Super Micro Computer (NASDAQ:SMCI) Trading Down 23.6% Following Analyst Downgrade

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI) fell 23.6% during mid-day trading on Wednesday after Wells Fargo & Company lowered their price target on the stock from $650.00 to $375.00. Wells Fargo & Company currently has an equal weight rating on the stock. Super Micro Computer traded as low as $407.52 and last traded at $418.36. 14,682,948 shares traded hands during trading, an increase of 77% from the average session volume of 8,281,683 shares. The stock had previously closed at $547.64.

A number of other equities analysts have also commented on the company. StockNews.com lowered Super Micro Computer from a “hold” rating to a “sell” rating in a report on Thursday, May 9th. Barclays reaffirmed an “overweight” rating and set a $693.00 target price on shares of Super Micro Computer in a report on Wednesday. The Goldman Sachs Group cut their price objective on shares of Super Micro Computer from $775.00 to $675.00 and set a “neutral” rating for the company in a research report on Thursday, August 8th. Susquehanna upped their target price on shares of Super Micro Computer from $285.00 to $325.00 and gave the stock a “negative” rating in a report on Monday, July 15th. Finally, JPMorgan Chase & Co. cut their price target on shares of Super Micro Computer from $1,150.00 to $950.00 and set an “overweight” rating for the company in a report on Tuesday, August 6th. Two research analysts have rated the stock with a sell rating, eight have issued a hold rating and seven have issued a buy rating to the company’s stock. According to data from MarketBeat.com, Super Micro Computer currently has a consensus rating of “Hold” and an average price target of $840.36.

Insider Activity at Super Micro Computer

In other Super Micro Computer news, Director Daniel W. Fairfax sold 300 shares of the stock in a transaction that occurred on Monday, June 3rd. The shares were sold at an average price of $802.00, for a total transaction of $240,600.00. Following the transaction, the director now directly owns 18,887 shares in the company, valued at $15,147,374. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. 17.60% of the stock is currently owned by insiders.

Institutional Trading of Super Micro Computer

Several institutional investors have recently added to or reduced their stakes in the business. New Century Financial Group LLC bought a new stake in shares of Super Micro Computer in the 2nd quarter valued at about $344,000. Cetera Investment Advisers lifted its position in Super Micro Computer by 24.5% in the second quarter. Cetera Investment Advisers now owns 34,324 shares of the company’s stock valued at $28,123,000 after purchasing an additional 6,749 shares during the last quarter. Granite Bay Wealth Management LLC purchased a new stake in shares of Super Micro Computer during the second quarter valued at approximately $269,000. B. Riley Wealth Advisors Inc. grew its holdings in shares of Super Micro Computer by 4.1% in the second quarter. B. Riley Wealth Advisors Inc. now owns 7,856 shares of the company’s stock worth $6,437,000 after purchasing an additional 313 shares during the last quarter. Finally, Regal Investment Advisors LLC purchased a new position in shares of Super Micro Computer in the second quarter worth $378,000. 84.06% of the stock is currently owned by hedge funds and other institutional investors.

Super Micro Computer Stock Down 19.0 %

The company has a market capitalization of $24.81 billion, a P/E ratio of 24.86, a price-to-earnings-growth ratio of 0.71 and a beta of 1.27. The company has a current ratio of 3.77, a quick ratio of 1.93 and a debt-to-equity ratio of 0.32. The stock’s fifty day moving average is $725.34 and its 200 day moving average is $837.06.

Super Micro Computer’s stock is scheduled to split on the morning of Tuesday, October 1st. The 10-1 split was announced on Tuesday, August 6th. The newly issued shares will be issued to shareholders after the market closes on Monday, September 30th.

Super Micro Computer (NASDAQ:SMCI) last posted its earnings results on Tuesday, August 6th. The company reported $6.25 earnings per share (EPS) for the quarter, missing the consensus estimate of $7.63 by ($1.38). The business had revenue of $5.31 billion during the quarter, compared to the consensus estimate of $5.32 billion. Super Micro Computer had a return on equity of 30.57% and a net margin of 8.09%. The firm’s revenue for the quarter was up 142.9% compared to the same quarter last year. During the same period in the previous year, the business earned $3.43 earnings per share. Research analysts predict that Super Micro Computer, Inc. will post 28.5 EPS for the current fiscal year.

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.