The Goldman Sachs Group Downgrades Super Micro Computer (NASDAQ:SMCI) to Sell

Super Micro Computer (NASDAQ:SMCI) was downgraded by The Goldman Sachs Group from a “neutral” rating to a “sell” rating in a report issued on Monday, Marketbeat Ratings reports. They currently have a $32.00 price target on the stock, down from their prior price target of $40.00. The Goldman Sachs Group’s target price would indicate a potential downside of 24.08% from the stock’s current price.

A number of other research analysts also recently weighed in on the company. JPMorgan Chase & Co. raised Super Micro Computer from an “underweight” rating to a “neutral” rating and increased their target price for the company from $35.00 to $45.00 in a report on Friday. Rosenblatt Securities initiated coverage on shares of Super Micro Computer in a report on Monday, March 10th. They issued a “buy” rating and a $60.00 price objective on the stock. Northland Securities set a $70.00 target price on shares of Super Micro Computer in a report on Thursday, March 6th. Loop Capital reiterated a “buy” rating on shares of Super Micro Computer in a research report on Tuesday, February 18th. Finally, Wedbush reissued a “hold” rating on shares of Super Micro Computer in a research report on Tuesday, February 18th. Three research analysts have rated the stock with a sell rating, ten have given a hold rating, five have assigned a buy rating and one has given a strong buy rating to the company. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus price target of $53.00.

Super Micro Computer Price Performance

Shares of SMCI opened at $42.15 on Monday. The firm has a market cap of $25.02 billion, a PE ratio of 21.16 and a beta of 1.21. Super Micro Computer has a 1-year low of $17.25 and a 1-year high of $110.61. The company has a current ratio of 3.77, a quick ratio of 1.93 and a debt-to-equity ratio of 0.32. The firm has a fifty day simple moving average of $38.66 and a two-hundred day simple moving average of $37.84.

Insider Activity

In other news, CEO Charles Liang sold 46,293 shares of the company’s stock in a transaction that occurred on Wednesday, February 26th. The stock was sold at an average price of $50.17, for a total transaction of $2,322,519.81. Following the sale, the chief executive officer now directly owns 67,403,640 shares of the company’s stock, valued at $3,381,640,618.80. This represents a 0.07 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP George Kao sold 71,720 shares of the firm’s stock in a transaction on Wednesday, February 26th. The shares were sold at an average price of $50.48, for a total transaction of $3,620,425.60. Following the completion of the transaction, the senior vice president now directly owns 19,449 shares of the company’s stock, valued at approximately $981,785.52. This trade represents a 78.67 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 137,473 shares of company stock worth $6,771,552 over the last quarter. Insiders own 17.60% of the company’s stock.

Hedge Funds Weigh In On Super Micro Computer

Institutional investors have recently bought and sold shares of the business. Clear Creek Financial Management LLC bought a new stake in shares of Super Micro Computer in the 4th quarter worth about $635,000. Nepsis Inc. purchased a new position in Super Micro Computer in the fourth quarter worth about $13,625,000. Sanctuary Advisors LLC increased its stake in Super Micro Computer by 254.7% during the third quarter. Sanctuary Advisors LLC now owns 30,634 shares of the company’s stock worth $12,756,000 after acquiring an additional 21,997 shares during the last quarter. Fifth Third Bancorp raised its position in Super Micro Computer by 1,476.6% during the fourth quarter. Fifth Third Bancorp now owns 12,266 shares of the company’s stock valued at $374,000 after purchasing an additional 11,488 shares during the period. Finally, Bridgewater Associates LP lifted its stake in shares of Super Micro Computer by 921.1% in the 3rd quarter. Bridgewater Associates LP now owns 161,104 shares of the company’s stock valued at $67,084,000 after purchasing an additional 145,327 shares during the last quarter. Institutional investors own 84.06% of the company’s stock.

About Super Micro Computer

Super Micro Computer, Inc, together with its subsidiaries, develops and manufactures high performance server and storage solutions based on modular and open architecture in the United States, Europe, Asia, and internationally. Its solutions range from complete server, storage systems, modular blade servers, blades, workstations, full racks, networking devices, server sub-systems, server management software, and security software.