Super Micro Computer (NASDAQ:SMCI) Shares Gap Up – Here’s Why

Super Micro Computer, Inc. (NASDAQ:SMCI) shares gapped up prior to trading on Thursday . The stock had previously closed at $48.75, but opened at $50.40. Super Micro Computer shares last traded at $48.91, with a volume of 9,479,340 shares traded.

Analyst Upgrades and Downgrades

Several brokerages recently commented on SMCI. Bank of America downgraded shares of Super Micro Computer from a “buy” rating to a “neutral” rating and dropped their target price for the stock from $109.00 to $70.00 in a report on Wednesday, August 7th. Needham & Company LLC assumed coverage on shares of Super Micro Computer in a report on Wednesday, September 18th. They issued a “buy” rating and a $60.00 target price on the stock. StockNews.com downgraded shares of Super Micro Computer from a “hold” rating to a “sell” rating in a report on Wednesday, October 9th. The Goldman Sachs Group dropped their price objective on shares of Super Micro Computer from $77.50 to $67.50 and set a “neutral” rating on the stock in a report on Thursday, August 8th. Finally, Wells Fargo & Company dropped their price objective 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. Two investment analysts have rated the stock with a sell rating, eleven have given a hold rating and six have given a buy rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $72.45.

Super Micro Computer Stock Performance

The company has a debt-to-equity ratio of 0.32, a quick ratio of 1.93 and a current ratio of 3.77. The firm’s 50-day moving average price is $48.22 and its two-hundred day moving average price is $71.07. The firm has a market capitalization of $2.69 billion, a price-to-earnings ratio of 2.68 and a beta of 1.23.

Super Micro Computer (NASDAQ:SMCI) last issued its earnings results on Tuesday, August 6th. The company reported $0.62 earnings per share for the quarter, missing the consensus estimate of $0.76 by ($0.14). The business had revenue of $5.31 billion for the quarter, compared to analyst estimates of $5.32 billion. Super Micro Computer had a net margin of 8.09% and a return on equity of 30.57%. Super Micro Computer’s revenue was up 142.9% on a year-over-year basis. During the same quarter last year, the firm posted $0.34 earnings per share. Sell-side analysts predict that Super Micro Computer, Inc. will post 2.85 earnings per share for the current year.

Hedge Funds Weigh In On Super Micro Computer

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Farmers & Merchants Investments Inc. boosted its position in Super Micro Computer by 400.0% in the second quarter. Farmers & Merchants Investments Inc. now owns 30 shares of the company’s stock valued at $25,000 after buying an additional 24 shares in the last quarter. Moser Wealth Advisors LLC acquired a new position in Super Micro Computer in the second quarter valued at about $25,000. Bank of New Hampshire acquired a new position in Super Micro Computer in the first quarter valued at about $35,000. VitalStone Financial LLC boosted its position in Super Micro Computer by 250.0% in the first quarter. VitalStone Financial LLC now owns 35 shares of the company’s stock valued at $35,000 after buying an additional 25 shares in the last quarter. Finally, Hazlett Burt & Watson Inc. raised its stake 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 worth $34,000 after acquiring an additional 24 shares during the last quarter. 84.06% of the stock is currently owned by institutional investors and hedge funds.

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.