Super Micro Computer (NASDAQ:SMCI) Rating Lowered to “Hold” at Zacks Research

Super Micro Computer (NASDAQ:SMCI) was downgraded by Zacks Research from a “strong-buy” rating to a “hold” rating in a research note issued to investors on Monday, Zacks reports.

SMCI has been the topic of a number of other research reports. Wedbush increased their price objective on Super Micro Computer from $34.00 to $40.00 and gave the company a “neutral” rating in a report on Wednesday, August 12th. Sanford C. Bernstein set a $42.00 target price on Super Micro Computer in a research note on Thursday, August 13th. Rosenblatt Securities boosted their target price on Super Micro Computer from $45.00 to $51.00 and gave the stock a “buy” rating in a research note on Wednesday, August 12th. Stifel Nicolaus set a $42.00 price target on Super Micro Computer in a report on Wednesday, August 12th. Finally, Citigroup reaffirmed a “neutral” rating and issued a $45.00 price target (up from $39.00) on shares of Super Micro Computer in a report on Thursday, October 8th. Four analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Super Micro Computer presently has an average rating of “Hold” and a consensus price target of $43.07.

Super Micro Computer Stock Performance

NASDAQ:SMCI opened at $39.07 on Monday. The firm has a market capitalization of $25.67 billion, a PE ratio of 12.21, a price-to-earnings-growth ratio of 0.77 and a beta of 2.02. The business’s fifty day moving average price is $38.60 and its 200 day moving average price is $33.24. 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 12 month low of $19.48 and a 12 month high of $56.60.

Super Micro Computer (NASDAQ:SMCI) last posted its quarterly earnings results on Tuesday, August 11th. The company reported $1.70 earnings per share for the quarter, beating analysts’ consensus estimates of $0.92 by $0.78. The company had revenue of $11.12 billion for the quarter, compared to analysts’ expectations of $11.60 billion. Super Micro Computer had a return on equity of 27.83% and a net margin of 5.71%. Super Micro Computer’s quarterly revenue was up 93.2% on a year-over-year basis. During the same period last year, the firm earned $0.31 earnings per share. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS. On average, sell-side analysts anticipate that Super Micro Computer will post 3.94 earnings per share for the current fiscal 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 firm’s stock in a transaction dated 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 transaction, the director 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 sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Liang sold 100,000 shares of Super Micro Computer stock in a transaction dated Wednesday, October 7th. The stock was sold at an average price of $45.02, for a total value of $4,502,000.00. Following the sale, the chief executive officer owned 337,506 shares in the company, valued at $15,194,520.12. This trade represents a 22.86% 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. Insiders sold 400,000 shares of company stock valued at $16,442,000 in the last 90 days. 16.10% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in SMCI. SHP Wealth Management acquired a new position in Super Micro Computer in the 4th quarter valued at $29,000. TOP Private Wealth LLC. purchased a new position in Super Micro Computer during the 2nd quarter worth $42,000. Comprehensive Financial Planning Inc. PA acquired a new stake in shares of Super Micro Computer in the 2nd quarter worth $43,000. Banque Cantonale Vaudoise acquired a new stake in shares of Super Micro Computer in the 1st quarter worth $37,000. Finally, Contravisory Investment Management Inc. acquired a new stake in shares of Super Micro Computer in the 2nd quarter worth $49,000. Hedge funds and other institutional investors own 84.06% of the company’s stock.

Key Headlines Impacting Super Micro Computer

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

• Positive Sentiment: Supermicro expanded its Open Compute Project portfolio with rack-scale AI and high-performance-computing systems, ORv3 and ORW racks, 48V power, networking, liquid cooling, rear-door heat exchangers, and software-management tools. The offering could help data-center customers deploy high-density AI infrastructure faster, supporting future demand. Supermicro Expands Integrated Open Compute Project Portfolio
• Positive Sentiment: Earlier optimism was driven by a Zacks upgrade to Rank #1, or “Strong Buy,” and reports of a substantial order pipeline and rising earnings estimates. However, that favorable signal has since been reversed. Super Micro Strong Buy Upgrade
• Neutral Sentiment: Super Micro was recently reported to have beaten quarterly EPS expectations, although revenue came in below consensus. Investors may therefore remain focused on whether projected AI-server growth converts into sustained sales and profits.
• Negative Sentiment: Zacks Research downgraded SMCI from “Strong Buy” to “Hold,” removing a recent catalyst and signaling less near-term conviction in earnings momentum.
• Negative Sentiment: Shares fell after reports of insider selling, with the selling activity raising concerns about management confidence and adding to short-term supply pressure. Super Micro Stock Falls on Insider Selling
• Negative Sentiment: A former contractor reportedly pleaded guilty to conspiring to illegally export restricted AI technology to China, reviving regulatory, legal, and reputational risks involving the company and a co-founder. Why Super Micro Stock Is Nosediving

About Super Micro Computer

Super Micro Computer, Inc develops and sells application-optimized server and storage systems for data centers, cloud computing, enterprise IT, artificial intelligence, and other demanding computing environments. The company offers complete computing platforms as well as modular components, allowing customers to configure systems for specific performance, power, and workload requirements.

Its product portfolio includes server and storage systems, workstations, networking equipment, rack-scale solutions, GPU and AI systems, and related software and services.