Super Micro Computer (NASDAQ:SMCI) Stock Price Down 9.9% – Here’s What Happened

Super Micro Computer, Inc. (NASDAQ:SMCI) shares dropped 9.9% on Friday. The stock traded as low as $31.43 and last traded at $31.63. Approximately 43,501,088 shares traded hands during trading, a decline of 0% from the average session volume of 43,588,617 shares. The stock had previously closed at $35.09.

Super Micro Computer News Roundup

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

• Positive Sentiment: New CFO could improve financial oversight: Super Micro appointed Mark Long, a former Western Digital finance executive, as chief financial officer effective October 15. His experience may help strengthen accounting, reporting, and cash-management processes. Super Micro appoints Mark Long as chief financial officer
• Positive Sentiment: Some analysts still see substantial upside: Rosenblatt Securities reaffirmed its “buy” rating with a $51 price target, while one longer-term analysis estimated a potential target near $72. These targets reflect confidence in Super Micro’s exposure to AI server demand. Wall Street sets SMCI stock price target
• Neutral Sentiment: Valuation is inexpensive but may reflect execution risks: Super Micro trades at roughly 9.8 times earnings, well below the S&P 500 median cited in the analysis. Investors must determine whether the discount represents a bargain or reflects concerns that reported profits are not translating into cash. Is SMCI Stock A Real Bargain?
• Negative Sentiment: The CFO transition raises governance concerns: The replacement came nearly two years after an advisory committee reportedly sought the former CFO’s removal. Coverage also highlights a nearly $7 billion use of free cash flow and prior legal and compliance controversies, increasing scrutiny of Super Micro’s financial controls. Super Micro’s CFO is out after change was slow-walked
• Negative Sentiment: AI hardware-sector concerns are weighing on SMCI: Investors are questioning the timing and financing of enterprise AI infrastructure spending, pressuring Super Micro alongside Dell and Hewlett Packard Enterprise. The sector-wide risk-off move is adding to company-specific concerns. AI financing worries extend hardware selloff

Analysts Set New Price Targets

A number of equities analysts have issued reports on SMCI shares. Northland Securities set a $36.00 target price on shares of Super Micro Computer in a report on Wednesday, July 22nd. Barclays set a $39.00 target price on Super Micro Computer and gave the company an “equal weight” rating in a report on Wednesday, August 12th. Zacks Research lowered Super Micro Computer from a “strong-buy” rating to a “hold” rating in a report on Monday, October 12th. Weiss Ratings reiterated a “hold (c)” rating on shares of Super Micro Computer in a research report on Monday, September 21st. Finally, The Goldman Sachs Group reiterated a “sell” rating and set a $34.00 price target (up from $30.00) on shares of Super Micro Computer in a research report on Wednesday, August 12th. Four 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. According to MarketBeat, Super Micro Computer presently has an average rating of “Hold” and a consensus price target of $43.07.

Super Micro Computer Price Performance

The company has a market capitalization of $20.78 billion, a P/E ratio of 9.88, a PEG ratio of 0.61 and a beta of 2.02. The company has a quick ratio of 2.07, a current ratio of 3.87 and a debt-to-equity ratio of 0.65. The business has a 50 day simple moving average of $38.84 and a 200-day simple moving average of $33.42.

Super Micro Computer (NASDAQ:SMCI) last announced its quarterly earnings results on Tuesday, August 11th. The company reported $1.70 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.92 by $0.78. The company had revenue of $11.12 billion during the quarter, compared to the consensus estimate of $11.60 billion. Super Micro Computer had a net margin of 5.71% and a return on equity of 27.83%. The company’s revenue for the quarter was up 93.2% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.31 earnings per share. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS. Analysts predict that Super Micro Computer, Inc. will post 3.94 EPS for the current fiscal year.

Insider Transactions 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 dated Wednesday, October 7th. The shares were sold at an average price of $45.02, for a total transaction of $4,502,000.00. Following the completion of the transaction, the director directly owned 337,506 shares of the company’s stock, valued at $15,194,520.12. The trade was a 22.86% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Liang sold 100,000 shares of the company’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 completion of the transaction, the chief executive officer 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 position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 400,000 shares of company stock valued at $16,442,000 over the last three months. 16.10% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Super Micro Computer

A number of hedge funds have recently made changes to their positions in SMCI. Dimensional Fund Advisors LP grew its holdings in Super Micro Computer by 2.8% in the 1st quarter. Dimensional Fund Advisors LP now owns 4,082,780 shares of the company’s stock worth $92,872,000 after buying an additional 111,388 shares in the last quarter. Assenagon Asset Management S.A. increased its position 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 valued at $63,789,000 after acquiring an additional 2,058,588 shares during the period. Swiss National Bank increased its position 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 valued at $35,904,000 after acquiring an additional 111,100 shares during the period. Hsbc Holdings PLC increased its position in Super Micro Computer by 13.7% in the 4th quarter. Hsbc Holdings PLC now owns 1,134,891 shares of the company’s stock valued at $33,203,000 after acquiring an additional 137,180 shares during the period. Finally, Principal Financial Group Inc. raised its stake in Super Micro Computer by 1.3% during the 1st quarter. Principal Financial Group Inc. now owns 565,746 shares of the company’s stock valued at $12,882,000 after acquiring an additional 7,373 shares in the last quarter. Institutional investors own 84.06% of the company’s stock.

Super Micro Computer Company Profile

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.