Super Micro Computer (NASDAQ:SMCI) Shares Down 6.1% – Should You Sell?

Super Micro Computer, Inc. (NASDAQ:SMCI)’s stock price traded down 6.1% during mid-day trading on Wednesday . The company traded as low as $37.73 and last traded at $38.18. 22,703,948 shares were traded during trading, a decline of 69% from the average session volume of 72,974,786 shares. The stock had previously closed at $40.64.

Wall Street Analysts Forecast Growth

SMCI has been the topic of several analyst reports. The Goldman Sachs Group downgraded Super Micro Computer from a “neutral” rating to a “sell” rating and decreased their price objective for the stock from $40.00 to $32.00 in a report on Monday. Rosenblatt Securities started coverage on Super Micro Computer in a research note on Monday, March 10th. They issued a “buy” rating and a $60.00 price target on the stock. JPMorgan Chase & Co. raised Super Micro Computer from an “underweight” rating to a “neutral” rating and increased their price objective for the company from $35.00 to $45.00 in a research note on Friday, March 21st. Loop Capital reaffirmed a “buy” rating on shares of Super Micro Computer in a research note on Tuesday, February 18th. Finally, Northland Capmk raised shares of Super Micro Computer to a “strong-buy” rating in a research report on Friday, December 20th. Three analysts have rated the stock with a sell rating, ten have assigned a hold rating, five have issued a buy rating and one has given a strong buy rating to the company. According to MarketBeat.com, Super Micro Computer currently has a consensus rating of “Hold” and an average target price of $53.00.

Super Micro Computer Stock Performance

The business’s 50 day simple moving average is $39.07 and its two-hundred day simple moving average is $37.83. The firm has a market capitalization of $22.40 billion, a P/E ratio of 18.89 and a beta of 1.21. The company has a current ratio of 3.77, a quick ratio of 1.93 and a debt-to-equity ratio of 0.32.

Insider Activity

In other news, Director Robert L. Blair sold 19,460 shares of the business’s stock in a transaction dated Friday, February 28th. The shares were sold at an average price of $42.58, for a total value of $828,606.80. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, SVP George Kao sold 71,720 shares of the stock in a transaction that occurred on Wednesday, February 26th. The shares were sold at an average price of $50.48, for a total transaction of $3,620,425.60. Following the transaction, the senior vice president now owns 19,449 shares in the company, valued at approximately $981,785.52. This represents a 78.67 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 137,473 shares of company stock valued at $6,771,552. 17.60% of the stock is currently owned by insiders.

Institutional Trading of Super Micro Computer

A number of hedge funds have recently bought and sold shares of SMCI. Wellington Management Group LLP lifted its stake in shares of Super Micro Computer by 461.9% during the 4th quarter. Wellington Management Group LLP now owns 37,133 shares of the company’s stock worth $1,132,000 after purchasing an additional 30,525 shares during the last quarter. California State Teachers Retirement System lifted its position in Super Micro Computer by 916.9% during the fourth quarter. California State Teachers Retirement System now owns 872,355 shares of the company’s stock valued at $26,589,000 after acquiring an additional 786,568 shares during the last quarter. 111 Capital purchased a new position in Super Micro Computer in the fourth quarter worth $338,000. Wealth Enhancement Advisory Services LLC grew its holdings in Super Micro Computer by 515.8% in the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 21,535 shares of the company’s stock worth $656,000 after purchasing an additional 18,038 shares during the last quarter. Finally, Centaurus Financial Inc. acquired a new position in shares of Super Micro Computer during the fourth quarter worth $206,000. Hedge funds and other institutional investors own 84.06% of the company’s stock.

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.