Super Micro Computer (NASDAQ:SMCI) Trading Down 25.4% Following Analyst Downgrade

Super Micro Computer, Inc. (NASDAQ:SMCI)’s stock price fell 25.4% during trading on Wednesday after The Goldman Sachs Group lowered their price target on the stock from $67.50 to $28.00. The Goldman Sachs Group currently has a neutral rating on the stock. Super Micro Computer traded as low as $20.20 and last traded at $20.66. 56,023,266 shares traded hands during mid-day trading, a decline of 31% from the average session volume of 80,633,508 shares. The stock had previously closed at $27.70.

A number of other research analysts also recently weighed in on SMCI. Wells Fargo & Company cut their price target on shares of Super Micro Computer from $65.00 to $37.50 and set an “equal weight” rating on the stock in a report on Wednesday, August 28th. JPMorgan Chase & Co. lowered Super Micro Computer from a “neutral” rating to an “underweight” rating and lowered their price objective for the company from $50.00 to $23.00 in a report on Wednesday. Susquehanna boosted their target price on Super Micro Computer from $28.50 to $32.50 and gave the stock a “negative” rating in a report on Monday, July 15th. Rosenblatt Securities reiterated a “buy” rating and set a $130.00 price target on shares of Super Micro Computer in a report on Wednesday, August 7th. Finally, Loop Capital reduced their price objective on shares of Super Micro Computer from $150.00 to $100.00 and set a “buy” rating for the company in a research note on Monday, September 23rd. Three equities research analysts have rated the stock with a sell rating, eleven have issued a hold rating and four have assigned a buy rating to the company. According to MarketBeat.com, Super Micro Computer presently has a consensus rating of “Hold” and an average price target of $66.89.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Sequoia Financial Advisors LLC bought a new stake in shares of Super Micro Computer in the 1st quarter worth about $283,000. Central Pacific Bank Trust Division bought a new stake in Super Micro Computer during the first quarter worth about $227,000. Chevy Chase Trust Holdings LLC acquired a new stake in shares of Super Micro Computer during the first quarter worth approximately $919,000. Larson Financial Group LLC boosted its holdings in shares of Super Micro Computer by 186.7% in the 1st quarter. Larson Financial Group LLC now owns 43 shares of the company’s stock worth $43,000 after acquiring an additional 28 shares in the last quarter. Finally, Signaturefd LLC grew its position in Super Micro Computer by 85.0% during the 1st quarter. Signaturefd LLC now owns 851 shares of the company’s stock worth $860,000 after acquiring an additional 391 shares during the last quarter. Institutional investors own 84.06% of the company’s stock.

Super Micro Computer Price Performance

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 has a market capitalization of $12.70 billion, a price-to-earnings ratio of 11.40 and a beta of 1.28. The stock has a fifty day moving average of $43.36 and a two-hundred day moving average of $65.69.

Super Micro Computer (NASDAQ:SMCI) last released its quarterly earnings results on Tuesday, August 6th. The company reported $0.62 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates 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 quarterly revenue was up 142.9% compared to the same quarter last year. During the same period in the prior year, the firm earned $0.34 earnings per share. As a group, equities research analysts forecast that Super Micro Computer, Inc. will post 2.85 earnings per share for the current 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.