TLDR
- Super Micro Computer stock jumped 9.3% to $52.39 after breaking above its 50-day moving average for the first time since August.
- The company missed Q2 earnings estimates with $0.41 per share versus expected $0.44, leading to a 30% drop before this recovery.
- CEO Charles Liang sold 200,000 shares for $12 million while insiders collectively offloaded $27.9 million worth of stock over 90 days.
- Analysts give SMCI a consensus Hold rating with price targets ranging from $24 to $52 and an average of $45.36.
- Trading volume decreased 6% despite the rally, with the company maintaining a market cap above $31 billion.
Super Micro Computer stock closed at $52.39 on Wednesday, marking a 9.3% gain during midday trading. The jump came after shares broke above the 50-day simple moving average, a technical resistance level that had held since August.
The rally represents a turnaround for SMCI after a rough patch. The stock lost about 30% of its market value following disappointing Q2 2025 earnings results released in early August.
Trading volume told a different story than the price action. Approximately 48 million shares changed hands during the session, down 6% from the average daily volume of 51.2 million shares. The stock opened near $47.94 and reached an intraday high of $52.48.
The Q2 earnings miss weighed on investor confidence throughout the summer. Super Micro Computer reported earnings of $0.41 per share for the quarter ending August 5th. That fell short of analyst expectations by three cents, as Wall Street had projected $0.44 per share.
Revenue came in at $5.76 billion for the quarter, up 8.5% year-over-year. But that still missed the $5.88 billion analysts were expecting. The company’s net margin stood at 4.77% with a return on equity of 17.14%.
For comparison, the company earned $6.25 per share during the same period last year. The company has issued guidance for Q1 2026 in the range of $0.40 to $0.52 per share. Full-year guidance has also been set but specific numbers weren’t disclosed.
Analyst Ratings Paint Mixed Picture
Wall Street remains divided on SMCI’s prospects. One analyst rates the stock a Strong Buy while six have Buy ratings. Nine analysts assign Hold ratings and two recommend selling.
The consensus rating comes out to Hold. Price targets from analysts range widely, from Goldman Sachs at $24 to Citigroup at $52. The average target sits at $45.36, below the current trading price.
Goldman Sachs maintained its Sell rating while raising its price target from $24 to $27 in early August. Wedbush set a price objective of $30 with a Neutral rating. Citigroup raised its target from $37 to $52 while keeping a Neutral stance.
Several firms upgraded their ratings in recent months. Zacks Research moved SMCI to Hold in mid-August. Sanford C. Bernstein also upgraded to Hold in September.
Insider Selling Raises Questions
CEO Charles Liang sold 200,000 shares on July 28th at an average price of $60 per share. The transaction totaled $12 million. Following the sale, Liang still owns 40.4 million shares worth approximately $2.4 billion. The sale represented a 0.49% decrease in his position.
CFO David Weigand sold 25,000 shares on September 15th at $45.14 per share for $1.13 million. After the transaction, Weigand directly owned 100,188 shares valued at about $4.5 million. This sale reduced his position by nearly 20%.
Over the past 90 days, company insiders sold a total of 490,000 shares worth $27.9 million. Insiders currently own 16.3% of the company’s stock. Institutional investors hold 84.06% of outstanding shares.
The technical breakout above the 50-day moving average suggests traders see potential for continued gains. The stock’s 50-day moving average sits at $46.90 while the 200-day moving average is at $42.66.
SMCI currently trades with a market cap of $31.13 billion. The stock carries a PE ratio of 31.56 and a beta of 1.56. The company maintains a debt-to-equity ratio of 0.74 with a quick ratio of 3.25 and current ratio of 5.25.
Analysts forecast Super Micro Computer will post $1.86 in earnings per share for the current fiscal year. The stock faces competition from companies like Alibaba, which recently announced AI chip developments.
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