Super Micro Computer’s (SMCI) “Buy” Rating Reaffirmed at Rosenblatt Securities

Super Micro Computer (NASDAQ:SMCI)‘s stock had its “buy” rating restated by analysts at Rosenblatt Securities in a research report issued on Wednesday, Benzinga reports. They presently have a $57.00 price target on the stock. Rosenblatt Securities‘s price objective indicates a potential upside of 81.59% from the company’s previous close.

SMCI has been the subject of a number of other reports. Wedbush boosted their price target on Super Micro Computer from $34.00 to $40.00 and gave the company a “neutral” rating in a research note on Wednesday, August 12th. Wall Street Zen upgraded shares of Super Micro Computer from a “hold” rating to a “buy” rating in a research note on Saturday. Oppenheimer raised shares of Super Micro Computer to an “outperform” rating in a report on Wednesday. Weiss Ratings reissued a “hold (c)” rating on shares of Super Micro Computer in a report on Monday, September 21st. Finally, Raymond James Financial restated an “outperform” rating and set a $65.00 target price on shares of Super Micro Computer in a research report on Wednesday. Five analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $45.60.

Super Micro Computer Price Performance

NASDAQ SMCI opened at $31.39 on Wednesday. The business’s fifty day moving average price is $38.02 and its 200-day moving average price is $32.70. The stock has a market capitalization of $20.62 billion, a price-to-earnings ratio of 9.81, a PEG ratio of 0.48 and a beta of 2.17. The company has a debt-to-equity ratio of 0.65, a current ratio of 3.87 and a quick ratio of 2.07. Super Micro Computer has a 1-year low of $19.48 and a 1-year high of $51.40.

Super Micro Computer (NASDAQ:SMCI) last posted its quarterly earnings data on Tuesday, November 3rd. The company reported $1.81 EPS for the quarter, beating analysts’ consensus estimates of $1.23 by $0.58. Super Micro Computer had a return on equity of 27.83% and a net margin of 5.71%. The company had revenue of $19.95 billion during the quarter, compared to analysts’ expectations of $17.53 billion. During the same quarter in the prior year, the business earned $0.35 earnings per share. Super Micro Computer’s revenue for the quarter was up 297.5% compared to the same quarter last year. On average, equities analysts predict that Super Micro Computer will post 4.17 earnings per share for the current year.

Insider Transactions at Super Micro Computer

In related news, Director Chiu-Chu Liang sold 100,000 shares of the stock in a transaction that occurred on Wednesday, October 7th. The shares were sold at an average price of $45.02, for a total value of $4,502,000.00. Following the completion of the sale, the director directly owned 337,506 shares of the company’s stock, valued at approximately $15,194,520.12. This represents a 22.86% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 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 that occurred on Wednesday, October 7th. The stock was sold at an average price of $45.02, for a total transaction of $4,502,000.00. Following the completion of the sale, the chief executive officer directly owned 337,506 shares of the company’s stock, valued at $15,194,520.12. This represents a 22.86% decrease in their ownership of the stock. 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. Over the last ninety days, insiders have sold 400,000 shares of company stock worth $16,442,000. Insiders own 16.10% of the company’s stock.

Hedge Funds Weigh In On Super Micro Computer

Hedge funds have recently modified their holdings of the company. Dimensional Fund Advisors LP raised its position in shares of Super Micro Computer by 2.8% during the 1st quarter. Dimensional Fund Advisors LP now owns 4,082,780 shares of the company’s stock valued at $92,872,000 after purchasing an additional 111,388 shares during the period. Assenagon Asset Management S.A. boosted its holdings in Super Micro Computer by 1,770.4% in the 2nd quarter. Assenagon Asset Management S.A. now owns 2,174,863 shares of the company’s stock worth $63,789,000 after buying an additional 2,058,588 shares during the period. Sumitomo Mitsui Trust Group Inc. boosted its holdings in Super Micro Computer by 1.8% in the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,158,768 shares of the company’s stock worth $47,591,000 after buying an additional 19,942 shares during the period. Swiss National Bank increased its stake in Super Micro Computer by 7.6% in the 1st quarter. Swiss National Bank now owns 1,576,800 shares of the company’s stock worth $35,904,000 after buying an additional 111,100 shares in the last quarter. Finally, Principal Financial Group Inc. increased its stake in Super Micro Computer by 1.3% in the 1st quarter. Principal Financial Group Inc. now owns 565,746 shares of the company’s stock worth $12,882,000 after buying an additional 7,373 shares in the last quarter. 84.06% of the stock is currently owned by institutional investors.

Super Micro Computer News Summary

Here are the key news stories impacting Super Micro Computer this week:

• Positive Sentiment: Results substantially beat expectations: Revenue reached $19.95 billion, up nearly 298% year over year and above analysts’ estimates of $17.53 billion. Adjusted earnings of $1.81 per share also topped consensus of about $1.23–$1.24. Article: Super Micro Computer Beats Q1 Earnings and Revenue Estimates
• Positive Sentiment: Guidance points to sustained AI demand: The company forecast next-quarter revenue of about $20.5 billion at the midpoint, above analyst expectations, and raised its full-year outlook. Executives said an individual AI deployment can now exceed the size of a quarter’s revenue a year ago. Article: Executive Says a Single AI Order Can Exceed a Year-Ago Quarter
• Positive Sentiment: Analyst reaction added support: One analyst described the earnings report as among the season’s strongest, as the figures offered fresh evidence of robust spending on AI infrastructure. Article: Analyst Calls SMCI Print One of the Best of the Season
• Neutral Sentiment: Recent volatility is a backdrop: SMCI had been caught in a broader AI-hardware selloff, with shares down over the prior week despite the company’s preliminary revenue beat. The earnings report may ease concerns about demand, but sector sentiment remains a factor. Article: Super Micro Sinks Despite a Revenue Beat
• Negative Sentiment: Margins and cash use warrant attention: Gross margin declined to 12.7% from 17.5% in the prior quarter, while higher inventory and receivables contributed to cash outflow. If rapid growth requires heavy working-capital investment or margins weaken further, it could temper the positive earnings reaction. Article: Supermicro Sales Quadruple as Cash Drains

Super Micro Computer Company Profile

Super Micro Computer, Inc develops and sells high-performance server and storage systems for data centers, cloud computing, enterprise IT, telecommunications, and other demanding computing environments. The company offers application-optimized servers, workstations, blade and rack systems, storage solutions, networking products, and related infrastructure.

Supermicro also provides systems designed for artificial intelligence, machine learning, accelerated computing, and other workloads that use graphics processing units and specialized processors.