Super Micro Computer (NASDAQ:SMCI) Shares Down 2.4% - Time to Sell?

Super Micro Computer, Inc. (NASDAQ:SMCI) experienced a decline of 2.4% in its stock price during trading on Thursday. The stock reached a low of $35.66 before settling at $37.96. Approximately 31,458,495 shares were traded, which marks a significant drop of 60% compared to the average daily trading volume of 77,831,883 shares. The stock had previously closed at $38.90.

Wall Street Analysts Forecast Growth

Analysts from various financial institutions have recently provided their assessments on SMCI stocks. For instance, JPMorgan Chase & Co. raised their price target on Super Micro Computer from $23.00 to $35.00 while assigning the company an "underweight" rating in a report issued on February 12th. On the other hand, Cfra upgraded their rating from "hold" to "buy" with a price objective of $48.00 on February 11th. Additionally, The Goldman Sachs Group increased their target from $32.00 to $36.00, giving a "neutral" rating on February 24th. Northland Capital Markets also enhanced their rating to "strong-buy" on December 20th. In summary, three analysts have recommended selling the stock, while ten rated it as a hold, five as a buy, and one as a strong buy. Presently, as per MarketBeat.com, SMCI holds an average rating of "Hold" with a consensus price target set at $61.87.

Super Micro Computer Trading Down 6.5%

The market capitalization of Super Micro Computer stands at approximately $21.58 billion, with a price-to-earnings ratio of 18.23 and a beta factor of 1.21. The company’s recent 50-day moving average price is $36.89, while the 200-day moving average is $38.97. Financial metrics reveal a current ratio of 3.77, a quick ratio of 1.93, and a manageable debt-to-equity ratio of 0.32.

Insiders Place Their Bets

In terms of insider trading, Senior Vice President George Kao sold 71,720 shares of Super Micro Computer stock in a transaction dated February 26th at an average price of $50.48, accumulating a total of $3,620,425.60 from the sale. Following this transaction, Kao holds 19,449 shares valued at approximately $981,785.52, which is a reduction of 78.67% in his position. This transaction was made public in documents filed with the Securities and Exchange Commission. Similarly, on February 28th, Director Robert L. Blair sold 19,460 shares at an average price of $42.58, totaling $828,606.80. Over the past three months, insiders have sold a total of 137,473 shares worth $6,771,552. Notably, corporate insiders own about 17.60% of the company's stock.

Institutional Inflows and Outflows

Recent activity from institutional investors reflects some changes in holdings of SMCI. For example, Salem Investment Counselors Inc. acquired a new position valued at approximately $30,000 during the fourth quarter. Trust Co. of Vermont increased its stake by 900.0%, now owning 1,000 shares worth $30,000 after purchasing an additional 900 shares. Parkside Financial Bank & Trust also showed interest by increasing its holdings by 2,890.9% during the same period, owning now 987 shares worth $30,000 after acquiring 954 additional shares. Other investors have similarly expanded their positions, showcasing strong institutional interest in SMCI stock, which currently sees 84.06% of its ownership held by institutional investors and hedge funds.

About Super Micro Computer

Super Micro Computer, Inc., along with its subsidiaries, specializes in developing and manufacturing high-performance server and storage solutions. The company operates on a global scale, with a presence in the United States, Europe, and Asia. Their product offerings include complete server systems, storage devices, modular blade servers, workstations, networking equipment, as well as server management and security software.

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