Wedbush Reaffirms Neutral Rating for Super Micro Computer (NASDAQ:SMCI)

Key Points

• Wedbush has reaffirmed a "neutral" rating for Super Micro Computer (NASDAQ:SMCI) with a price target of $30.00, indicating a potential downside of 47.03% from the current stock price.
• Despite Wedbush's stance, other analysts show mixed ratings, with Needham & Company maintaining a "buy" rating and a price target of $39.00, while several firms have lowered their targets.
• Super Micro Computer reported earnings of $0.31 per share, beating expectations slightly, but its revenue fell short at $4.60 billion compared to the forecast of $5.40 billion.

Super Micro Computer (NASDAQ:SMCI - Get Free Report)'s stock had its "neutral" rating restated by Wedbush in a note issued to investors on Monday,Benzinga reports. They currently have a $30.00 price objective on the stock. Wedbush's price objective indicates a potential downside of 47.03% from the company's current price.

Several other brokerages have also commented on SMCI. Needham & Company LLC reaffirmed a "buy" rating and issued a $39.00 price target on shares of Super Micro Computer in a research note on Wednesday, May 7th. Rosenblatt Securities decreased their price target on Super Micro Computer from $55.00 to $50.00 and set a "buy" rating on the stock in a research note on Wednesday, May 7th. Wall Street Zen raised Super Micro Computer to a "sell" rating in a research note on Thursday, May 8th. Barclays reaffirmed an "equal weight" rating and issued a $34.00 price target on shares of Super Micro Computer in a research note on Tuesday, May 6th. Finally, JPMorgan Chase & Co. increased their target price on Super Micro Computer from $35.00 to $46.00 and gave the stock a "neutral" rating in a research note on Thursday, July 17th. Three research analysts have rated the stock with a sell rating, eight have issued a hold rating, six have given a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, the company has a consensus rating of "Hold" and a consensus price target of $42.89.

Super Micro Computer Trading Down 4.0%

Shares of SMCI opened at $56.64 on Monday. Super Micro Computer has a 52-week low of $17.25 and a 52-week high of $66.44. The company has a quick ratio of 3.95, a current ratio of 6.66 and a debt-to-equity ratio of 0.38. The firm's fifty day moving average is $47.62 and its two-hundred day moving average is $40.98. The stock has a market cap of $33.80 billion, a PE ratio of 29.79, a price-to-earnings-growth ratio of 2.76 and a beta of 1.46.

Super Micro Computer (NASDAQ:SMCI - Get Free Report) last issued 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 company had revenue of $4.60 billion during the quarter, compared to analysts' expectations of $5.40 billion. Super Micro Computer had a return on equity of 20.41% and a net margin of 5.61%. The firm's quarterly revenue was up 19.5% on a year-over-year basis. During the same period in the prior year, the business earned $0.66 EPS. Research analysts forecast that Super Micro Computer will post 1.86 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO Charles Liang sold 300,000 shares of the firm'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 transaction, the chief executive officer owned 66,903,640 shares in the company, valued at $3,010,663,800. This trade represents a 0.45% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO David E. Weigand sold 67,000 shares of Super Micro Computer 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 completion of the transaction, the chief financial officer owned 88,599 shares in the company, valued at $3,900,127.98. This trade represents a 43.06% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 1,067,000 shares of company stock worth $53,949,340 in the last quarter. 17.60% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Blue Trust Inc. grew its stake in shares of Super Micro Computer by 16.1% in the 2nd quarter. Blue Trust Inc. now owns 1,557 shares of the company's stock valued at $76,000 after purchasing an additional 216 shares during the last quarter. Hartford Investment Management Co. lifted its holdings in shares of Super Micro Computer by 0.8% in the 2nd quarter. Hartford Investment Management Co. now owns 30,976 shares of the company's stock valued at $1,518,000 after buying an additional 235 shares during the period. Securian Asset Management Inc. lifted its holdings in shares of Super Micro Computer by 0.9% in the 2nd quarter. Securian Asset Management Inc. now owns 26,834 shares of the company's stock valued at $1,315,000 after buying an additional 246 shares during the period. Wealthcare Advisory Partners LLC lifted its holdings in shares of Super Micro Computer by 1.2% in the 2nd quarter. Wealthcare Advisory Partners LLC now owns 21,798 shares of the company's stock valued at $1,068,000 after buying an additional 248 shares during the period. Finally, TD Private Client Wealth LLC lifted its holdings in shares of Super Micro Computer by 46.0% in the 2nd quarter. TD Private Client Wealth LLC now owns 800 shares of the company's stock valued at $39,000 after buying an additional 252 shares during the period. 84.06% of the stock is currently owned by hedge funds and other institutional investors.

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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