Shares of Super Micro Computer, Inc. (NASDAQ:SMCI – Get Free Report) traded down 11.3% during mid-day trading on Thursday. The company traded as low as $25.70 and last traded at $26.99. Approximately 113,935,276 shares changed hands during trading, an increase of 159% from the average session volume of 43,972,043 shares. The stock had previously closed at $30.43.
Trending Headlines about Super Micro Computer
These are some of the SMCI headlines that stood out recently:
- Positive Sentiment: Super Micro has begun shipping its H15 server portfolio powered by AMD’s next-generation EPYC processors, targeting AI, cloud and high-performance computing workloads. The launch provides another product offering as demand for AI infrastructure grows. Article: Supermicro Now Shipping Next-Generation Servers Powered by AMD EPYC Processors
- Negative Sentiment: The DOJ report is the clearest near-term pressure on SMCI: prosecutors are reportedly examining possible China-bound product smuggling involving entities linked to Alice Huang. The investigation raises regulatory, export-control and reputational risks, although no conclusions or wrongdoing are established in the reports. Article: Why is SMCI stock falling on Thursday?
- Negative Sentiment: Investors also face concerns about cash conversion: despite the sharp sales growth, operating cash flow was negative $434 million, with receivables and inventory tying up cash. Article: Super Micro Computer Stocks Fall as Cash Drain Shadows Fourfold Sales Jump
Wall Street Analysts Forecast Growth
A number of equities analysts have recently commented on the company. The Goldman Sachs Group restated a “sell” rating and issued a $34.00 price objective (up from $30.00) on shares of Super Micro Computer in a report on Wednesday, August 12th. Northland Securities set a $36.00 target price on Super Micro Computer in a report on Wednesday, July 22nd. 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. Zacks Research raised shares of Super Micro Computer from a “hold” rating to a “strong-buy” rating in a research report on Tuesday. Finally, Needham & Company LLC restated a “buy” rating and issued a $46.00 price target on shares of Super Micro Computer in a report on Wednesday, August 12th. One equities research analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, eleven have given a Hold rating and three have issued a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of “Hold” and a consensus price target of $41.29.
Read Our Latest Stock Report on Super Micro Computer
Super Micro Computer Trading Down 11.3%
The business’s 50-day moving average is $36.96 and its two-hundred day moving average is $32.61. The company has a current ratio of 3.02, a quick ratio of 1.66 and a debt-to-equity ratio of 0.56. The stock has a market capitalization of $17.79 billion, a PE ratio of 5.75, a PEG ratio of 0.31 and a beta of 2.17.
Super Micro Computer (NASDAQ:SMCI – Get Free Report) last announced its quarterly earnings results on Tuesday, November 3rd. The company reported $1.81 earnings per share (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 during the quarter, compared to the consensus estimate of $16.29 billion. During the same period in the prior year, the firm earned $0.35 EPS. The firm’s quarterly revenue was up 297.5% compared to the same quarter last year. On average, analysts predict that Super Micro Computer, Inc. will post 5.90 earnings per share for the current year.
Insider Activity
In related news, Director Scott Angel purchased 1,715 shares of Super Micro Computer stock in a transaction that occurred on Friday, November 6th. The shares were purchased at an average cost of $29.12 per share, with a total value of $49,940.80. Following the transaction, the director owned 8,770 shares of the company’s stock, valued at approximately $255,382.40. The trade was a 24.31% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. Also, CEO Charles Liang sold 100,000 shares of the business’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 value of $4,502,000.00. Following the transaction, the chief executive officer directly owned 337,506 shares in the company, valued at $15,194,520.12. This trade represents a 22.86% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 400,000 shares of company stock worth $16,442,000. 16.10% of the stock is currently owned by corporate insiders.
Institutional Trading of Super Micro Computer
Large investors have recently bought and sold shares of the company. Dimensional Fund Advisors LP raised its stake in shares of Super Micro Computer by 2.8% during the first quarter. Dimensional Fund Advisors LP now owns 4,082,780 shares of the company’s stock valued at $92,872,000 after purchasing an additional 111,388 shares during the period. Assenagon Asset Management S.A. lifted its position in shares of Super Micro Computer by 1,770.4% during the second quarter. Assenagon Asset Management S.A. now owns 2,174,863 shares of the company’s stock worth $63,789,000 after purchasing an additional 2,058,588 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. boosted its stake 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 period. Swiss National Bank boosted its stake 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 period. Finally, Public Sector Pension Investment Board boosted its stake in shares of Super Micro Computer by 513.0% in 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 during the period. Institutional investors and hedge funds own 84.06% of the company’s stock.
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.
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