Super Micro Computer (NASDAQ:SMCI) Stock Lifted to “Strong-Buy” 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 report issued on Tuesday, Zacks reports.

Several other research firms also recently weighed in on SMCI. Wall Street Zen upgraded shares of Super Micro Computer from a “hold” rating to a “buy” rating in a report on Saturday, October 31st. The Goldman Sachs Group reiterated a “sell” rating and set a $34.00 price objective (up from $30.00) on shares of Super Micro Computer in a report on Wednesday, August 12th. Citigroup reiterated a “neutral” rating and set a $45.00 price objective (up from $39.00) on shares of Super Micro Computer in a report on Thursday, October 8th. Barclays set a $39.00 target price on shares of Super Micro Computer and gave the stock an “equal weight” rating in a research report on Wednesday, August 12th. Finally, Oppenheimer upgraded shares of Super Micro Computer to an “outperform” rating in a report on Wednesday, November 4th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating, eleven have given a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus target price of $41.29.

Super Micro Computer Price Performance

Shares of NASDAQ:SMCI opened at $30.43 on Tuesday. The company has a quick ratio of 1.66, a current ratio of 3.02 and a debt-to-equity ratio of 0.56. Super Micro Computer has a twelve month low of $19.48 and a twelve month high of $51.40. The stock’s 50 day moving average is $36.96 and its 200-day moving average is $32.61. The firm has a market capitalization 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 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 return on equity of 38.97% and a net margin of 6.77%. The company had revenue of $19.95 billion for the quarter, compared to analysts’ expectations of $16.29 billion. During the same period last year, the business earned $0.35 EPS. Super Micro Computer’s quarterly revenue was up 297.5% compared to the same quarter last year. Sell-side analysts forecast that Super Micro Computer will post 5.90 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Chiu-Chu Liang sold 100,000 shares of the company’s stock in a transaction 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 director owned 337,506 shares in the company, valued at approximately $15,194,520.12. This represents a 22.86% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Scott Angel purchased 1,715 shares of the stock in a transaction that occurred on Friday, November 6th. The stock was bought at an average cost of $29.12 per share, with a total value of $49,940.80. Following the completion of the transaction, the director directly owned 8,770 shares in the company, valued at $255,382.40. The trade was a 24.31% increase in their position. The SEC filing for this purchase provides additional information. Over the last 90 days, insiders sold 400,000 shares of company stock worth $16,442,000. 16.10% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Super Micro Computer

A number of hedge funds have recently bought and sold shares of the company. Dimensional Fund Advisors LP grew its stake in shares of 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 acquiring an additional 111,388 shares in the last quarter. Assenagon Asset Management S.A. raised its holdings in shares of Super Micro Computer by 1,770.4% in the second quarter. Assenagon Asset Management S.A. now owns 2,174,863 shares of the company’s stock valued at $63,789,000 after purchasing an additional 2,058,588 shares during the last quarter. Swiss National Bank raised its holdings in shares of Super Micro Computer by 7.6% in the first quarter. Swiss National Bank now owns 1,576,800 shares of the company’s stock valued at $35,904,000 after purchasing an additional 111,100 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. raised its holdings in shares of Super Micro Computer by 1.8% in the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,158,768 shares of the company’s stock valued at $47,591,000 after purchasing an additional 19,942 shares during the last quarter. Finally, Public Sector Pension Investment Board lifted its position in shares of Super Micro Computer by 513.0% during the third quarter. Public Sector Pension Investment Board now owns 618,712 shares of the company’s stock valued at $24,210,000 after purchasing an additional 517,783 shares in the last quarter. 84.06% of the stock is owned by hedge funds and other institutional investors.

Super Micro Computer News Roundup

Investors following SMCI have been watching these news items:

• 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
• Positive Sentiment: CoreWeave’s stronger results and improved outlook provided a lift to sentiment around Super Micro, which supplies AI-server infrastructure to the cloud-computing company. Article: Super Micro stock jumps as AMD server shipments and CoreWeave lift shares
• 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

About Super Micro Computer

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.