Super Micro Computer (NASDAQ:SMCI) Shares Gap Down - Here's What Happened

On Tuesday, Super Micro Computer, Inc. (NASDAQ:SMCI) experienced a notable decline as its shares gapped down before the market opened. The stock finished the previous day at $42.65 but opened at a lower price of $40.59. It later traded at approximately $41.95, with a total trading volume reaching 21,349,898 shares.

Analyst Ratings Changes

Equities research analysts have provided various updates regarding Super Micro Computer's stock. The Goldman Sachs Group notably reduced its price target from $67.50 to $28.00, assigning a "neutral" rating in a report issued on November 6. Meanwhile, Loop Capital raised its target on Super Micro Computer from $35.00 to $40.00, giving the company a "buy" recommendation on January 23. Furthermore, Wedbush updated its rating, moving from a "neutral" stance with a revised target price of $32.00, significantly down from $62.00 as reported on November 4. Cfra increased its rating from "hold" to "buy," setting a new target price of $48.00. Finally, JPMorgan Chase & Co. has adjusted its position, lowering its rating from "neutral" to "underweight" with a revised target of $23.00.

Overall, the rating landscape shows that three analysts rated the stock as a sell, ten as hold, five as buy, and one issued a strong buy rating. According to MarketBeat, Super Micro Computer has an average rating of "Hold" with an average target price of $63.07.

Super Micro Computer Stock Performance

The stock has showcased significant fluctuations, with a fifty-day moving average of $33.56 and a two-hundred-day moving average standing at $40.74. Super Micro Computer holds a market capitalization of approximately $22.77 billion, a price-to-earnings ratio of 19.66, and a beta of 1.30. Its debt-to-equity ratio is at 0.32, complemented by a current ratio of 3.77 and a quick ratio of 1.93.

Hedge Funds Weigh In On Super Micro Computer

Recent trading activity among large investors indicates a strong interest in the company's stock. Charles Schwab Investment Management Inc. increased its position by a staggering 968.4% in the fourth quarter, now holding 3,651,134 shares valued at $111,287,000 after buying an additional 3,309,398 shares. Bank of New York Mellon Corp also expanded its holdings by 798.1% during the same period, bringing its total to 2,944,620 shares worth $89,752,000 after acquiring 2,616,757 additional shares.

State Street Corp raised its stake by 4.3% in the third quarter, stating ownership of 2,138,142 shares, valued at $890,322,000 after an additional purchase of 88,692 shares. Swiss National Bank increased its holdings significantly, up 851.9% to own 1,488,800 shares now worth $45,379,000 after buying 1,332,400 shares. Similarly, Sumitomo Mitsui Trust Group Inc. raised its investment by 956.6%, bringing its current total to 1,317,018 shares valued at $40,143,000 after an additional acquisition of 1,192,366 shares. Institutional investors now own 84.06% of Super Micro Computer's stock.

About Super Micro Computer

Super Micro Computer, Inc., along with its subsidiaries, specializes in developing and manufacturing high-performance server and storage solutions based on modular and open architecture across varying geographical regions including the United States, Europe, and Asia. Its product offerings encompass complete server and storage systems, modular blade servers, workstations, networking devices, and various forms of server management and security software.

stocks, markets, performance