Super Micro Computer Shares Fall After Insider Selling

On Monday, shares of Super Micro Computer, Inc. (NASDAQ:SMCI) witnessed a decline of 5.8% following significant insider selling. The stock experienced a low of $39.21 before settling at $39.07 during mid-day trading. Approximately 32,311,662 shares changed hands, marking a substantial drop of 58% compared to the average daily volume of 76,559,656 shares. This downturn came after the company's previous close at $41.46.

Recently, Senior Vice President George Kao sold off 71,720 shares of Super Micro Computer on February 26th, managing to secure an average price of $50.48 per share. The total proceeds from this transaction amounted to $3,620,425.60. Following this sale, Kao holds 19,449 shares in the company, which are valued at $981,785.52, indicating a 78.67% reduction in his ownership stake. This transaction was formally reported in a filing with the Securities and Exchange Commission.

In a similar move, CEO Charles Liang sold 46,293 shares on the same day, receiving an average selling price of $50.17, culminating in a transaction worth $2,322,519.81. Post-sale, Liang still retains ownership of 67,403,640 shares, valued at around $3.38 billion, reflecting a minimal 0.07% decrease in his holdings.

Analyst Opinions on Super Micro Computer

Analysts' perspectives on SMCI shares vary. In a report dated February 18th, Wedbush reiterated a "hold" rating on Super Micro Computer. Meanwhile, Loop Capital affirmed a "buy" rating. Additionally, Barclays initiated coverage of Super Micro Computer with an "equal weight" rating and set a price target of $59.00. Cfra upgraded its position on the stock from "hold" to "buy" with a price goal of $48.00, while The Goldman Sachs Group raised its target from $32.00 to $36.00, assigning a "neutral" rating.

In light of these evaluations, the ratings on SMCI are varied, with three analysts recommending a sell, ten maintaining a hold rating, five suggesting a buy, and one providing a strong buy rating. Currently, Super Micro Computer has an average rating of "Hold" with a price target of $61.87 as per MarketBeat.com.

Recent Company Performance

Super Micro Computer currently boasts a market capitalization of $23.09 billion, a price-to-earnings ratio of 19.64, and a beta of 1.30. The company's financial ratios stand as follows: a debt-to-equity ratio of 0.32, a quick ratio of 1.93, and a current ratio of 3.77. Moreover, the stock's fifty-day moving average price is $36.63, while the 200-day moving average price stands at $39.46.

Institutional Ownership Changes

Recent changes in institutional ownership of Super Micro Computer indicate active trading. In the third quarter, the Emerald Mutual Fund Advisers Trust acquired a new stake worth $87,000. Retirement Systems of Alabama increased its holdings by 2.3%, owning 11,367 shares valued at approximately $4.73 million after acquiring an additional 258 shares. TrueWealth Advisors LLC boosted their position by 99.0%, holding 593 shares after purchasing 295 more. Wahed Invest LLC also increased its stake by 2.9%, owning 12,362 shares valued at $377,000 following the addition of 352 shares. Overall, institutional investors and hedge funds own about 84.06% of the company’s stock.

About Super Micro Computer

Super Micro Computer, Inc. designs and manufactures high-performance server and storage solutions, utilizing a modular and open architecture across various global markets, including the United States, Europe, and Asia. Their product offerings encompass a range of technology solutions including complete server systems, modular blade servers, and server management software.

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