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

Super Micro Computer, Inc. (NASDAQ:SMCI)’s stock price gapped down before the market opened 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 research firms have also issued reports on SMCI. Argus lowered shares of Super Micro Computer from a “buy” rating to a “hold” rating in a report on Thursday, October 31st. Mizuho started coverage on shares of Super Micro Computer in a research note on Tuesday, September 17th. They set a “neutral” rating and a $45.00 target price for the company. Barclays dropped their target price on shares of Super Micro Computer from $438.00 to $42.00 and set an “equal weight” rating on the stock in a report on Wednesday, October 2nd. Needham & Company LLC initiated coverage on Super Micro Computer in a research note on Wednesday, September 18th. They issued a “buy” rating and a $60.00 price objective on the stock. Finally, Nomura cut Super Micro Computer from a “buy” rating to a “neutral” rating and set a $93.00 target price for the company. in a research note on Wednesday, July 10th. 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’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $66.89.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of SMCI. Farmers & Merchants Investments Inc. boosted its holdings in Super Micro Computer by 400.0% during the second quarter. Farmers & Merchants Investments Inc. now owns 30 shares of the company’s stock worth $25,000 after purchasing an additional 24 shares during the last quarter. Moser Wealth Advisors LLC purchased a new position in shares of Super Micro Computer in the 2nd quarter worth approximately $25,000. Hazlett Burt & Watson Inc. grew its holdings in shares of Super Micro Computer by 141.2% in the second quarter. Hazlett Burt & Watson Inc. now owns 41 shares of the company’s stock valued at $34,000 after acquiring an additional 24 shares in the last quarter. Larson Financial Group LLC increased its position in shares of Super Micro Computer by 186.7% during the first quarter. Larson Financial Group LLC now owns 43 shares of the company’s stock valued at $43,000 after acquiring an additional 28 shares during the last quarter. Finally, AlphaCentric Advisors LLC bought a new stake in Super Micro Computer during the second quarter worth $42,000. Hedge funds and other institutional investors own 84.06% of the company’s stock.

Super Micro Computer Stock Performance

The firm has a market cap of $14.25 billion, a PE ratio of 12.77 and a beta of 1.28. 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 company has a 50-day simple moving average of $42.72 and a two-hundred day simple moving average of $65.35.

Super Micro Computer (NASDAQ:SMCI) last issued its quarterly earnings results on Tuesday, August 6th. The company reported $0.62 earnings per share for the quarter, missing analysts’ consensus estimates of $0.76 by ($0.14). Super Micro Computer had a return on equity of 30.57% and a net margin of 8.09%. The company had revenue of $5.31 billion during the quarter, compared to analysts’ expectations of $5.32 billion. During the same period last year, the firm posted $0.34 earnings per share. Super Micro Computer’s quarterly revenue was up 142.9% compared to the same quarter last year. 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.