Super Micro Computer (NASDAQ:SMCI) Shares Down 8.4% – Should You Sell?

Super Micro Computer, Inc. (NASDAQ:SMCI)’s stock price dropped 8.4% during mid-day trading on Monday . The stock traded as low as $36.38 and last traded at $36.74. 39,585,862 shares traded hands during trading, a decline of 11% from the average daily volume of 44,697,813 shares. The stock had previously closed at $40.10.

Analyst Ratings Changes

A number of research analysts have recently weighed in on the company. Stifel Nicolaus set a $42.00 price objective on Super Micro Computer in a research report on Wednesday, August 12th. Sanford C. Bernstein set a $42.00 target price on shares of Super Micro Computer in a report on Thursday, August 13th. The Goldman Sachs Group restated a “sell” rating and set a $34.00 price objective (up from $30.00) on shares of Super Micro Computer in a research report on Wednesday, August 12th. Mizuho set a $35.00 target price on shares of Super Micro Computer and gave the stock a “neutral” rating in a report on Wednesday, August 12th. Finally, Needham & Company LLC reiterated a “buy” rating and issued a $46.00 price target on shares of Super Micro Computer in a research note on Wednesday, August 12th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, eleven have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $42.13.

Super Micro Computer Stock Performance

The company has a debt-to-equity ratio of 0.65, a quick ratio of 2.07 and a current ratio of 3.87. The business’s fifty day simple moving average is $32.77 and its 200-day simple moving average is $31.52. The firm has a market capitalization of $24.14 billion, a PE ratio of 11.48, a price-to-earnings-growth ratio of 0.76 and a beta of 2.00.

Super Micro Computer (NASDAQ:SMCI) last released its earnings results on Tuesday, August 11th. The company reported $1.70 EPS for the quarter, topping the consensus estimate of $0.92 by $0.78. Super Micro Computer had a net margin of 5.71% and a return on equity of 27.83%. The firm had revenue of $11.12 billion for the quarter, compared to the consensus estimate of $11.60 billion. During the same quarter in the previous year, the firm earned $0.31 earnings per share. The company’s quarterly revenue was up 93.2% compared to the same quarter last year. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS. As a group, equities research analysts expect that Super Micro Computer, Inc. will post 4.04 EPS for the current year.

Insider Buying and Selling at Super Micro Computer

In other Super Micro Computer news, Director Chiu-Chu Liang sold 100,000 shares of the business’s stock in a transaction on Thursday, September 3rd. The shares were sold at an average price of $37.19, for a total value of $3,719,000.00. Following the sale, the director owned 537,506 shares in the company, valued at $19,989,848.14. The trade was a 15.69% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Liang sold 100,000 shares of the stock in a transaction dated Thursday, September 3rd. The shares were sold at an average price of $37.19, for a total transaction of $3,719,000.00. Following the transaction, the chief executive officer directly owned 537,506 shares of the company’s stock, valued at $19,989,848.14. This trade represents a 15.69% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 16.10% of the stock is owned by insiders.

Institutional Trading of Super Micro Computer

A number of large investors have recently added to or reduced their stakes in SMCI. Elyxium Wealth LLC purchased a new stake in shares of Super Micro Computer during the 4th quarter worth approximately $26,000. SHP Wealth Management purchased a new position in shares of Super Micro Computer in the fourth quarter valued at $29,000. TOP Private Wealth LLC. purchased a new position in shares of Super Micro Computer in the second quarter valued at $42,000. Comprehensive Financial Planning Inc. PA bought a new stake in Super Micro Computer in the second quarter worth $43,000. Finally, BNP Paribas bought a new stake in Super Micro Computer in the fourth quarter worth $47,000. Institutional investors own 84.06% of the company’s stock.

About Super Micro Computer

Super Micro Computer, Inc, doing business as Supermicro, develops and sells application-optimized server and storage systems. Its product portfolio includes servers, workstations, storage platforms, networking equipment, motherboards, chassis, power supplies and related software and support services.

The company also provides high-performance computing and data center infrastructure, including systems designed for artificial intelligence, machine learning, cloud computing, enterprise applications, telecommunications and edge computing.