Super Micro Computer (NASDAQ:SMCI) Given Buy Rating at Rosenblatt Securities

Super Micro Computer (NASDAQ:SMCI)‘s stock had its “buy” rating restated by research analysts at Rosenblatt Securities in a research note issued to investors on Friday, Benzinga reports. They currently have a $51.00 price objective on the stock. Rosenblatt Securities‘s target price would indicate a potential upside of 43.38% from the stock’s current price.

A number of other analysts have also commented on the stock. Citigroup reiterated a “neutral” rating and issued a $45.00 price target (up from $39.00) on shares of Super Micro Computer in a research note on Thursday, October 8th. The Goldman Sachs Group restated a “sell” rating and set a $34.00 price objective (up from $30.00) on shares of Super Micro Computer in a research report on Wednesday, August 12th. Needham & Company LLC reaffirmed a “buy” rating and issued a $46.00 target price on shares of Super Micro Computer in a research report on Wednesday, August 12th. Weiss Ratings reiterated a “hold (c)” rating on shares of Super Micro Computer in a research note on Monday, September 21st. Finally, Mizuho increased their price target on Super Micro Computer from $35.00 to $43.00 and gave the company a “neutral” rating in a report on Tuesday, October 6th. Four equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $43.07.

Super Micro Computer Stock Performance

Shares of NASDAQ:SMCI traded up $3.10 during midday trading on Friday, reaching $35.57. 81,957,721 shares of the company’s stock traded hands, compared to its average volume of 43,711,770. The company has a debt-to-equity ratio of 0.65, a quick ratio of 2.07 and a current ratio of 3.87. Super Micro Computer has a one year low of $19.48 and a one year high of $54.53. The company has a market cap of $23.37 billion, a price-to-earnings ratio of 11.12, a P/E/G ratio of 0.62 and a beta of 2.02. The stock has a 50 day moving average of $38.87 and a 200 day moving average of $33.64.

Super Micro Computer (NASDAQ:SMCI) last released its quarterly earnings data on Tuesday, August 11th. The company reported $1.70 EPS for the quarter, topping the consensus estimate of $0.92 by $0.78. Super Micro Computer had a return on equity of 27.83% and a net margin of 5.71%. The company had revenue of $11.12 billion during the quarter, compared to the consensus estimate of $11.60 billion. During the same period last year, the company earned $0.31 EPS. Super Micro Computer’s revenue for the quarter was up 93.2% on a year-over-year basis. Super Micro Computer has set its Q1 2027 guidance at 1.010-1.100 EPS. As a group, equities research analysts anticipate that Super Micro Computer will post 3.94 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Chiu-Chu Liang sold 100,000 shares of the business’s stock in a transaction that occurred on Wednesday, October 7th. The shares were sold at an average price of $45.02, for a total transaction of $4,502,000.00. Following the completion of the sale, the director directly owned 337,506 shares in the company, valued at approximately $15,194,520.12. The trade was a 22.86% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Charles Liang sold 100,000 shares of the business’s stock in a transaction that occurred on Wednesday, October 7th. The shares were sold at an average price of $45.02, for a total transaction of $4,502,000.00. Following the sale, the chief executive officer owned 337,506 shares of the company’s stock, valued at $15,194,520.12. This trade represents a 22.86% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 400,000 shares of company stock worth $16,442,000. 16.10% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Super Micro Computer

A number of hedge funds have recently modified their holdings of the business. Clarity Wealth Advisors LLC raised its position in shares of Super Micro Computer by 4.6% during the third quarter. Clarity Wealth Advisors LLC now owns 23,120 shares of the company’s stock valued at $950,000 after buying an additional 1,010 shares during the last quarter. Capstone Capital Management Ltd boosted its position in shares of Super Micro Computer by 49.1% during the third quarter. Capstone Capital Management Ltd now owns 41,838 shares of the company’s stock worth $1,718,000 after acquiring an additional 13,771 shares during the last quarter. Nisa Investment Advisors LLC boosted its position in shares of Super Micro Computer by 15.1% during the third quarter. Nisa Investment Advisors LLC now owns 87,022 shares of the company’s stock worth $3,574,000 after acquiring an additional 11,448 shares during the last quarter. Prime Capital Investment Advisors LLC boosted its position in shares of Super Micro Computer by 3.4% during the third quarter. Prime Capital Investment Advisors LLC now owns 61,080 shares of the company’s stock worth $2,509,000 after acquiring an additional 2,005 shares during the last quarter. Finally, Sumitomo Mitsui DS Asset Management Company Ltd grew its stake in Super Micro Computer by 33.7% during the third quarter. Sumitomo Mitsui DS Asset Management Company Ltd now owns 84,172 shares of the company’s stock valued at $3,457,000 after acquiring an additional 21,234 shares in the last quarter. Institutional investors own 84.06% of the company’s stock.

Super Micro Computer News Summary

Here are the key news stories impacting Super Micro Computer this week:

• Positive Sentiment: Revenue guidance was raised sharply: Supermicro now expects fiscal Q1 revenue of $18.5 billion to $19.5 billion, up from its previous forecast of $14.5 billion to $15.5 billion and well above the roughly $14.9 billion analyst consensus. The company also indicated that gross margins should exceed its prior expectations. Super Micro expects first-quarter revenue above estimates
• Positive Sentiment: AI demand remains the primary catalyst: Management attributed the stronger outlook to surging demand for AI platforms and a record backlog of orders. The preliminary update was viewed as evidence that spending on AI infrastructure remains robust, lifting Supermicro and helping comparable server companies such as Dell and Hewlett Packard Enterprise. Why Super Micro Computer Stock Popped Today
• Positive Sentiment: Additional growth opportunities were announced: Supermicro is working with Nokia and NVIDIA on AI-RAN infrastructure for 5G networks, including low-latency edge AI services and a potential path toward AI-native 6G applications. An analyst at Rosenblatt Securities also reaffirmed a Buy rating following the preliminary results. Supermicro Brings NVIDIA Aerial RAN Computer Solutions to the Network Edge with Nokia
• Neutral Sentiment: The preliminary figures are scheduled for further discussion when Supermicro reports results on November 3. Investors will likely focus on whether the unusually strong revenue outlook converts into sustainable margins and cash flow.
• Negative Sentiment: Some coverage remains cautious because of Supermicro’s volatile trading history, questions surrounding its cash position and an ongoing board review. The company must also execute against elevated expectations after the large guidance increase. SMCI stock soars on sales forecast hike but analysts remain cautious

Super Micro Computer Company Profile

Super Micro Computer, Inc develops and sells high-performance server and storage systems for data centers, cloud computing, enterprise IT, telecommunications, and other demanding computing environments. The company offers application-optimized servers, workstations, blade and rack systems, storage solutions, networking products, and related infrastructure.

Supermicro also provides systems designed for artificial intelligence, machine learning, accelerated computing, and other workloads that use graphics processing units and specialized processors.