Super Micro Computer (NASDAQ:SMCI) Shares Gap Down After Analyst Downgrade

Super Micro Computer, Inc. (NASDAQ:SMCI)’s share price gapped down prior to trading on Wednesday after The Goldman Sachs Group lowered their price target on the stock from $67.50 to $28.00. The stock had previously closed at $27.70, but opened at $20.97. The Goldman Sachs Group currently has a neutral rating on the stock. Super Micro Computer shares last traded at $20.93, with a volume of 23,633,508 shares.

Several other brokerages have also recently commented on SMCI. Mizuho started coverage on Super Micro Computer in a report on Tuesday, September 17th. They issued a “neutral” rating and a $45.00 target price on the stock. Wedbush reiterated a “neutral” rating and set a $32.00 price objective (down from $62.00) on shares of Super Micro Computer in a research report on Monday. Needham & Company LLC began coverage on shares of Super Micro Computer in a research note on Wednesday, September 18th. They set a “buy” rating and a $60.00 target price for the company. JPMorgan Chase & Co. cut shares of Super Micro Computer from a “neutral” rating to an “underweight” rating and cut their price target for the company from $50.00 to $23.00 in a research report on Wednesday. Finally, Bank of America lowered Super Micro Computer from a “buy” rating to a “neutral” rating and lowered their price objective for the stock from $109.00 to $70.00 in a research report on Wednesday, August 7th. Three research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and four have assigned a buy rating to the company. According to MarketBeat, Super Micro Computer has a consensus rating of “Hold” and an average target price of $66.89.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. Sequoia Financial Advisors LLC bought a new stake in Super Micro Computer during the first quarter worth $283,000. Central Pacific Bank Trust Division purchased a new stake in shares of Super Micro Computer in the first quarter valued at about $227,000. Chevy Chase Trust Holdings LLC bought a new position in shares of Super Micro Computer during the first quarter valued at about $919,000. Larson Financial Group LLC boosted its holdings in Super Micro Computer by 186.7% during the first quarter. Larson Financial Group LLC now owns 43 shares of the company’s stock worth $43,000 after purchasing an additional 28 shares during the last quarter. Finally, Signaturefd LLC boosted its holdings in Super Micro Computer by 85.0% during the first quarter. Signaturefd LLC now owns 851 shares of the company’s stock worth $860,000 after purchasing an additional 391 shares during the last quarter. 84.06% of the stock is owned by institutional investors.

Super Micro Computer Stock Down 18.1 %

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 firm has a market capitalization of $12.70 billion, a P/E ratio of 11.40 and a beta of 1.28. The stock’s 50-day simple moving average is $43.36 and its 200-day simple moving average is $65.69.

Super Micro Computer (NASDAQ:SMCI) last released its earnings results on Tuesday, August 6th. The company reported $0.62 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.76 by ($0.14). 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 net margin of 8.09% and a return on equity of 30.57%. The business’s revenue was up 142.9% on a year-over-year basis. During the same period in the prior year, the company earned $0.34 earnings per share. As a group, research analysts predict that Super Micro Computer, Inc. will post 2.85 earnings per share for the current fiscal year.

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.