Super Micro Computer (NASDAQ:SMCI) Shares Gap Down – Here’s What Happened

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI) gapped down before the market opened on Thursday. The stock had previously closed at $30.43, but opened at $27.28. Super Micro Computer shares last traded at $27.88, with a volume of 16,261,945 shares.

Key Headlines Impacting Super Micro Computer

These are some of the SMCI headlines that stood out recently:

• Positive Sentiment: Zacks Research upgraded SMCI from “hold” to “strong buy,” adding a favorable analyst signal. Article: Zacks Research stock recommendations
• Positive Sentiment: A company director bought 1,715 shares, increasing his direct holdings by about 24%. The insider purchase may suggest confidence, though its dollar value was modest relative to the company. Article: Super Micro Computer Stock: Insider Scott Angel Buys 1,715 Shares
• Negative Sentiment: Investors remain concerned that rapid sales growth is not translating into cash: quarterly operating cash flow was negative $434 million, with receivables and inventory tying up funds. This raises questions about working-capital demands and the quality of growth. Article: Super Micro Computer Stocks Fall as Cash Drain Shadows Fourfold Sales Jump

Analysts Set New Price Targets

A number of research firms have commented on SMCI. Wedbush increased their price objective on shares of Super Micro Computer from $34.00 to $40.00 and gave the company a “neutral” rating in a research note on Wednesday, August 12th. Citigroup reissued 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. Sanford C. Bernstein set a $42.00 target price on shares of Super Micro Computer in a research report on Thursday, August 13th. Stifel Nicolaus set a $42.00 target price on shares of Super Micro Computer in a research note on Wednesday, August 12th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Super Micro Computer in a research report on Monday, September 21st. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, eleven have given a Hold rating and three have issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average price target of $41.29.

Super Micro Computer Stock Performance

The firm has a market cap of $17.61 billion, a price-to-earnings ratio of 5.66, a PEG ratio of 0.31 and a beta of 2.17. The stock’s fifty day moving average is $36.96 and its two-hundred day moving average is $32.61. The company has a debt-to-equity ratio of 0.56, a quick ratio of 1.66 and a current ratio of 3.02.

Super Micro Computer (NASDAQ:SMCI) last posted its earnings results on Tuesday, November 3rd. The company reported $1.81 EPS for the quarter, beating the consensus estimate 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 firm had revenue of $19.95 billion for the quarter, compared to analysts’ expectations of $16.29 billion. During the same period last year, the firm earned $0.35 EPS. The firm’s revenue was up 297.5% compared to the same quarter last year. On average, analysts expect that Super Micro Computer, Inc. will post 5.90 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Super Micro Computer news, CEO Charles Liang sold 100,000 shares of Super Micro Computer 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 completion of the sale, the chief executive officer 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 sale was disclosed in a filing with the SEC, which is available at 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 business’s stock in a transaction dated 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 completion of the transaction, the director owned 337,506 shares in the company, valued at $15,194,520.12. This trade 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. Over the last three months, insiders sold 400,000 shares of company stock worth $16,442,000. 16.10% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the company. SLT Holdings LLC increased its position in Super Micro Computer by 3.0% during the third quarter. SLT Holdings LLC now owns 10,400 shares of the company’s stock worth $427,000 after acquiring an additional 300 shares during the period. World Equity Group Inc. grew its position in 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 purchasing an additional 362 shares during the last quarter. Quest 10 Wealth Builders Inc. increased its holdings in shares of Super Micro Computer by 235.2% during the 3rd quarter. Quest 10 Wealth Builders Inc. now owns 600 shares of the company’s stock worth $25,000 after purchasing an additional 421 shares during the period. Commonwealth of Pennsylvania Public School Empls Retrmt SYS increased its holdings in shares of Super Micro Computer by 0.5% during the 1st 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 period. Finally, Edmond DE Rothschild Holding S.A. bought a new position in shares of Super Micro Computer during the 3rd quarter worth about $25,000. Institutional investors own 84.06% of the company’s stock.

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.