Super Micro Computer (NASDAQ:SMCI) Stock Falls 2.3% on Analyst Downgrade

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI) fell 2.3% during mid-day trading on Tuesday after Zacks Research downgraded the stock from a strong-buy rating to a hold rating. The stock traded as low as $38.49 and last traded at $39.07. 24,518,141 shares changed hands during trading, a decline of 44% from the average session volume of 43,669,445 shares. The stock had previously closed at $39.98.

Other analysts have also recently issued research reports about the company. Wedbush lifted their price target on Super Micro Computer from $34.00 to $40.00 and gave the company a “neutral” rating in a report on Wednesday, August 12th. Barclays set a $39.00 price objective on shares of Super Micro Computer and gave the stock an “equal weight” rating in a report on Wednesday, August 12th. Needham & Company LLC reissued a “buy” rating and issued a $46.00 target price on shares of Super Micro Computer in a research report on Wednesday, August 12th. Raymond James Financial restated an “outperform” rating and issued a $48.00 target price on shares of Super Micro Computer in a report on Wednesday, August 12th. Finally, Rosenblatt Securities upped their price target on shares of Super Micro Computer from $45.00 to $51.00 and gave the stock a “buy” rating in a research report on Wednesday, August 12th. Four analysts have rated the stock with a Buy rating, twelve have given a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and an average target price of $43.07.

Insider Transactions at Super Micro Computer

In other news, CEO Charles Liang sold 100,000 shares of the stock in a transaction dated 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 completion of the sale, the chief executive officer owned 337,506 shares in the company, valued at approximately $15,194,520.12. This trade represents a 22.86% decrease in their ownership of the stock. The transaction 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. Also, Director Chiu-Chu Liang sold 100,000 shares of the 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. This trade represents 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. In the last 90 days, insiders have sold 400,000 shares of company stock worth $16,442,000. 16.10% of the stock is currently owned by insiders.

More Super Micro Computer News

Here are the key news stories impacting Super Micro Computer this week:

• Positive Sentiment: AI infrastructure demand remains a growth catalyst. Digi Power X is deploying Supermicro servers equipped with Nvidia’s latest Blackwell chips for its enterprise AI-computing platform, providing a customer example for Supermicro’s AI-server business. Digi Power X pairs owned power infrastructure with Supermicro GPUs to serve enterprise AI customers
• Positive Sentiment: Low valuation may attract bargain hunters. SMCI trades at roughly 10 times earnings, well below the S&P 500 median. Its latest quarter also showed strong year-over-year revenue growth and an earnings beat, although revenue fell short of expectations. Is SMCI Stock A Real Bargain?
• Neutral Sentiment: Mark Long was appointed chief financial officer effective immediately. Long, formerly Western Digital’s CFO, will report to CEO Charles Liang. The leadership change could strengthen financial oversight, but the abrupt transition has added uncertainty for investors. Super Micro appoints Mark Long as chief financial officer
• Negative Sentiment: AI-hardware stocks are facing sector-wide pressure. Barclays downgraded Dell and Hewlett Packard Enterprise to Hold, citing uncertainty over the timing of enterprise AI spending. The resulting retreat in server makers has pressured SMCI as well. Dell Falls 8%, Hewlett Packard Enterprise Drops 4% as Barclays Cuts Both to Hold
• Negative Sentiment: Analyst and insider signals have weakened sentiment. Zacks Research moved SMCI from Strong Buy to Hold, while reported insider selling contributed to additional selling pressure. Super Micro Computer Stock Falls on Insider Selling

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the stock. Dimensional Fund Advisors LP boosted its holdings in shares of Super Micro Computer by 2.8% in the first quarter. Dimensional Fund Advisors LP now owns 4,082,780 shares of the company’s stock valued at $92,872,000 after acquiring an additional 111,388 shares in the last quarter. Assenagon Asset Management S.A. raised its stake in Super Micro Computer by 1,770.4% during 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 purchasing an additional 2,058,588 shares during the period. Swiss National Bank boosted its position 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 worth $35,904,000 after buying an additional 111,100 shares during the period. Hsbc Holdings PLC grew its stake in Super Micro Computer by 13.7% during the 4th quarter. Hsbc Holdings PLC now owns 1,134,891 shares of the company’s stock valued at $33,203,000 after acquiring an additional 137,180 shares in the last quarter. Finally, Principal Financial Group Inc. raised its stake in shares of Super Micro Computer by 1.3% during the 1st quarter. Principal Financial Group Inc. now owns 565,746 shares of the company’s stock worth $12,882,000 after purchasing an additional 7,373 shares in the last quarter. 84.06% of the stock is owned by institutional investors and hedge funds.

Super Micro Computer Trading Down 1.9%

The company has a current ratio of 3.87, a quick ratio of 2.07 and a debt-to-equity ratio of 0.65. The firm has a market capitalization of $23.05 billion, a price-to-earnings ratio of 10.97, a price-to-earnings-growth ratio of 0.75 and a beta of 2.02. The company has a fifty day moving average price of $38.71 and a 200-day moving average price of $33.34.

Super Micro Computer (NASDAQ:SMCI) last released its quarterly earnings results on Tuesday, August 11th. The company reported $1.70 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.92 by $0.78. The company had revenue of $11.12 billion during the quarter, compared to the consensus estimate of $11.60 billion. Super Micro Computer had a return on equity of 27.83% and a net margin of 5.71%. The firm’s revenue was up 93.2% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.31 EPS. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS. On average, equities research analysts predict that Super Micro Computer, Inc. will post 3.94 EPS for the current year.

Super Micro Computer Company Profile

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.