Super Micro Computer (NASDAQ:SMCI) Stock Falls 8.4% – Time to Sell?

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI) fell 8.4% during mid-day trading on Wednesday. The company traded as low as $35.63 and last traded at $35.78. Approximately 31,999,473 shares traded hands during mid-day trading, a decline of 27% from the average daily volume of 43,613,426 shares. The stock had previously closed at $39.07.

Trending Headlines about Super Micro Computer

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

• Positive Sentiment: Buy rating maintained: Rosenblatt Securities reaffirmed its “buy” rating and assigned a $51 price target, implying substantial upside from recent levels. Wall Street sets SMCI stock price target for next 12 months
• Positive Sentiment: Enterprise AI demand opportunity: Digi Power X is using Supermicro servers equipped with Nvidia’s Blackwell chips to provide AI-computing capacity to enterprise customers, supporting the company’s positioning in the growing AI infrastructure market. Digi Power X pairs owned power infrastructure with Supermicro GPUs
• Neutral Sentiment: Valuation attracts bargain hunters: SMCI trades at roughly 10 times earnings, significantly below the S&P 500 median. However, investors remain concerned that reported profits may not consistently convert into cash, limiting the appeal of the low valuation. Is SMCI Stock A Real Bargain?
• Negative Sentiment: CFO replacement highlights governance concerns: Super Micro appointed Mark Long, a former Western Digital finance executive, as CFO, replacing David Weigand. The change comes nearly two years after an advisory committee reportedly recommended replacing Weigand, making the delayed transition a potential confidence issue for investors. Super Micro’s CFO is out after change was slow-walked
• Negative Sentiment: AI hardware selloff broadens: Concerns about how companies will finance the AI infrastructure boom and uncertainty over the timing of enterprise spending are weighing on server makers, including Super Micro, Dell and Hewlett Packard Enterprise. The sector-wide pressure is adding to SMCI’s recent losses. AI financing worries extend hardware selloff

Analyst Upgrades and Downgrades

A number of research analysts have recently weighed in on the company. Northland Securities set a $36.00 price target on Super Micro Computer in a research note on Wednesday, July 22nd. The Goldman Sachs Group reaffirmed a “sell” rating and set a $34.00 price objective (up from $30.00) on shares of Super Micro Computer in a research note on Wednesday, August 12th. Barclays set a $39.00 price objective on Super Micro Computer and gave the company an “equal weight” rating in a report on Wednesday, August 12th. Citigroup reissued a “neutral” rating and issued a $45.00 target price (up from $39.00) on shares of Super Micro Computer in a research note on Thursday, October 8th. Finally, Bank of America restated an “underperform” rating on shares of Super Micro Computer in a 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’s stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average target price of $43.07.

Super Micro Computer Trading Down 10.2%

The company has a fifty day simple moving average of $38.83 and a two-hundred day simple moving average of $33.43. 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 stock has a market capitalization of $20.71 billion, a P/E ratio of 9.86, a price-to-earnings-growth ratio of 0.69 and a beta of 2.02.

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, topping 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 return on equity of 27.83% and a net margin of 5.71%. The company’s revenue for the quarter was up 93.2% compared to the same quarter last year. During the same period in the prior year, the company 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 expect that Super Micro Computer, Inc. will post 3.94 earnings per share for the current year.

Insider Buying and Selling

In related news, CEO Charles Liang sold 100,000 shares of the 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 of the company’s stock, valued at approximately $15,194,520.12. This represents a 22.86% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Chiu-Chu 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 sale, the director owned 337,506 shares in the company, valued at $15,194,520.12. This trade represents a 22.86% decrease in their ownership of the stock. 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. Over the last three months, insiders have sold 400,000 shares of company stock valued at $16,442,000. 16.10% of the stock is owned by company insiders.

Institutional Investors Weigh In On Super Micro Computer

Institutional investors have recently added to or reduced their stakes in the stock. Annex Advisory Services LLC bought a new position in shares of Super Micro Computer in the 3rd quarter valued at about $10,282,000. SLT Holdings LLC increased its position in shares of Super Micro Computer by 3.0% during the 3rd quarter. SLT Holdings LLC now owns 10,400 shares of the company’s stock worth $427,000 after purchasing an additional 300 shares during the last quarter. Mather Group LLC. raised its stake in shares of Super Micro Computer by 292.5% during the 3rd quarter. Mather Group LLC. now owns 13,424 shares of the company’s stock worth $551,000 after purchasing an additional 10,004 shares in the last quarter. Triumph Capital Management raised its stake in shares of Super Micro Computer by 21.5% during the 3rd quarter. Triumph Capital Management now owns 9,605 shares of the company’s stock worth $394,000 after purchasing an additional 1,700 shares in the last quarter. Finally, Krilogy Financial LLC boosted its holdings in shares of Super Micro Computer by 23.1% in the 3rd quarter. Krilogy Financial LLC now owns 15,709 shares of the company’s stock valued at $628,000 after buying an additional 2,950 shares during the last quarter. 84.06% of the stock is owned by institutional investors.

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.