Super Micro Computer (NASDAQ:SMCI) Shares Gap Up – Still a Buy?

Super Micro Computer, Inc. (NASDAQ:SMCI)’s share price gapped up prior to trading on Wednesday . The stock had previously closed at $40.84, but opened at $43.96. Super Micro Computer shares last traded at $43.25, with a volume of 22,881,406 shares.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently commented on the stock. Northland Securities set a $70.00 price target on shares of Super Micro Computer in a report on Thursday, March 6th. Wedbush reaffirmed a “hold” rating on shares of Super Micro Computer in a research report on Tuesday, February 18th. Loop Capital reissued a “buy” rating on shares of Super Micro Computer in a report on Tuesday, February 18th. JPMorgan Chase & Co. upped their price target on Super Micro Computer from $23.00 to $35.00 and gave the company an “underweight” rating in a report on Wednesday, February 12th. Finally, The Goldman Sachs Group lifted their price objective on Super Micro Computer from $32.00 to $36.00 and gave the stock a “neutral” rating in a report on Monday, February 24th. Three equities research analysts have rated the stock with a sell rating, ten have assigned a hold rating, five have issued a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat, Super Micro Computer presently has an average rating of “Hold” and a consensus target price of $52.57.

Super Micro Computer Stock Up 5.2 %

The company has a fifty day simple moving average of $37.41 and a 200-day simple moving average of $38.32. The company has a quick ratio of 1.93, a current ratio of 3.77 and a debt-to-equity ratio of 0.32. The firm has a market cap of $25.49 billion, a P/E ratio of 21.56 and a beta of 1.21.

Insider Buying and Selling

In related news, Director Robert L. Blair sold 19,460 shares of the company’s stock in a transaction on Friday, February 28th. The shares were sold at an average price of $42.58, for a total value of $828,606.80. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, SVP George Kao sold 71,720 shares of the firm’s stock in a transaction dated Wednesday, February 26th. The shares were sold at an average price of $50.48, for a total value of $3,620,425.60. Following the sale, the senior vice president now directly owns 19,449 shares in the company, valued at approximately $981,785.52. This represents a 78.67 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 137,473 shares of company stock valued at $6,771,552. 17.60% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SMCI. Vanguard Group Inc. raised its position in shares of Super Micro Computer by 908.4% during the fourth quarter. Vanguard Group Inc. now owns 61,992,493 shares of the company’s stock valued at $1,889,531,000 after buying an additional 55,845,073 shares during the last quarter. Geode Capital Management LLC grew its stake in Super Micro Computer by 914.7% during the fourth quarter. Geode Capital Management LLC now owns 12,846,717 shares of the company’s stock valued at $390,572,000 after acquiring an additional 11,580,677 shares in the last quarter. FMR LLC bought a new stake in Super Micro Computer in the 4th quarter valued at $292,869,000. Invesco Ltd. lifted its stake in Super Micro Computer by 929.5% in the 4th quarter. Invesco Ltd. now owns 7,542,742 shares of the company’s stock worth $229,903,000 after purchasing an additional 6,810,082 shares in the last quarter. Finally, Northern Trust Corp boosted its holdings in shares of Super Micro Computer by 1,573.8% during the 4th quarter. Northern Trust Corp now owns 4,897,876 shares of the company’s stock valued at $149,287,000 after purchasing an additional 4,605,260 shares during the last quarter. 84.06% of the stock is currently owned by institutional investors.

Super Micro Computer Company Profile

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.