Super Micro Computer (NASDAQ:SMCI) Shares Gap Down After Earnings Miss

Super Micro Computer, Inc. (NASDAQ:SMCI) gapped down prior to trading on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $57.26, but opened at $47.33. Super Micro Computer shares last traded at $46.18, with a volume of 27,064,338 shares changing hands.

The company reported $0.41 EPS for the quarter, missing analysts’ consensus estimates of $0.44 by ($0.03). Super Micro Computer had a net margin of 4.77% and a return on equity of 17.24%. The firm had revenue of $5.76 billion for the quarter, compared to analysts’ expectations of $5.88 billion. During the same period in the previous year, the company earned $6.25 EPS. The company’s revenue was up 8.5% on a year-over-year basis.

Analysts Set New Price Targets

A number of research analysts have issued reports on SMCI shares. Wedbush reaffirmed a “neutral” rating and issued a $30.00 price target on shares of Super Micro Computer in a report on Monday. Wall Street Zen raised shares of Super Micro Computer to a “sell” rating in a report on Thursday, May 8th. KGI Securities started coverage on shares of Super Micro Computer in a report on Wednesday, May 7th. They issued a “neutral” rating for the company. The Goldman Sachs Group raised their price target on shares of Super Micro Computer from $24.00 to $27.00 and gave the stock a “sell” rating in a report on Wednesday. Finally, Barclays reaffirmed an “equal weight” rating and issued a $34.00 price target on shares of Super Micro Computer in a report on Tuesday, May 6th. Three investment analysts have rated the stock with a sell rating, eight have given a hold rating, six have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. According to MarketBeat.com, Super Micro Computer presently has an average rating of “Hold” and a consensus price target of $43.96.

Insider Buying and Selling

In related news, CFO David E. Weigand sold 67,000 shares of the firm’s stock in a transaction on Tuesday, May 20th. The shares were sold at an average price of $44.02, for a total transaction of $2,949,340.00. Following the sale, the chief financial officer owned 88,599 shares in the company, valued at approximately $3,900,127.98. This trade represents a 43.06% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Charles Liang sold 300,000 shares of the firm’s stock in a transaction on Wednesday, June 18th. The shares were sold at an average price of $45.00, for a total transaction of $13,500,000.00. Following the sale, the chief executive officer owned 66,903,640 shares in the company, valued at approximately $3,010,663,800. This represents a 0.45% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 1,067,000 shares of company stock valued at $53,949,340 over the last 90 days. Insiders own 17.60% of the company’s stock.

Institutional Trading of Super Micro Computer

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Blue Trust Inc. grew its position in Super Micro Computer by 16.1% during the second quarter. Blue Trust Inc. now owns 1,557 shares of the company’s stock valued at $76,000 after buying an additional 216 shares during the period. Hartford Investment Management Co. grew its position in Super Micro Computer by 0.8% during the second quarter. Hartford Investment Management Co. now owns 30,976 shares of the company’s stock valued at $1,518,000 after buying an additional 235 shares during the period. Securian Asset Management Inc. grew its position in Super Micro Computer by 0.9% during the second quarter. Securian Asset Management Inc. now owns 26,834 shares of the company’s stock valued at $1,315,000 after buying an additional 246 shares during the period. Wealthcare Advisory Partners LLC grew its position in Super Micro Computer by 1.2% during the second quarter. Wealthcare Advisory Partners LLC now owns 21,798 shares of the company’s stock valued at $1,068,000 after buying an additional 248 shares during the period. Finally, TD Private Client Wealth LLC grew its position in Super Micro Computer by 46.0% during the second quarter. TD Private Client Wealth LLC now owns 800 shares of the company’s stock valued at $39,000 after buying an additional 252 shares during the period. Institutional investors and hedge funds own 84.06% of the company’s stock.

Super Micro Computer Trading Down 18.3%

The company has a market cap of $27.93 billion, a price-to-earnings ratio of 28.19, a price-to-earnings-growth ratio of 2.79 and a beta of 1.46. The company has a quick ratio of 3.95, a current ratio of 6.66 and a debt-to-equity ratio of 0.38. The company’s 50-day moving average is $48.40 and its 200 day moving average is $41.32.

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.