Super Micro Computer (NASDAQ:SMCI) Shares Drop 2.4% - Should Investors Be Concerned?

Super Micro Computer, Inc. (NASDAQ:SMCI) experienced a decline of 2.4% in its share price on Thursday. The stock reached a low of $35.66 before settling at $37.96. During the day, about 31,458,495 shares were traded, which is 60% lower than its average daily trading volume of 77,831,883 shares. Prior to this, the stock had closed at $38.90.

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Analysts' Predictions for Growth

• Super Micro Computer Is Now NASDAQ Compliant—Is It Time to Buy?

Recent reports from analysts regarding SMCI stock have shown mixed opinions. JPMorgan Chase & Co. increased their price target for Super Micro shares from $23.00 to $35.00, labeling the company with an "underweight" rating as of February 12. Conversely, Cfra improved Super Micro's rating from "hold" to "buy," setting a target price of $48.00 on February 11. The Goldman Sachs Group raised their price target from $32.00 to $36.00 and maintained a "neutral" rating as of February 24. Northland Capital Markets upgraded Super Micro Computer to a "strong-buy" on December 20. Loop Capital reiterated their "buy" rating on February 18. Overall, three analysts have given a sell rating, ten have rated it hold, five have suggested buying and one rated it strong buy. Current consensus averages a "Hold" rating and a price target of $61.87, as reported by MarketBeat.com.

Stock Price Decline and Current Metrics

• 3 Server Stocks Set to Capture $40B in AI Revenue by 2025

The company has a market capitalization of $21.58 billion and a price-to-earnings ratio of 18.23, with a beta of 1.21. The fifty-day moving average price stands at $36.89, while the two-hundred-day moving average is at $38.97. Financial ratios include a current ratio of 3.77, a quick ratio of 1.93, and a debt-to-equity ratio of 0.32.

Insider Transactions

In related corporate news, Senior Vice President George Kao sold 71,720 shares of Super Micro stock on February 26, at an average price of $50.48, amounting to $3,620,425.60. After this transaction, he retains 19,449 shares valued at $981,785.52, indicating a significant change of 78.67% in his holdings. The details were disclosed in a filing with the Securities and Exchange Commission. Additionally, Director Robert L. Blair sold 19,460 shares on February 28 for an average price of $42.58, totaling $828,606.80. In total, over the past 90 days, insiders have sold 137,473 shares valued at approximately $6,771,552, with corporate insiders holding 17.60% of company shares.

Institutional Investors' Movements

• Super Micro Computer Remains Solid Amid Market Flunctuations

Several hedge funds have recently made changes to their stakes in SMCI. Salem Investment Counselors Inc. entered a new position worth about $30,000 in the stock during the fourth quarter. Trust Co. of Vermont notably increased its investment by 900%, now owning 1,000 shares worth $30,000. Similarly, Parkside Financial Bank & Trust boosted its holdings by 2,890.9%, holding 987 shares worth $30,000 after adding 954 shares. Larson Financial Group LLC also increased its stake by 902%, now owning 992 shares worth $30,000. Toth Financial Advisory Corp also made a new investment in the stock valued at about $31,000. Institutional investors and hedge funds collectively hold 84.06% of Super Micro Computer's stock.

About Super Micro Computer

Super Micro Computer, Inc. operates alongside its subsidiaries to develop and manufacture high-performance server and storage solutions using modular and open architecture across various locations including the United States, Europe, and Asia. Their offerings span a variety of products including complete servers, storage systems, modular blade servers, workstations, networking devices, server subsystems, and server management and security software.

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