Super Micro Computer (NASDAQ:SMCI) Stock Price Down 6.2% on Disappointing Earnings

Super Micro Computer, Inc. (NASDAQ:SMCI) traded down 6.2% during trading on Tuesday following a weaker than expected earnings announcement. The stock traded as low as $46.86 and last traded at $47.61. 33,068,777 shares were traded during mid-day trading, a decline of 32% from the average session volume of 48,815,031 shares. The stock had previously closed at $50.75.

The company reported $0.26 EPS for the quarter, missing analysts’ consensus estimates of $0.46 by ($0.20). Super Micro Computer had a net margin of 4.77% and a return on equity of 17.14%. Super Micro Computer has set its Q2 2026 guidance at 0.460-0.540 EPS. FY 2026 guidance at EPS.

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on SMCI shares. Raymond James Financial reiterated an “outperform” rating and issued a $53.00 price objective on shares of Super Micro Computer in a report on Thursday, October 23rd. Wedbush reiterated a “neutral” rating and issued a $30.00 price objective on shares of Super Micro Computer in a report on Monday, August 4th. Needham & Company LLC increased their price objective on Super Micro Computer from $39.00 to $60.00 and gave the stock a “buy” rating in a report on Wednesday, August 6th. Zacks Research upgraded Super Micro Computer to a “hold” rating in a report on Monday, August 11th. Finally, Citigroup reiterated a “neutral” rating and issued a $52.00 price objective (up previously from $37.00) on shares of Super Micro Computer in a report on Friday, July 11th. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, Super Micro Computer currently has a consensus rating of “Hold” and an average price target of $47.57.

Insider Buying and Selling at Super Micro Computer

In other news, SVP George Kao sold 40,000 shares of the firm’s stock in a transaction on Friday, August 22nd. The stock was sold at an average price of $43.88, for a total transaction of $1,755,200.00. Following the completion of the transaction, the senior vice president directly owned 21,820 shares in the company, valued at $957,461.60. This trade represents a 64.70% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO David E. Weigand sold 25,000 shares of the firm’s stock in a transaction on Monday, September 15th. The shares were sold at an average price of $45.14, for a total value of $1,128,500.00. Following the transaction, the chief financial officer owned 100,188 shares of the company’s stock, valued at $4,522,486.32. The trade was a 19.97% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 90,000 shares of company stock valued at $3,890,950 over the last 90 days. Corporate insiders own 16.30% of the company’s stock.

Hedge Funds Weigh In On Super Micro Computer

Several institutional investors and hedge funds have recently modified their holdings of SMCI. Clear Street LLC bought a new position in shares of Super Micro Computer during the second quarter valued at $158,724,000. Norges Bank purchased a new stake in shares of Super Micro Computer during the second quarter valued at $150,395,000. Marshall Wace LLP boosted its position in shares of Super Micro Computer by 596.4% during the second quarter. Marshall Wace LLP now owns 3,437,714 shares of the company’s stock valued at $168,482,000 after buying an additional 2,944,049 shares during the last quarter. Vanguard Group Inc. boosted its position in shares of Super Micro Computer by 3.9% during the first quarter. Vanguard Group Inc. now owns 64,407,769 shares of the company’s stock valued at $2,205,322,000 after buying an additional 2,415,276 shares during the last quarter. Finally, Invesco Ltd. boosted its position in shares of Super Micro Computer by 31.6% during the second quarter. Invesco Ltd. now owns 8,639,784 shares of the company’s stock valued at $423,436,000 after buying an additional 2,073,978 shares during the last quarter. 84.06% of the stock is currently owned by institutional investors.

Super Micro Computer Price Performance

The company has a debt-to-equity ratio of 0.74, a current ratio of 5.25 and a quick ratio of 3.25. The company has a market capitalization of $28.29 billion, a PE ratio of 28.68, a PEG ratio of 1.30 and a beta of 1.55. The firm has a 50-day moving average of $48.39 and a 200 day moving average of $45.73.

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.