Super Micro Computer (NASDAQ:SMCI) Shares Down 2.1% on Insider Selling

Super Micro Computer, Inc. (NASDAQ:SMCI)’s share price fell 2.1% on Friday after an insider sold shares in the company. The company traded as low as $40.63 and last traded at $41.86. 27,181,782 shares traded hands during trading, a decline of 38% from the average session volume of 43,860,941 shares. The stock had previously closed at $42.77.

Specifically, CEO Charles Liang sold 100,000 shares of the company’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 directly owned 337,506 shares of the company’s stock, valued at $15,194,520.12. This represents a 22.86% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 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 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 sale, the director owned 337,506 shares of the company’s stock, valued at $15,194,520.12. This trade represents a 22.86% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analyst Weigh In

Several research analysts have weighed in on SMCI shares. Wedbush upped their target price on shares of Super Micro Computer from $34.00 to $40.00 and gave the stock a “neutral” rating in a research report on Wednesday, August 12th. Citigroup reiterated a “neutral” rating and set a $45.00 price target (up from $39.00) on shares of Super Micro Computer in a research report on Thursday. Northland Securities set a $36.00 price target on Super Micro Computer in a research note on Wednesday, July 22nd. Rosenblatt Securities upped their price target on Super Micro Computer from $45.00 to $51.00 and gave the stock a “buy” rating in a report on Wednesday, August 12th. Finally, Barclays set a $39.00 price objective on Super Micro Computer and gave the stock an “equal weight” rating in a report on Wednesday, August 12th. One research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, eleven have assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the company has an average rating of “Hold” and a consensus target price of $43.07.

Key Headlines Impacting Super Micro Computer

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

• Positive Sentiment: Supermicro appointed Shesha Krishnapura, a 35-year Intel veteran, as an independent director. His operational and technology experience could strengthen the board as the company expands its AI infrastructure business, while Judy Lin is retiring from the board. Supermicro Appoints Shesha Krishnapura to Board of Directors
• Positive Sentiment: Super Micro entered fiscal 2027 with an order pipeline exceeding $60 billion, supported by demand for AI systems and increasing enterprise adoption. This provides a potentially strong revenue-growth outlook if the company converts the pipeline into shipments. Can Super Micro Computer Sustain Its AI Capex Momentum in 2027?
• Positive Sentiment: Zacks added SMCI to its Rank #1, or “Strong Buy,” list and its value-stock list, potentially supporting investor interest given the company’s relatively low earnings valuation. New Strong Buy Stocks for October 8th
• Neutral Sentiment: Analyst commentary continues to focus on Super Micro alongside other major technology companies, keeping attention on the company’s AI-driven growth prospects and execution. Analysts Offer Insights on Technology Companies
• Negative Sentiment: The key unresolved issue is profitability: management has indicated that high-volume GPU systems generally carry lower margins than Super Micro’s other products. Investors therefore remain concerned that rapid sales growth may not translate into comparable earnings growth. One Unsettled Question Sits Under Super Micro Computer Stock
• Negative Sentiment: Recent weakness was attributed to profit-taking after a server-sector rally, suggesting some investors are locking in gains rather than reacting to a new deterioration in the company’s fundamentals. Super Micro Drops as Profit Taking Unwinds Server Rally

Super Micro Computer Price Performance

The firm has a market capitalization of $27.49 billion, a PE ratio of 13.08, a P/E/G ratio of 0.87 and a beta of 2.02. The company has a 50-day moving average price of $37.96 and a 200-day moving average price of $32.87. The company has a debt-to-equity ratio of 0.65, a current ratio of 3.87 and a quick ratio of 2.07.

Super Micro Computer (NASDAQ:SMCI) last released 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 for the quarter, compared to analysts’ expectations of $11.60 billion. Super Micro Computer had a net margin of 5.71% and a return on equity of 27.83%. The firm’s revenue for the quarter was up 93.2% compared to the same quarter last year. During the same period last year, the company earned $0.31 EPS. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS. Sell-side analysts forecast that Super Micro Computer, Inc. will post 3.94 EPS for the current year.

Institutional Trading of Super Micro Computer

A number of hedge funds have recently bought and sold shares of the company. World Equity Group Inc. grew its position in shares of Super Micro Computer by 3.8% in the 1st quarter. World Equity Group Inc. now owns 9,877 shares of the company’s stock worth $225,000 after acquiring an additional 362 shares in the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS lifted its stake in Super Micro Computer by 0.5% during the first quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 117,205 shares of the company’s stock worth $2,669,000 after purchasing an additional 564 shares during the last quarter. Focused Wealth Management Inc boosted its holdings in Super Micro Computer by 3.3% in the first quarter. Focused Wealth Management Inc now owns 21,245 shares of the company’s stock worth $484,000 after purchasing an additional 677 shares during the period. MCF Advisors LLC increased its stake in Super Micro Computer by 22.8% during the second quarter. MCF Advisors LLC now owns 3,667 shares of the company’s stock valued at $108,000 after purchasing an additional 680 shares during the last quarter. Finally, Redwood Wealth Management Group LLC raised its holdings in shares of Super Micro Computer by 8.8% during the first quarter. Redwood Wealth Management Group LLC now owns 9,725 shares of the company’s stock worth $221,000 after purchasing an additional 785 shares during the period. Institutional investors and hedge funds 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.