Super Micro Computer (NASDAQ:SMCI) Downgraded by Zacks Research to “Hold”

Zacks Research downgraded shares of Super Micro Computer (NASDAQ:SMCI) from a strong-buy rating to a hold rating in a report released on Monday morning,Zacks reports.

A number of other brokerages also recently issued reports on SMCI. Barclays set a $39.00 price objective on Super Micro Computer and gave the company an “equal weight” rating in a research report on Wednesday, August 12th. Northland Securities set a $36.00 target price on Super Micro Computer in a report on Wednesday, July 22nd. Raymond James Financial reiterated an “outperform” rating and issued a $48.00 target price on shares of Super Micro Computer in a report on Wednesday, August 12th. Needham & Company LLC reissued a “buy” rating and set a $46.00 target price on shares of Super Micro Computer in a research report on Wednesday, August 12th. Finally, Citigroup restated a “neutral” rating and set a $45.00 price target (up from $39.00) on shares of Super Micro Computer in a report on Thursday, October 8th. Four research analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $43.07.

Super Micro Computer Stock Performance

Super Micro Computer stock opened at $39.07 on Monday. The company’s 50-day moving average price is $38.60 and its 200-day moving average price is $33.24. Super Micro Computer has a twelve month low of $19.48 and a twelve month high of $56.60. 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 company has a market cap of $25.67 billion, a PE ratio of 12.21, a price-to-earnings-growth ratio of 0.77 and a beta of 2.02.

Super Micro Computer (NASDAQ:SMCI) last announced its earnings results on Tuesday, August 11th. The company reported $1.70 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.92 by $0.78. Super Micro Computer had a net margin of 5.71% and a return on equity of 27.83%. The firm had revenue of $11.12 billion for the quarter, compared to analysts’ expectations of $11.60 billion. During the same period in the prior year, the company earned $0.31 EPS. The business’s revenue was up 93.2% compared to the same quarter last year. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS. On average, equities research analysts forecast that Super Micro Computer will post 3.94 EPS for the current fiscal year.

Insider Activity

In other news, CEO Charles Liang sold 100,000 shares of the company’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 transaction, the chief executive officer owned 337,506 shares of the company’s stock, valued at approximately $15,194,520.12. This represents a 22.86% decrease in their ownership of the stock. The transaction 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 Chiu-Chu Liang sold 100,000 shares of the company’s 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 director directly owned 337,506 shares in the company, valued at approximately $15,194,520.12. This represents 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 sold 400,000 shares of company stock valued at $16,442,000. 16.10% of the stock is owned by insiders.

Institutional Investors Weigh In On Super Micro Computer

Institutional investors and hedge funds have recently modified their holdings of the business. Krilogy Financial LLC boosted its holdings in Super Micro Computer by 23.1% during the 3rd quarter. Krilogy Financial LLC now owns 15,709 shares of the company’s stock valued at $628,000 after acquiring an additional 2,950 shares during the period. Sound Income Strategies LLC purchased a new stake in Super Micro Computer in the third quarter worth $983,000. GAMMA Investing LLC increased its stake in Super Micro Computer by 65.0% in the third quarter. GAMMA Investing LLC now owns 17,657 shares of the company’s stock worth $725,000 after purchasing an additional 6,953 shares during the period. Farther Finance Advisors LLC increased its stake in Super Micro Computer by 137.8% in the third quarter. Farther Finance Advisors LLC now owns 19,357 shares of the company’s stock worth $795,000 after purchasing an additional 11,217 shares during the period. Finally, MassMutual Private Wealth & Trust FSB lifted its position in shares of Super Micro Computer by 117.4% during the third quarter. MassMutual Private Wealth & Trust FSB now owns 2,187 shares of the company’s stock worth $90,000 after purchasing an additional 1,181 shares during the last quarter. 84.06% of the stock is owned by institutional investors.

Key Super Micro Computer News

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

• Positive Sentiment: Supermicro expanded its Open Compute Project portfolio with rack-scale AI and high-performance-computing systems, ORv3 and ORW racks, 48V power, networking, liquid cooling, rear-door heat exchangers, and software-management tools. The offering could help data-center customers deploy high-density AI infrastructure faster, supporting future demand. Supermicro Expands Integrated Open Compute Project Portfolio
• Positive Sentiment: Earlier optimism was driven by a Zacks upgrade to Rank #1, or “Strong Buy,” and reports of a substantial order pipeline and rising earnings estimates. However, that favorable signal has since been reversed. Super Micro Strong Buy Upgrade
• Neutral Sentiment: Super Micro was recently reported to have beaten quarterly EPS expectations, although revenue came in below consensus. Investors may therefore remain focused on whether projected AI-server growth converts into sustained sales and profits.
• Negative Sentiment: Zacks Research downgraded SMCI from “Strong Buy” to “Hold,” removing a recent catalyst and signaling less near-term conviction in earnings momentum.
• Negative Sentiment: Shares fell after reports of insider selling, with the selling activity raising concerns about management confidence and adding to short-term supply pressure. Super Micro Stock Falls on Insider Selling
• Negative Sentiment: A former contractor reportedly pleaded guilty to conspiring to illegally export restricted AI technology to China, reviving regulatory, legal, and reputational risks involving the company and a co-founder. Why Super Micro Stock Is Nosediving

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.