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

Super Micro Computer (NASDAQ:SMCI) was upgraded by equities research analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a report released on Tuesday, Zacks reports.

A number of other equities analysts have also issued reports on SMCI. Sanford C. Bernstein set a $42.00 price target on shares of Super Micro Computer in a research report on Thursday, August 13th. Wedbush upped their target price on Super Micro Computer from $34.00 to $40.00 and gave the stock a “neutral” rating in a research note on Wednesday, August 12th. Bank of America raised their price target on shares of Super Micro Computer from $38.00 to $39.00 and gave the company an “underperform” rating in a research report on Wednesday, November 4th. Raymond James Financial reissued an “outperform” rating and issued a $65.00 price objective on shares of Super Micro Computer in a report on Wednesday, November 4th. Finally, Wall Street Zen raised shares of Super Micro Computer from a “hold” rating to a “buy” rating in a report on Saturday, October 31st. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, eleven have issued a Hold rating and three have given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price 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. The business’s 50-day simple moving average is $36.96 and its two-hundred day simple moving average is $32.61. The company has a market cap of $20.06 billion, a PE ratio of 6.49, a PEG ratio of 0.31 and a beta of 2.17. Super Micro Computer has a fifty-two week low of $19.48 and a fifty-two week high of $51.40.

Super Micro Computer (NASDAQ:SMCI) last announced its quarterly earnings data on Tuesday, November 3rd. The company reported $1.81 earnings per share for the quarter, beating 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 business had revenue of $19.95 billion for the quarter, compared to analyst estimates of $16.29 billion. During the same period in the prior year, the company earned $0.35 earnings per share. The company’s revenue was up 297.5% on a year-over-year basis. Equities analysts anticipate that Super Micro Computer will post 5.90 EPS for the current year.

Insider Buying and Selling

In other news, Director Scott Angel bought 1,715 shares of Super Micro Computer stock in a transaction on Friday, November 6th. The stock was acquired at an average price of $29.12 per share, with a total value of $49,940.80. Following the completion of the acquisition, the director directly owned 8,770 shares of the company’s stock, valued at $255,382.40. The trade was a 24.31% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, CEO Charles Liang sold 100,000 shares of the stock in a transaction that occurred 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 transaction, the chief executive officer 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 SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 400,000 shares of company stock worth $16,442,000. Insiders own 16.10% of the company’s stock.

Institutional Trading of Super Micro Computer

A number of institutional investors have recently made changes to their positions in SMCI. Dimensional Fund Advisors LP boosted its stake in shares of Super Micro Computer by 2.8% in the first 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 during the last quarter. Assenagon Asset Management S.A. raised its stake 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 purchasing an additional 2,058,588 shares during the last quarter. Swiss National Bank raised its stake 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 purchasing an additional 111,100 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. raised its stake in Super Micro Computer by 1.8% in the 3rd 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 holdings in 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 purchasing an additional 517,783 shares in the last quarter. 84.06% of the stock is owned by institutional investors and hedge funds.

Super Micro Computer News Summary

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
• 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.