Super Micro Computer (NASDAQ:SMCI) Stock Price Down 11.3% Following Weak Earnings

by · The Cerbat Gem

Super Micro Computer, Inc. (NASDAQ:SMCI – Get Free Report) shares traded down 11.3% during mid-day trading on Wednesday following a weaker than expected earnings announcement. The company traded as low as $42.02 and last traded at $42.03. 60,882,693 shares changed hands during trading, an increase of 24% from the average session volume of 48,907,133 shares. The stock had previously closed at $47.40.

The company reported $0.35 earnings per share for the quarter, missing the consensus estimate of $0.46 by ($0.11). The firm had revenue of $5.02 billion during the quarter, compared to the consensus estimate of $6.48 billion. Super Micro Computer had a net margin of 4.77% and a return on equity of 17.14%. Super Micro Computer’s quarterly revenue was down 15.5% compared to the same quarter last year. During the same period in the prior year, the business posted $0.73 earnings per share. Super Micro Computer has set its Q2 2026 guidance at 0.460-0.540 EPS. FY 2026 guidance at EPS.

Analyst Upgrades and Downgrades

Several research analysts have recently weighed in on the company. Mizuho lowered their price objective on Super Micro Computer from $50.00 to $45.00 and set a “neutral” rating for the company in a research report on Wednesday. Citigroup reiterated a “neutral” rating and issued a $52.00 target price (up from $37.00) on shares of Super Micro Computer in a report on Friday, July 11th. Northland Securities set a $63.00 target price on Super Micro Computer in a report on Wednesday. The Goldman Sachs Group set a $34.00 price objective on Super Micro Computer and gave the stock a “sell” rating in a research note on Wednesday. Finally, Bank of America began coverage on Super Micro Computer in a research note on Wednesday, July 9th. They issued an “underperform” rating and a $35.00 price objective for the company. One investment analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, eight have given a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $47.53.

Check Out Our Latest Report on SMCI

Insider Buying and Selling at Super Micro Computer

In other Super Micro Computer news, CFO David E. Weigand sold 25,000 shares of the business’s stock in a transaction that occurred on Monday, September 15th. The stock was sold at an average price of $45.14, for a total transaction of $1,128,500.00. Following the sale, the chief financial officer directly owned 100,188 shares of the company’s stock, valued at $4,522,486.32. The trade was a 19.97% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, SVP George Kao sold 40,000 shares of the firm’s stock in a transaction that occurred on Friday, August 22nd. The stock was sold at an average price of $43.88, for a total value of $1,755,200.00. Following the sale, the senior vice president directly owned 21,820 shares of the company’s stock, valued at $957,461.60. This represents a 64.70% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 90,000 shares of company stock valued at $3,890,950 over the last 90 days. Corporate insiders own 16.30% of the company’s stock.

Institutional Trading of Super Micro Computer

Several large investors have recently added to or reduced their stakes in SMCI. Vanguard Group Inc. raised its position in shares of Super Micro Computer by 2.7% in the 2nd quarter. Vanguard Group Inc. now owns 66,152,948 shares of the company’s stock worth $3,242,156,000 after buying an additional 1,745,179 shares during the period. Geode Capital Management LLC raised its holdings in shares of Super Micro Computer by 2.7% during the second quarter. Geode Capital Management LLC now owns 13,752,581 shares of the company’s stock valued at $671,316,000 after buying an additional 364,411 shares during the last quarter. Disciplined Growth Investors Inc. MN raised its holdings in Super Micro Computer by 16.5% during the second quarter. Disciplined Growth Investors Inc. MN now owns 9,730,773 shares of the company’s stock worth $476,905,000 after purchasing an additional 1,381,046 shares in the last quarter. Invesco Ltd. raised its holdings in Super Micro Computer by 31.6% during the second quarter. Invesco Ltd. now owns 8,639,784 shares of the company’s stock worth $423,436,000 after purchasing an additional 2,073,978 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. grew its position in Super Micro Computer by 5.3% in the second quarter. Charles Schwab Investment Management Inc. now owns 3,971,739 shares of the company’s stock worth $194,655,000 after buying an additional 200,109 shares during the last quarter. Hedge funds and other institutional investors own 84.06% of the company’s stock.

Super Micro Computer Stock Down 11.3%

The company has a market cap of $24.98 billion, a price-to-earnings ratio of 25.32, a price-to-earnings-growth ratio of 1.30 and a beta of 1.55. The company has a debt-to-equity ratio of 0.74, a quick ratio of 3.25 and a current ratio of 5.25. The business’s 50 day simple moving average is $48.45 and its 200-day simple moving average is $45.84.

Super Micro Computer Company Profile

(Get Free Report)

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.

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