Super Micro Computer, Inc. (NASDAQ:SMCI – Get Free Report) traded down 4.8% on Thursday. The company traded as low as $41.87 and last traded at $42.77. 38,408,459 shares were traded during mid-day trading, a decline of 13% from the average session volume of 43,945,012 shares. The stock had previously closed at $44.94.
Super Micro Computer News Summary
Here are the key news stories impacting Super Micro Computer this week:
- Positive Sentiment: Supermicro added Shesha Krishnapura, a 35-year Intel veteran with high-performance computing and AI infrastructure experience, as an independent director. The appointment may strengthen the company’s strategic and operational expertise as it expands in AI data-center infrastructure. Supermicro Appoints Shesha Krishnapura to Board of Directors
- Positive Sentiment: Super Micro enters fiscal 2027 with a reported order pipeline exceeding $60 billion, supported by demand for AI systems and enterprise infrastructure. If converted into revenue, the pipeline could support continued growth. Can Super Micro Computer Sustain Its AI Capex Momentum in 2027?
- Positive Sentiment: Zacks added SMCI to its Rank #1 “Strong Buy” and value-stock lists, providing a favorable near-term analyst signal. Zacks Strong Buy Coverage
- Neutral Sentiment: A report stated that short interest totaled zero shares, implying no days-to-cover. This figure conflicts with the description of a sharp increase in short interest and may reflect incomplete or inaccurate data, limiting its usefulness as a trading signal.
- Negative Sentiment: CEO Charles Liang and director Chiu-Chu Liang each sold 100,000 shares at an average of $45.02, reducing their direct holdings by 22.86%. The sales were made under pre-arranged Rule 10b5-1 plans, which reduces their significance but may still weigh on sentiment.
- Negative Sentiment: Investors are questioning whether SMCI’s roughly 11-fold five-year gain is supported by long-term cash generation. High-volume GPU systems typically carry lower margins, raising concerns that rapid sales growth may not translate proportionally into profits. One Unsettled Question Sits Under Super Micro Computer Stock
- Negative Sentiment: Recent gains in server stocks have begun to unwind as investors take profits, adding to short-term selling pressure across the sector. Super Micro Drops as Profit Taking Unwinds Server Rally
Wall Street Analysts Forecast Growth
Several equities research analysts have recently commented on SMCI shares. Sanford C. Bernstein set a $42.00 target price on Super Micro Computer in a research note on Thursday, August 13th. Bank of America reiterated an “underperform” rating on shares of Super Micro Computer in a research report on Wednesday, August 12th. Northland Securities set a $36.00 price objective on Super Micro Computer in a report on Wednesday, July 22nd. Rosenblatt Securities upped their target price on shares of Super Micro Computer from $45.00 to $51.00 and gave the company a “buy” rating in a research report on Wednesday, August 12th. Finally, Raymond James Financial reiterated an “outperform” rating and set a $48.00 price target on shares of Super Micro Computer in a research report on Wednesday, August 12th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, eleven have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, Super Micro Computer presently has an average rating of “Hold” and a consensus price target of $43.07.
Super Micro Computer Price Performance
The company has a debt-to-equity ratio of 0.65, a quick ratio of 2.07 and a current ratio of 3.87. The company has a 50-day moving average price of $38.23 and a 200-day moving average price of $32.93. The firm has a market capitalization of $27.49 billion, a P/E ratio of 13.08, a price-to-earnings-growth ratio of 0.83 and a beta of 2.02.
Super Micro Computer (NASDAQ:SMCI – Get Free Report) last released its quarterly earnings data on Tuesday, August 11th. The company reported $1.70 EPS for the quarter, beating analysts’ consensus estimates of $0.92 by $0.78. Super Micro Computer had a return on equity of 27.83% and a net margin of 5.71%. The business had revenue of $11.12 billion during the quarter, compared to the consensus estimate of $11.60 billion. During the same quarter in the prior year, the company posted $0.31 earnings per share. The firm’s revenue was up 93.2% on a year-over-year basis. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS. On average, sell-side analysts predict that Super Micro Computer, Inc. will post 3.94 earnings per share for the current year.
Insider Activity at Super Micro Computer
In related news, CEO Charles Liang sold 100,000 shares of the business’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 transaction of $4,502,000.00. Following the completion of the transaction, the chief executive officer owned 337,506 shares in the company, valued at approximately $15,194,520.12. The trade was a 22.86% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, 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 transaction of $4,502,000.00. Following the completion of the sale, the director directly owned 337,506 shares of the company’s stock, valued at $15,194,520.12. The trade was a 22.86% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 400,000 shares of company stock worth $16,442,000 in the last three months. 16.10% of the stock is owned by insiders.
Institutional Inflows and Outflows
Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Assenagon Asset Management S.A. raised its position in Super Micro Computer by 1,770.4% in the 2nd quarter. Assenagon Asset Management S.A. now owns 2,174,863 shares of the company’s stock valued at $63,789,000 after buying an additional 2,058,588 shares during the last quarter. Ardmore Road Asset Management LP acquired a new position in Super Micro Computer during the 1st quarter worth approximately $11,954,000. Diversify Wealth Management LLC bought a new position in shares of Super Micro Computer during the 1st quarter worth approximately $7,455,000. VIRGINIA RETIREMENT SYSTEMS ET Al acquired a new stake in shares of Super Micro Computer in the second quarter valued at approximately $8,412,000. Finally, Virtu Financial LLC bought a new stake in shares of Super Micro Computer in the fourth quarter worth $4,814,000. 84.06% of the stock is currently owned by institutional investors.
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.
Featured Stories
- Five stocks we like better than Super Micro Computer
- Delta Air Lines Faces a Fuel Crisis—But There’s a Silver Lining
- Is Synopsys Back from the Dead? EDA Leader Inks Deals With Amazon and OpenAI
- MarketBeat Week in Review – 10/05 – 10/09
- Alphabet Introduces Gemini Agent—Can It Trigger a Breakout?
Receive News & Ratings for Super Micro Computer Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Super Micro Computer and related companies with MarketBeat.com's FREE daily email newsletter.
