Super Micro Computer (NASDAQ:SMCI) Stock Rating Upgraded by Zacks Research

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

SMCI has been the subject of a number of other research reports. Bank of America lifted their target price on shares of Super Micro Computer from $38.00 to $39.00 and gave the stock an “underperform” rating in a research note on Wednesday, November 4th. Raymond James Financial reaffirmed an “outperform” rating and set a $65.00 price target on shares of Super Micro Computer in a research report on Wednesday, November 4th. Rosenblatt Securities reaffirmed a “buy” rating and set a $57.00 price target on shares of Super Micro Computer in a research report on Wednesday, November 4th. Wedbush increased their price target on Super Micro Computer from $34.00 to $40.00 and gave the stock a “neutral” rating in a report on Wednesday, August 12th. Finally, Northland Securities set a $36.00 price objective on Super Micro Computer in a research note on Wednesday, July 22nd. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, eleven have issued a Hold rating and three have given a Sell rating to the company. According to data from MarketBeat, Super Micro Computer currently has an average rating of “Hold” and an average price target of $41.29.

Super Micro Computer Stock Up 9.5%

Super Micro Computer stock opened at $30.43 on Tuesday. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.66 and a current ratio of 3.02. Super Micro Computer has a 52-week low of $19.48 and a 52-week high of $51.40. The firm has a 50 day moving average price of $36.96 and a two-hundred day moving average price of $32.61. The firm has a market cap of $20.06 billion, a price-to-earnings ratio of 6.49, a PEG ratio of 0.31 and a beta of 2.17.

Super Micro Computer (NASDAQ:SMCI) last issued its quarterly earnings results on Tuesday, November 3rd. The company reported $1.81 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.28 by $0.53. Super Micro Computer had a net margin of 6.77% and a return on equity of 38.97%. The firm had revenue of $19.95 billion for the quarter, compared to the consensus estimate of $16.29 billion. During the same quarter in the previous year, the company earned $0.35 EPS. The company’s revenue for the quarter was up 297.5% on a year-over-year basis. Equities analysts predict that Super Micro Computer will post 5.90 EPS for the current year.

Insider Activity

In other news, Director Chiu-Chu Liang sold 100,000 shares of Super Micro Computer stock in a transaction 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 owned 337,506 shares in the company, valued at $15,194,520.12. The trade was a 22.86% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available 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 business’s stock in a transaction on 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 transaction, the chief executive officer owned 337,506 shares in the company, valued at $15,194,520.12. The trade was 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 worth $16,442,000 in the last quarter. 16.10% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Super Micro Computer

Large investors have recently bought and sold shares of the stock. Dimensional Fund Advisors LP raised its holdings in shares of Super Micro Computer by 2.8% during the first 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 position in shares of Super Micro Computer by 1,770.4% during the 2nd quarter. Assenagon Asset Management S.A. now owns 2,174,863 shares of the company’s stock worth $63,789,000 after purchasing an additional 2,058,588 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. boosted its position in shares of Super Micro Computer by 1.8% during the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,158,768 shares of the company’s stock worth $47,591,000 after purchasing an additional 19,942 shares in the last quarter. Swiss National Bank boosted its position in shares of Super Micro Computer by 7.6% during the 1st quarter. Swiss National Bank now owns 1,576,800 shares of the company’s stock worth $35,904,000 after purchasing an additional 111,100 shares in the last quarter. Finally, Public Sector Pension Investment Board grew its stake in shares of Super Micro Computer by 513.0% in the 3rd quarter. Public Sector Pension Investment Board now owns 618,712 shares of the company’s stock valued at $24,210,000 after buying an additional 517,783 shares during the period. 84.06% of the stock is currently owned by institutional investors and hedge funds.

Key Super Micro Computer News

These are some of the SMCI news items that stood out recently:

• Positive Sentiment: Super Micro said its H15 server portfolio, powered by AMD’s 6th Gen EPYC processors, is now shipping. The systems target cloud, high-performance computing and AI workloads, and the company highlighted benchmark records and improvements including up to 33% more cores and twice the PCIe bandwidth. Commercial shipments could help it capture continued AI infrastructure demand. Article: Supermicro Now Shipping Next-Generation Servers Powered by 6th Gen AMD EPYC CPUs
• Negative Sentiment: Reports of regulatory scrutiny over whether Super Micro servers containing Nvidia chips were rented to China’s Moonshot AI raise potential export-control and compliance risks. Article: Super Micro Unveils H15 Servers as Export Scrutiny Draws Focus
• Negative Sentiment: Despite a near-quadrupling of quarterly revenue to about $19.9 billion, operating cash flow was negative $434 million as receivables and inventory increased. The cash drain underscores working-capital demands and the risk that rapid growth may not translate promptly into cash. Article: Super Micro Computer Stocks Fall as Cash Drain Shadows Fourfold Sales Jump

Super Micro Computer Company Profile

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.