Super Micro Computer (NASDAQ:SMCI) Trading Down 3.1% – Time to Sell?

Super Micro Computer, Inc. (NASDAQ:SMCI) shares dropped 3.1% during mid-day trading on Friday . The company traded as low as $51.62 and last traded at $52.18. Approximately 20,573,165 shares were traded during mid-day trading, a decline of 59% from the average daily volume of 49,954,957 shares. The stock had previously closed at $53.84.

Analyst Upgrades and Downgrades

SMCI has been the subject of a number of research analyst reports. Mizuho increased their target price on Super Micro Computer from $40.00 to $47.00 and gave the company a “neutral” rating in a report on Thursday, July 3rd. Needham & Company LLC increased their price objective on Super Micro Computer from $39.00 to $60.00 and gave the stock a “buy” rating in a report on Wednesday, August 6th. Bank of America assumed coverage on Super Micro Computer in a report on Wednesday, July 9th. They set an “underperform” rating and a $35.00 price objective for the company. Wedbush reiterated a “neutral” rating and set a $30.00 price objective on shares of Super Micro Computer in a report on Monday, August 4th. Finally, Barclays increased their price objective on Super Micro Computer from $29.00 to $45.00 and gave the stock an “equal weight” rating in a report on Thursday, August 7th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, ten have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $45.36.

Super Micro Computer Trading Down 3.1%

The company has a debt-to-equity ratio of 0.74, a current ratio of 5.25 and a quick ratio of 3.25. The company has a fifty day moving average of $46.83 and a 200-day moving average of $44.12. The firm has a market capitalization of $31.01 billion, a PE ratio of 31.43, a price-to-earnings-growth ratio of 1.30 and a beta of 1.55.

Super Micro Computer (NASDAQ:SMCI) last posted its earnings results on Tuesday, August 5th. The company reported $0.41 earnings per share for the quarter, missing the consensus estimate of $0.44 by ($0.03). Super Micro Computer had a net margin of 4.77% and a return on equity of 17.14%. The company had revenue of $5.76 billion for the quarter, compared to the consensus estimate of $5.88 billion. During the same quarter last year, the business earned $6.25 earnings per share. Super Micro Computer’s quarterly revenue was up 8.5% on a year-over-year basis. Super Micro Computer has set its Q1 2026 guidance at 0.400-0.520 EPS. FY 2026 guidance at EPS. On average, sell-side analysts anticipate that Super Micro Computer, Inc. will post 1.86 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Super Micro Computer news, CEO Charles Liang sold 200,000 shares of the firm’s stock in a transaction dated Monday, July 28th. The stock was sold at an average price of $60.00, for a total transaction of $12,000,000.00. Following the transaction, the chief executive officer directly owned 40,426,120 shares in the company, valued at $2,425,567,200. This trade represents a 0.49% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, SVP George Kao sold 40,000 shares of the firm’s stock in a transaction dated Friday, August 22nd. The shares were sold at an average price of $43.88, for a total value of $1,755,200.00. Following the transaction, the senior vice president owned 21,820 shares in the company, valued at approximately $957,461.60. This trade represents a 64.70% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 490,000 shares of company stock valued at $27,890,950 in the last three months. 16.30% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Super Micro Computer

Several hedge funds and other institutional investors have recently made changes to their positions in SMCI. Clear Street LLC acquired a new stake in shares of Super Micro Computer in the second quarter valued at about $158,724,000. Norges Bank acquired a new stake in shares of Super Micro Computer in the second quarter valued at about $150,395,000. Marshall Wace LLP grew its position in shares of Super Micro Computer by 596.4% in the second quarter. Marshall Wace LLP now owns 3,437,714 shares of the company’s stock valued at $168,482,000 after purchasing an additional 2,944,049 shares during the last quarter. Vanguard Group Inc. grew its position in shares of Super Micro Computer by 3.9% in the first quarter. Vanguard Group Inc. now owns 64,407,769 shares of the company’s stock valued at $2,205,322,000 after purchasing an additional 2,415,276 shares during the last quarter. Finally, Invesco Ltd. grew its position in shares of Super Micro Computer by 31.6% in the second quarter. Invesco Ltd. now owns 8,639,784 shares of the company’s stock valued at $423,436,000 after purchasing an additional 2,073,978 shares during the last quarter. 84.06% of the stock is owned by institutional investors and hedge funds.

Super Micro Computer Company Profile

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.