Super Micro Computer (NASDAQ:SMCI) Stock Price Down 5.3% – Should You Sell?

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI) dropped 5.3% on Tuesday . The company traded as low as $29.12 and last traded at $29.22. 53,833,456 shares changed hands during mid-day trading, an increase of 28% from the average daily volume of 42,005,516 shares. The stock had previously closed at $30.85.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on SMCI. Barclays reduced their price objective on Super Micro Computer from $38.00 to $34.00 and set an “equal weight” rating for the company in a research note on Wednesday, May 6th. Rosenblatt Securities increased their price target on shares of Super Micro Computer from $32.00 to $40.00 and gave the stock a “buy” rating in a report on Wednesday, May 6th. Mizuho raised their price target on shares of Super Micro Computer from $36.00 to $44.00 and gave the stock a “neutral” rating in a research report on Monday, June 1st. CJS Securities raised shares of Super Micro Computer from a “market underperform” rating to a “market perform” rating in a research report on Wednesday, May 6th. Finally, Northland Securities lifted their price objective on shares of Super Micro Computer from $22.00 to $34.00 in a research note on Wednesday, May 6th. Four research analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $38.57.

Super Micro Computer Trading Up 10.4%

The firm has a market capitalization of $18.44 billion, a price-to-earnings ratio of 16.22, a P/E/G ratio of 0.49 and a beta of 1.87. The company has a debt-to-equity ratio of 0.88, a quick ratio of 1.29 and a current ratio of 2.66. The company has a 50 day moving average price of $32.72 and a two-hundred day moving average price of $31.13.

Super Micro Computer (NASDAQ:SMCI) last announced its earnings results on Tuesday, May 5th. The company reported $0.84 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.63 by $0.21. Super Micro Computer had a net margin of 3.70% and a return on equity of 17.49%. The business had revenue of $10.24 billion for the quarter, compared to analyst estimates of $12.39 billion. During the same quarter last year, the business earned $0.31 earnings per share. The company’s revenue for the quarter was up 122.7% compared to the same quarter last year. Super Micro Computer has set its Q4 2026 guidance at 0.650-0.790 EPS. On average, research analysts forecast that Super Micro Computer, Inc. will post 2.11 EPS for the current year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in SMCI. Pacer Advisors Inc. grew its position in shares of Super Micro Computer by 1.7% in the first quarter. Pacer Advisors Inc. now owns 101,611 shares of the company’s stock valued at $2,314,000 after purchasing an additional 1,719 shares in the last quarter. Militia Capital Management LLC acquired a new stake in Super Micro Computer during the first quarter worth about $488,000. NewEdge Advisors LLC increased its position in Super Micro Computer by 6.3% during the first quarter. NewEdge Advisors LLC now owns 55,847 shares of the company’s stock worth $1,272,000 after purchasing an additional 3,308 shares during the last quarter. Edgestream Partners L.P. purchased a new position in Super Micro Computer during the first quarter worth about $1,866,000. Finally, Janus Henderson Group PLC raised its stake in Super Micro Computer by 7.7% during the first quarter. Janus Henderson Group PLC now owns 51,584 shares of the company’s stock worth $1,175,000 after purchasing an additional 3,683 shares during the period. 84.06% of the stock is currently owned by institutional investors and hedge funds.

About Super Micro Computer

Super Micro Computer, Inc (Supermicro) is a technology company that designs, develops and manufactures high-performance server, storage and networking solutions for enterprise, cloud, data center, high performance computing (HPC) and edge computing customers. The company’s product portfolio includes rackmount and blade servers, storage subsystems, motherboards, chassis, power supplies and networking components, with an emphasis on high-density, energy-efficient configurations and platforms optimized for GPU-accelerated workloads and artificial intelligence applications.

Headquartered in San Jose, California, Supermicro combines in-house engineering with a global manufacturing and distribution footprint to deliver configurable, application-specific systems.