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

Super Micro Computer, Inc. (NASDAQ:SMCI)’s share 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 traded.

Other equities research analysts have also recently issued research reports about the company. Wedbush restated a “neutral” rating and set a $32.00 target price (down previously from $62.00) on shares of Super Micro Computer in a research note on Monday. Bank of America cut Super Micro Computer from a “buy” rating to a “neutral” rating and cut their target price for the stock from $109.00 to $70.00 in a research report on Wednesday, August 7th. Needham & Company LLC began coverage on Super Micro Computer in a research note on Wednesday, September 18th. They set a “buy” rating and a $60.00 price target on the stock. Nomura cut Super Micro Computer from a “buy” rating to a “neutral” rating and set a $93.00 price objective for the company. in a research note on Wednesday, July 10th. Finally, JPMorgan Chase & Co. lowered shares of Super Micro Computer from a “neutral” rating to an “underweight” rating and lowered their target price for the stock from $50.00 to $23.00 in a research report on Wednesday. Three equities research analysts have rated the stock with a sell rating, eleven have given a hold rating and four have given a buy rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $66.89.

Institutional Investors Weigh In On Super Micro Computer

Institutional investors and hedge funds have recently modified their holdings of the company. Farmers & Merchants Investments Inc. boosted its position 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 in the last quarter. Moser Wealth Advisors LLC acquired a new position in Super Micro Computer during the second quarter worth about $25,000. VitalStone Financial LLC raised its position in Super Micro Computer by 250.0% during the first quarter. VitalStone Financial LLC now owns 35 shares of the company’s stock worth $35,000 after acquiring an additional 25 shares during the last quarter. Hazlett Burt & Watson Inc. lifted 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 purchasing an additional 24 shares in the last quarter. Finally, Larson Financial Group LLC grew its position in shares of Super Micro Computer by 186.7% in the first quarter. Larson Financial Group LLC now owns 43 shares of the company’s stock valued at $43,000 after purchasing an additional 28 shares during the last quarter. Institutional investors and hedge funds own 84.06% of the company’s stock.

Super Micro Computer Stock Performance

The company has a current ratio of 3.77, a quick ratio of 1.93 and a debt-to-equity ratio of 0.32. The firm has a market capitalization of $12.70 billion, a PE ratio of 11.40 and a beta of 1.28. The stock’s 50 day moving average price is $43.36 and its two-hundred day moving average price is $65.69.

Super Micro Computer (NASDAQ:SMCI) last released its quarterly 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). 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 for the quarter, compared to analysts’ expectations of $5.32 billion. During the same period in the previous year, the business posted $0.34 EPS. The business’s quarterly revenue was up 142.9% on a year-over-year basis. On average, equities analysts expect 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.