Argus has recently reduced Super Micro Computer Inc (SMCI) stock to Hold rating, as announced on October 31, 2024, according to Finviz. Earlier, on September 18, 2024, Needham had initiated the stock to Buy, setting a price target of $600. Mizuho also initiated Neutral rating with a price target of $450. Additionally, JP Morgan reduced Neutral rating on September 6, 2024, with a target price of $500. Barclays analysts, in their report published on September 4, 2024, also reduced Equal Weight rating and set a price target of $693 for Super Micro Computer Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.
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Super Micro Computer Inc (SMCI) Stock Trading Recap
On Tuesday, Super Micro Computer Inc (SMCI) stock saw a modest uptick, ending the day at $27.7 which represents a slight increase of $1.67 or 6.42% from the prior close of $26.03. The stock opened at $25.98 and touched a low of $25.1 during the day, reaching a high of $28. The volume of shares traded was 94.53 million exceeding the average volume of 77.56 million.
SMCI Stock Performance and Moving Averages
In recent trading, Super Micro Computer Inc (SMCI) stock price has shown some volatility, fluctuating -43.61% over the last five trades and -41.98% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by -66.19%, and it has plunged by -43.78% in the previous three months. Currently, SMCI is trading at -34.96%, -36.05%, and -61.51% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.
As of the latest trading close, SMCI, a Technology sector stock, is trading -77.46% below its 52-week high but remains 15.90% above its 52-week low. The Average True Range (ATR) (14 days) of 3.94 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.
Super Micro Computer Inc’s Profitability and Valuation Ratios
Super Micro Computer Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of 8.47% and a profit margin of 8.09%, with a gross margin of -66.19%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.
In terms of valuation, Super Micro Computer Inc’s market capitalization stands at $16.22 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. The stock’s price-to-earnings (P/E) ratio is 13.92, assessing the company’s valuation relative to its earnings. The forward P/E ratio, which uses projected earnings for the next financial year, is 6.43. Additionally, the Price-to-Sales Ratio is 1.09, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 3.18, comparing the market value to the company’s book value.
Understanding Insider Trading
Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 14.54% of Super Micro Computer Inc (SMCI)’s shares, while financial institutions hold 54.42%.
Notable insider trades include FAIRFAX DANIEL W, Director at Super Micro Computer Inc (SMCI), who sold 300 shares on Jun 03 ’24, at $802 each, totaling $0.24 million. On May 30 ’24, LIU TALLY C, Director, sold 500 shares for $839.17 each, amounting to $0.42 million. Additionally, on May 01 ’24, FAIRFAX DANIEL W sold 300 shares at $777.36 each, generating $0.23 million.
