Super Micro Computer (NASDAQ:SMCI) Stock Falls 11.3% – Time to Sell?

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI) dropped 11.3% during trading on Thursday. The company traded as low as $25.70 and last traded at $26.99. 113,935,276 shares traded hands during trading, an increase of 159% from the average daily volume of 43,972,043 shares. The stock had previously closed at $30.43.

Key Headlines Impacting Super Micro Computer

Here are a few of the latest headlines about SMCI:

• Positive Sentiment: Super Micro has begun shipping its H15 server portfolio powered by AMD’s next-generation EPYC processors, targeting AI, cloud and high-performance computing workloads. The launch provides another product offering as demand for AI infrastructure grows. Article: Supermicro Now Shipping Next-Generation Servers Powered by AMD EPYC Processors
• Neutral Sentiment: The company’s latest quarter was strong on reported results: revenue reached $19.95 billion and EPS was $1.81, both above analyst expectations. However, the figures were already public and did not prevent the latest pullback. Article: Super Micro stock sinks despite $19.9 billion quarter
• Negative Sentiment: The DOJ report is the clearest near-term pressure on SMCI: prosecutors are reportedly examining possible China-bound product smuggling involving entities linked to Alice Huang. The investigation raises regulatory, export-control and reputational risks, although no conclusions or wrongdoing are established in the reports. Article: Why is SMCI stock falling on Thursday?

Analyst Upgrades and Downgrades

SMCI has been the subject of a number of research reports. Northland Securities set a $36.00 price target on shares of Super Micro Computer in a research report on Wednesday, July 22nd. Wall Street Zen upgraded Super Micro Computer from a “hold” rating to a “buy” rating in a report on Saturday, October 31st. Citigroup reaffirmed a “neutral” rating and issued a $45.00 price objective (up from $39.00) on shares of Super Micro Computer in a research note on Thursday, October 8th. Oppenheimer raised Super Micro Computer to an “outperform” rating in a report on Wednesday, November 4th. Finally, Susquehanna reaffirmed a “negative” rating and set a $18.00 price objective (up from $15.00) on shares of Super Micro Computer in a report on Tuesday. One analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, eleven have issued a Hold rating and three have assigned a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Hold” and an average target price of $41.29.

Super Micro Computer Price Performance

The company has a debt-to-equity ratio of 0.56, a current ratio of 3.02 and a quick ratio of 1.66. The firm has a market capitalization of $17.79 billion, a PE ratio of 5.75, a P/E/G ratio of 0.31 and a beta of 2.17. The company has a 50-day moving average price of $36.96 and a 200-day moving average price of $32.61.

Super Micro Computer (NASDAQ:SMCI) last posted its quarterly earnings data on Tuesday, November 3rd. The company reported $1.81 EPS for the quarter, topping analysts’ consensus estimates of $1.28 by $0.53. The firm had revenue of $19.95 billion during the quarter, compared to analysts’ expectations of $16.29 billion. Super Micro Computer had a return on equity of 38.97% and a net margin of 6.77%. The firm’s quarterly revenue was up 297.5% compared to the same quarter last year. During the same quarter last year, the business posted $0.35 EPS. Sell-side analysts forecast that Super Micro Computer, Inc. will post 5.90 EPS for the current year.

Insider Buying and Selling at Super Micro Computer

In related news, Director Chiu-Chu Liang sold 100,000 shares of the firm’s 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 sale, the director directly owned 337,506 shares of the company’s stock, valued at approximately $15,194,520.12. This trade represents a 22.86% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at 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 firm’s 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 in the company, valued at $15,194,520.12. This represents a 22.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 400,000 shares of company stock worth $16,442,000 in the last 90 days. 16.10% of the stock is owned by company insiders.

Hedge Funds Weigh In On Super Micro Computer

Several institutional investors and hedge funds have recently bought and sold shares of SMCI. AlphaGrep UK Ltd purchased a new position in Super Micro Computer during the third quarter worth approximately $204,000. Meeder Advisory Services Inc. purchased a new stake in shares of Super Micro Computer during the 3rd quarter valued at $252,000. Resona Asset Management Co. Ltd. grew its stake in shares of Super Micro Computer by 4.4% during the 3rd quarter. Resona Asset Management Co. Ltd. now owns 152,234 shares of the company’s stock valued at $6,251,000 after buying an additional 6,347 shares during the period. Advisors Asset Management Inc. purchased a new stake in shares of Super Micro Computer during the 3rd quarter valued at $412,000. Finally, Edmond DE Rothschild Holding S.A. acquired a new stake in shares of Super Micro Computer during the 3rd quarter worth $25,000. Institutional investors and hedge funds own 84.06% of the company’s stock.

About Super Micro Computer

Super Micro Computer, Inc. designs and sells server and storage systems, networking equipment, and related software and services. Its offerings include systems for data centers, cloud computing, enterprise applications, high-performance computing, artificial intelligence, and edge computing. The company emphasizes application-optimized solutions, including integrated rack-scale systems that combine computing, storage, networking, and management tools. It also provides system configuration, deployment, and support services.