Super Micro Computer (NASDAQ:SMCI) Shares Down 9.2% – Should You Sell?

Super Micro Computer, Inc. (NASDAQ:SMCI)’s stock price was down 9.2% during mid-day trading on Thursday . The company traded as low as $44.18 and last traded at $46.42. Approximately 52,148,527 shares traded hands during mid-day trading, a decline of 31% from the average daily volume of 75,436,344 shares. The stock had previously closed at $51.11.

Wall Street Analysts Forecast Growth

A number of research analysts have recently issued reports on SMCI shares. Northland Capmk raised Super Micro Computer to a “strong-buy” rating in a report on Friday, December 20th. Cfra raised Super Micro Computer from a “hold” rating to a “buy” rating and set a $48.00 target price on the stock in a report on Tuesday, February 11th. Loop Capital reissued a “buy” rating on shares of Super Micro Computer in a report on Tuesday, February 18th. The Goldman Sachs Group boosted their target price on Super Micro Computer from $32.00 to $36.00 and gave the company a “neutral” rating in a report on Monday, February 24th. Finally, StockNews.com raised Super Micro Computer to a “sell” rating in a report on Friday. Three investment analysts have rated the stock with a sell rating, ten have issued a hold rating, five have assigned a buy rating and one has issued a strong buy rating to the company. According to MarketBeat, the stock currently has a consensus rating of “Hold” and a consensus price target of $61.87.

Super Micro Computer Stock Performance

The stock has a 50-day simple moving average of $36.63 and a 200 day simple moving average of $39.68. The company has a debt-to-equity ratio of 0.32, a current ratio of 3.77 and a quick ratio of 1.93. The company has a market capitalization of $24.38 billion, a PE ratio of 20.63 and a beta of 1.30.

Insiders Place Their Bets

In other Super Micro Computer news, SVP George Kao sold 71,720 shares of the business’s stock in a transaction on Wednesday, February 26th. The stock was sold at an average price of $50.48, for a total transaction 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. The trade was a 78.67 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Charles Liang sold 46,293 shares of the company’s stock in a transaction on Wednesday, February 26th. The shares were sold at an average price of $50.17, for a total value of $2,322,519.81. Following the completion of the sale, the chief executive officer now owns 67,403,640 shares in the company, valued at $3,381,640,618.80. This represents a 0.07 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 17.60% of the stock is owned by company insiders.

Institutional Trading of Super Micro Computer

Several institutional investors and hedge funds have recently made changes to their positions in the stock. Park Square Financial Group LLC purchased a new stake in shares of Super Micro Computer in the fourth quarter valued at $475,000. Universal Beteiligungs und Servicegesellschaft mbH purchased a new stake in shares of Super Micro Computer in the fourth quarter valued at $8,785,000. Bernard Wealth Management Corp. purchased a new stake in shares of Super Micro Computer in the fourth quarter valued at $33,000. Carolinas Wealth Consulting LLC purchased a new stake in shares of Super Micro Computer in the fourth quarter valued at $70,000. Finally, B. Riley Wealth Advisors Inc. purchased a new position in Super Micro Computer during the fourth quarter worth about $733,000. 84.06% of the stock is currently owned by hedge funds and other institutional investors.

About Super Micro Computer

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.