Key Points
- CEO Charles Liang sold 100,000 SMCI shares at an average price of $45.02, generating $4.5 million and reducing his direct holdings by 22.86%. The transaction occurred under a pre-arranged Rule 10b5-1 plan.
- Super Micro reported strong earnings growth, with quarterly EPS of $1.70 versus the $0.92 consensus estimate and revenue up 93.2% year over year, although revenue missed analyst expectations.
- Analyst sentiment remains mixed: the stock carries an average “Hold” rating with a $43.07 price target, while institutional investors own approximately 84.06% of the company.
Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) 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 sale, the chief executive officer directly owned 337,506 shares in the company, valued at approximately $15,194,520.12. The trade was a 22.86% decrease in their position. The sale was disclosed in a filing 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.
Charles Liang also recently made the following trade(s):
- On Thursday, September 3rd, Charles Liang sold 100,000 shares of Super Micro Computer stock. The shares were sold at an average price of $37.19, for a total transaction of $3,719,000.00.
Super Micro Computer Stock Performance
Shares of SMCI opened at $41.85 on Friday. The company has a debt-to-equity ratio of 0.65, a current ratio of 3.87 and a quick ratio of 2.07. The firm's 50 day moving average is $38.23 and its 200-day moving average is $32.93. Super Micro Computer, Inc. has a 12-month low of $19.48 and a 12-month high of $58.51. The stock has a market capitalization of $27.49 billion, a P/E ratio of 13.08, a P/E/G ratio of 0.83 and a beta of 2.02.
Super Micro Computer (NASDAQ:SMCI - Get Free Report) last released its earnings results on Tuesday, August 11th. The company reported $1.70 EPS for the quarter, beating the consensus estimate of $0.92 by $0.78. The business had revenue of $11.12 billion during the quarter, compared to analyst estimates of $11.60 billion. Super Micro Computer had a net margin of 5.71% and a return on equity of 27.83%. The business's quarterly revenue was up 93.2% on a year-over-year basis. During the same period in the prior year, the business earned $0.31 earnings per share. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS. Equities research analysts anticipate that Super Micro Computer, Inc. will post 3.94 EPS for the current fiscal year.
Super Micro Computer News Roundup
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
Institutional Trading of Super Micro Computer
Hedge funds and other institutional investors have recently modified their holdings of the business. World Equity Group Inc. grew its holdings in shares of Super Micro Computer by 3.8% during the first quarter. World Equity Group Inc. now owns 9,877 shares of the company's stock valued at $225,000 after buying an additional 362 shares in the last quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS lifted its stake in Super Micro Computer by 0.5% in 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 acquiring an additional 564 shares in the last quarter. Focused Wealth Management Inc lifted its stake in Super Micro Computer by 3.3% in the 1st quarter. Focused Wealth Management Inc now owns 21,245 shares of the company's stock worth $484,000 after acquiring an additional 677 shares in the last quarter. MCF Advisors LLC boosted its position in Super Micro Computer by 22.8% during the 2nd quarter. MCF Advisors LLC now owns 3,667 shares of the company's stock worth $108,000 after acquiring an additional 680 shares during the period. Finally, Redwood Wealth Management Group LLC boosted its position in Super Micro Computer by 8.8% during the 1st quarter. Redwood Wealth Management Group LLC now owns 9,725 shares of the company's stock worth $221,000 after acquiring an additional 785 shares during the period. Institutional investors and hedge funds own 84.06% of the company's stock.
Wall Street Analyst Weigh In
A number of equities analysts recently issued reports on the company. Stifel Nicolaus set a $42.00 target price on Super Micro Computer in a report on Wednesday, August 12th. Wedbush upped their target price on Super Micro Computer from $34.00 to $40.00 and gave the company a "neutral" rating in a report on Wednesday, August 12th. Zacks Research raised Super Micro Computer from a "hold" rating to a "strong-buy" rating in a research note on Thursday, August 20th. Northland Securities set a $36.00 price objective on Super Micro Computer in a report on Wednesday, July 22nd. Finally, Bank of America reaffirmed an "underperform" rating on shares of Super Micro Computer in a research note on Wednesday, August 12th. One analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, eleven have assigned a Hold rating and two have assigned a Sell rating to the company. According to data from MarketBeat, Super Micro Computer has an average rating of "Hold" and an average price target of $43.07.
Read Our Latest Stock Analysis on SMCI
About Super Micro Computer
(
Get Free Report)
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.
Further Reading
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