Super Micro Computer (NASDAQ:SMCI) Stock Rating Reaffirmed as “Buy” by Rosenblatt Securities

Super Micro Computer (NASDAQ:SMCI)‘s stock had its “buy” rating reissued by investment analysts at Rosenblatt Securities in a report issued on Wednesday, Benzinga reports. They currently have a $57.00 target price on the stock. Rosenblatt Securities‘s price target would indicate a potential upside of 81.59% from the stock’s current price.

Several other equities research analysts have also weighed in on the company. Weiss Ratings restated a “hold (c)” rating on shares of Super Micro Computer in a research report on Monday, September 21st. Sanford C. Bernstein set a $42.00 price objective on Super Micro Computer in a report on Thursday, August 13th. Northland Securities set a $36.00 price objective on Super Micro Computer in a research report on Wednesday, July 22nd. Wedbush boosted their target price on shares of Super Micro Computer from $34.00 to $40.00 and gave the company a “neutral” rating in a report on Wednesday, August 12th. Finally, Zacks Research downgraded shares of Super Micro Computer from a “strong-buy” rating to a “hold” rating in a research report on Monday, October 12th. Five analysts have rated the stock with a Buy rating, twelve have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average price target of $45.60.

Super Micro Computer Stock Performance

Super Micro Computer stock opened at $31.39 on Wednesday. The stock’s 50 day simple moving average is $38.02 and its two-hundred day simple moving average is $32.70. 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 stock has a market cap of $20.62 billion, a price-to-earnings ratio of 9.81, a PEG ratio of 0.48 and a beta of 2.17. Super Micro Computer has a fifty-two week low of $19.48 and a fifty-two week high of $51.40.

Super Micro Computer (NASDAQ:SMCI) last announced its earnings results on Tuesday, November 3rd. The company reported $1.81 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.23 by $0.58. Super Micro Computer had a return on equity of 27.83% and a net margin of 5.71%. The firm had revenue of $19.95 billion during the quarter, compared to analyst estimates of $17.53 billion. During the same quarter in the prior year, the company earned $0.35 EPS. The business’s revenue was up 297.5% compared to the same quarter last year. As a group, analysts expect that Super Micro Computer will post 4.17 earnings per share for the current fiscal year.

Insider Activity

In other news, Director Chiu-Chu Liang sold 100,000 shares of Super Micro Computer 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 transaction, the director 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. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Liang sold 100,000 shares of the company’s stock in a transaction dated Wednesday, October 7th. The stock was 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 position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 400,000 shares of company stock valued at $16,442,000. 16.10% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Dimensional Fund Advisors LP raised its holdings in Super Micro Computer by 2.8% in the 1st quarter. Dimensional Fund Advisors LP now owns 4,082,780 shares of the company’s stock worth $92,872,000 after acquiring an additional 111,388 shares during the last quarter. Assenagon Asset Management S.A. lifted 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 acquiring an additional 2,058,588 shares in the last quarter. Swiss National Bank boosted its stake in Super Micro Computer by 7.6% during the 1st quarter. Swiss National Bank now owns 1,576,800 shares of the company’s stock valued at $35,904,000 after purchasing an additional 111,100 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. boosted its stake in Super Micro Computer by 1.8% during the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,158,768 shares of the company’s stock valued at $47,591,000 after purchasing an additional 19,942 shares during the last quarter. Finally, Principal Financial Group Inc. increased its holdings in shares of Super Micro Computer by 1.3% in 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. Institutional investors own 84.06% of the company’s stock.

More Super Micro Computer News

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

• Positive Sentiment: Results substantially beat expectations: Revenue reached $19.95 billion, up nearly 298% year over year and above analysts’ estimates of $17.53 billion. Adjusted earnings of $1.81 per share also topped consensus of about $1.23–$1.24. Article: Super Micro Computer Beats Q1 Earnings and Revenue Estimates
• Positive Sentiment: Guidance points to sustained AI demand: The company forecast next-quarter revenue of about $20.5 billion at the midpoint, above analyst expectations, and raised its full-year outlook. Executives said an individual AI deployment can now exceed the size of a quarter’s revenue a year ago. Article: Executive Says a Single AI Order Can Exceed a Year-Ago Quarter
• Positive Sentiment: Analyst reaction added support: One analyst described the earnings report as among the season’s strongest, as the figures offered fresh evidence of robust spending on AI infrastructure. Article: Analyst Calls SMCI Print One of the Best of the Season
• Neutral Sentiment: Recent volatility is a backdrop: SMCI had been caught in a broader AI-hardware selloff, with shares down over the prior week despite the company’s preliminary revenue beat. The earnings report may ease concerns about demand, but sector sentiment remains a factor. Article: Super Micro Sinks Despite a Revenue Beat
• Negative Sentiment: Margins and cash use warrant attention: Gross margin declined to 12.7% from 17.5% in the prior quarter, while higher inventory and receivables contributed to cash outflow. If rapid growth requires heavy working-capital investment or margins weaken further, it could temper the positive earnings reaction. Article: Supermicro Sales Quadruple as Cash Drains

About Super Micro Computer

Super Micro Computer, Inc develops and sells high-performance server and storage systems for data centers, cloud computing, enterprise IT, telecommunications, and other demanding computing environments. The company offers application-optimized servers, workstations, blade and rack systems, storage solutions, networking products, and related infrastructure.

Supermicro also provides systems designed for artificial intelligence, machine learning, accelerated computing, and other workloads that use graphics processing units and specialized processors.