Super Micro Computer (NASDAQ:SMCI) Trading Down 5.4% – Here’s Why

Super Micro Computer, Inc. (NASDAQ:SMCI)’s stock price was down 5.4% during mid-day trading on Thursday . The company traded as low as $40.58 and last traded at $40.18. Approximately 18,357,346 shares were traded during trading, a decline of 76% from the average daily volume of 77,651,195 shares. The stock had previously closed at $42.47.

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on SMCI shares. Northland Securities set a $70.00 price target on Super Micro Computer in a report on Thursday, March 6th. Northland Capmk upgraded Super Micro Computer to a “strong-buy” rating in a report on Friday, December 20th. Wedbush restated a “hold” rating on shares of Super Micro Computer in a report on Tuesday, February 18th. Loop Capital restated a “buy” rating on shares of Super Micro Computer in a report on Tuesday, February 18th. Finally, Cfra upgraded Super Micro Computer from a “hold” rating to a “buy” rating and set a $48.00 target price on the stock in a report on Tuesday, February 11th. Three analysts have rated the stock with a sell rating, ten have given a hold rating, five have assigned a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average target price of $52.57.

Super Micro Computer Price Performance

The firm has a market capitalization of $25.03 billion, a P/E ratio of 21.17 and a beta of 1.21. The company has a debt-to-equity ratio of 0.32, a quick ratio of 1.93 and a current ratio of 3.77. The firm has a 50-day moving average of $38.01 and a 200-day moving average of $38.22.

Insider Activity at Super Micro Computer

In related news, SVP George Kao sold 71,720 shares of the company’s stock in a transaction that occurred on Wednesday, February 26th. The stock was sold at an average price of $50.48, for a total value of $3,620,425.60. Following the transaction, the senior vice president now directly owns 19,449 shares of the company’s stock, valued at approximately $981,785.52. This represents a 78.67 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CEO Charles Liang sold 46,293 shares of the company’s stock in a transaction that occurred on Wednesday, February 26th. The shares were sold at an average price of $50.17, for a total value of $2,322,519.81. Following the completion of the transaction, the chief executive officer now directly owns 67,403,640 shares in the company, valued at $3,381,640,618.80. This trade represents a 0.07 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 137,473 shares of company stock valued at $6,771,552. 17.60% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Super Micro Computer

Several hedge funds and other institutional investors have recently modified their holdings of the company. Vanguard Group Inc. lifted its holdings in shares of Super Micro Computer by 908.4% during the 4th quarter. Vanguard Group Inc. now owns 61,992,493 shares of the company’s stock valued at $1,889,531,000 after buying an additional 55,845,073 shares during the period. Geode Capital Management LLC lifted its holdings in shares of Super Micro Computer by 914.7% during the 4th quarter. Geode Capital Management LLC now owns 12,846,717 shares of the company’s stock valued at $390,572,000 after buying an additional 11,580,677 shares during the period. FMR LLC bought a new position in shares of Super Micro Computer during the 4th quarter valued at $292,869,000. Invesco Ltd. lifted its holdings in shares of Super Micro Computer by 929.5% during the 4th quarter. Invesco Ltd. now owns 7,542,742 shares of the company’s stock valued at $229,903,000 after buying an additional 6,810,082 shares during the period. Finally, Northern Trust Corp lifted its holdings in shares of Super Micro Computer by 1,573.8% during the 4th quarter. Northern Trust Corp now owns 4,897,876 shares of the company’s stock valued at $149,287,000 after buying an additional 4,605,260 shares during the period. 84.06% of the stock is owned by institutional investors.

About Super Micro Computer

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.