Super Micro Computer (NASDAQ:SMCI) Shares Gap Down - Should You Sell?

Shares of Super Micro Computer, Inc. (NASDAQ:SMCI - Get Free Report) gapped down prior to trading on Monday . The stock had previously closed at $42.15, but opened at $40.81. Super Micro Computer shares last traded at $41.39, with a volume of 14,455,115 shares changing hands.

Analysts Set New Price Targets

Several brokerages have issued reports on SMCI. Northland Securities set a $70.00 price objective on shares of Super Micro Computer in a research report on Thursday, March 6th. Rosenblatt Securities began coverage on shares of Super Micro Computer in a research note on Monday, March 10th. They set a "buy" rating and a $60.00 target price for the company. The Goldman Sachs Group cut Super Micro Computer from a "neutral" rating to a "sell" rating and dropped their price target for the company from $40.00 to $32.00 in a research report on Monday. Cfra raised Super Micro Computer from a "hold" rating to a "buy" rating and set a $48.00 price objective for the company in a research note on Tuesday, February 11th. Finally, Northland Capmk upgraded Super Micro Computer to a "strong-buy" rating in a research note on Friday, December 20th. Three analysts have rated the stock with a sell rating, ten have issued a hold rating, five have assigned a buy rating and one has given a strong buy rating to the stock. According to MarketBeat, Super Micro Computer presently has a consensus rating of "Hold" and an average target price of $53.00.

Super Micro Computer Stock Down 2.6 %

The stock has a market cap of $24.12 billion, a price-to-earnings ratio of 20.40 and a beta of 1.21. 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's 50 day moving average is $38.87 and its two-hundred day moving average is $37.83.

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Insider Activity

In other news, CEO Charles Liang sold 46,293 shares of the firm's stock in a transaction on Wednesday, February 26th. The stock was sold at an average price of $50.17, for a total transaction of $2,322,519.81. Following the sale, the chief executive officer now owns 67,403,640 shares in the company, valued at $3,381,640,618.80. This trade represents a 0.07 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, SVP George Kao sold 71,720 shares of Super Micro Computer stock in a transaction on Wednesday, February 26th. The shares were sold at an average price of $50.48, for a total value of $3,620,425.60. Following the completion of the sale, the senior vice president now directly owns 19,449 shares of the company's stock, valued at approximately $981,785.52. This represents a 78.67 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 137,473 shares of company stock valued at $6,771,552 over the last 90 days. Insiders own 17.60% of the company's stock.

Institutional Trading of Super Micro Computer

A number of hedge funds have recently added to or reduced their stakes in SMCI. Vanguard Group Inc. boosted its position in shares of Super Micro Computer by 908.4% in the fourth quarter. Vanguard Group Inc. now owns 61,992,493 shares of the company's stock worth $1,889,531,000 after acquiring an additional 55,845,073 shares during the last quarter. Geode Capital Management LLC boosted its holdings in shares of Super Micro Computer by 914.7% in the 4th quarter. Geode Capital Management LLC now owns 12,846,717 shares of the company's stock valued at $390,572,000 after purchasing an additional 11,580,677 shares during the last quarter. FMR LLC purchased a new stake in shares of Super Micro Computer during the 4th quarter valued at $292,869,000. Invesco Ltd. increased its holdings in shares of Super Micro Computer by 929.5% during the 4th quarter. Invesco Ltd. now owns 7,542,742 shares of the company's stock worth $229,903,000 after buying an additional 6,810,082 shares during the last quarter. Finally, Northern Trust Corp raised its position in shares of Super Micro Computer by 1,573.8% in the 4th quarter. Northern Trust Corp now owns 4,897,876 shares of the company's stock worth $149,287,000 after buying an additional 4,605,260 shares during the period. 84.06% of the stock is owned by institutional investors and hedge funds.

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.