758 shares. The stock had previously closed at $54.47.

Wall Street Analysts Forecast Growth

Several brokerages have recently issued reports on SMCI. Barclays reiterated an "equal weight" rating and issued a $34.00 target price on shares of Super Micro Computer in a research report on Tuesday, May 6th. Mizuho lifted their target price on shares of Super Micro Computer from $40.00 to $47.00 and gave the company a "neutral" rating in a research report on Thursday, July 3rd. Citigroup reiterated a "neutral" rating and issued a $52.00 target price (up previously from $37.00) on shares of Super Micro Computer in a research report on Friday, July 11th. Northland Securities set a $59.00 target price on shares of Super Micro Computer in a research report on Wednesday, May 7th. Finally, JPMorgan Chase & Co. boosted their price target on shares of Super Micro Computer from $35.00 to $46.00 and gave the stock a "neutral" rating in a research report on Thursday, July 17th. Three equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating, seven have assigned a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $42.89.

Super Micro Computer Stock Up 4.7%

The company has a debt-to-equity ratio of 0.38, a current ratio of 6.66 and a quick ratio of 3.95. The business's 50 day simple moving average is $46.56 and its 200 day simple moving average is $40.33. The company has a market capitalization of $36.62 billion, a PE ratio of 32.35, a P/E/G ratio of 2.92 and a beta of 1.43.

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

Insider Transactions at Super Micro Computer

In other news, CFO David E. Weigand sold 67,000 shares of the company's stock in a transaction that occurred on Tuesday, May 20th. The shares were sold at an average price of $44.02, for a total value of $2,949,340.00. Following the transaction, the chief financial officer directly owned 88,599 shares in the company, valued at approximately $3,900,127.98. This represents a 43.06% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO Charles Liang sold 300,000 shares of the company's stock in a transaction that occurred on 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 completion of the transaction, the chief executive officer owned 66,903,640 shares in the company, valued at approximately $3,010,663,800. This represents a 0.45% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 667,000 shares of company stock worth $29,949,340. 17.60% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Super Micro Computer

Several large investors have recently made changes to their positions in SMCI. Eastern Bank acquired a new position in shares of Super Micro Computer in the 1st quarter worth approximately $29,000. Bernard Wealth Management Corp. acquired a new position in shares of Super Micro Computer in the 4th quarter worth approximately $33,000. Quarry LP acquired a new position in shares of Super Micro Computer in the 4th quarter worth approximately $34,000. Central Pacific Bank Trust Division acquired a new stake in Super Micro Computer during the 1st quarter worth approximately $34,000. Finally, Beaird Harris Wealth Management LLC acquired a new stake in Super Micro Computer during the 1st quarter worth approximately $34,000. 84.06% of the stock is currently owned by institutional investors and hedge funds.

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.