Super Micro Computer (NASDAQ:SMCI) Price Target Raised to $27.00 at The Goldman Sachs Group

Key Points

• The Goldman Sachs Group raised its price target for Super Micro Computer from $24.00 to $27.00, indicating a potential downside of 40.51% from its previous close, while maintaining a "sell" rating on the stock.
• Multiple analysts have varying price targets for Super Micro Computer, with Mizuho setting a target of $47.00 and Needham & Company raising theirs to $60.00, reflecting general optimism despite the current "hold" rating consensus.
• Super Micro Computer's stock has experienced significant volatility, recently trading down 20.7% and reporting quarterly earnings that missed analyst estimates, with a net margin of 5.61% on revenue of $5.76 billion.

Super Micro Computer (NASDAQ:SMCI - Free Report) had its price target lifted by The Goldman Sachs Group from $24.00 to $27.00 in a research note released on Wednesday morning,Benzinga reports. They currently have a sell rating on the stock.

A number of other equities research analysts have also weighed in on the stock. Mizuho upped their target price on shares of Super Micro Computer from $40.00 to $47.00 and gave the stock a "neutral" rating in a report on Thursday, July 3rd. Barclays reissued an "equal weight" rating and set a $34.00 target price on shares of Super Micro Computer in a report on Tuesday, May 6th. Needham & Company LLC boosted their price target on shares of Super Micro Computer from $39.00 to $60.00 and gave the company a "buy" rating in a research report on Wednesday. Wall Street Zen raised shares of Super Micro Computer to a "sell" rating in a research note on Thursday, May 8th. Finally, Raymond James Financial initiated coverage on shares of Super Micro Computer in a research note on Wednesday, June 25th. They set an "outperform" rating for the company. Three analysts have rated the stock with a sell rating, eight have issued a hold rating, six have given a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat.com, Super Micro Computer presently has an average rating of "Hold" and an average price target of $44.75.

Super Micro Computer Price Performance

Shares of SMCI traded up $0.68 during mid-day trading on Wednesday, reaching $47.47. The company had a trading volume of 25,118,171 shares, compared to its average volume of 57,121,230. The company has a market capitalization of $28.33 billion, a P/E ratio of 28.49, a P/E/G ratio of 2.79 and a beta of 1.46. Super Micro Computer has a twelve month low of $17.25 and a twelve month high of $66.44. The company's 50-day moving average is $48.40 and its 200-day moving average is $41.32. The company has a debt-to-equity ratio of 0.38, a current ratio of 6.66 and a quick ratio of 3.95.

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 for the quarter, missing the consensus estimate of $0.44 by ($0.03). Super Micro Computer had a net margin of 4.77% and a return on equity of 17.24%. The company had revenue of $5.76 billion during the quarter, compared to the consensus estimate of $5.88 billion. During the same quarter in the previous year, the business earned $6.25 EPS. Super Micro Computer's revenue was up 8.5% on a year-over-year basis. On average, equities analysts anticipate that Super Micro Computer will post 1.86 EPS for the current year.

Insider Activity

In related news, Director Liang Chiu-Chu Sara Liu sold 300,000 shares of Super Micro Computer stock in a transaction dated Wednesday, June 18th. The shares were sold at an average price of $45.00, for a total transaction of $13,500,000.00. Following the sale, the director directly owned 66,903,640 shares in the company, valued at $3,010,663,800. The trade was a 0.45% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Charles Liang sold 300,000 shares of the business's 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 completion of the sale, the chief executive officer owned 66,903,640 shares in the company, valued at approximately $3,010,663,800. This trade represents a 0.45% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 1,067,000 shares of company stock valued at $53,949,340. 17.60% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Super Micro Computer

Several institutional investors and hedge funds have recently added to or reduced their stakes in SMCI. Eastern Bank acquired a new stake in 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 during the fourth quarter worth approximately $33,000. Quarry LP acquired a new position in shares of Super Micro Computer during the fourth quarter worth approximately $34,000. Central Pacific Bank Trust Division acquired a new position in shares of Super Micro Computer during the first quarter worth approximately $34,000. Finally, Beaird Harris Wealth Management LLC acquired a new position in shares of Super Micro Computer during the first quarter worth approximately $34,000. 84.06% of the stock is currently owned by institutional investors and hedge funds.

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.