Investors Purchase High Volume of Super Micro Computer Call Options (NASDAQ:SMCI)

Super Micro Computer, Inc. (NASDAQ:SMCI) was the recipient of some unusual options trading on Tuesday. Traders bought 480,857 call options on the stock. This is an increase of 33% compared to the typical volume of 361,494 call options.

Super Micro Computer Stock Performance

Shares of SMCI stock opened at $53.17 on Wednesday. The company has a debt-to-equity ratio of 0.38, a quick ratio of 3.95 and a current ratio of 6.66. The firm has a market cap of $31.73 billion, a P/E ratio of 27.97, a P/E/G ratio of 2.28 and a beta of 1.43. The firm’s 50 day moving average price is $43.67 and its 200-day moving average price is $38.85. Super Micro Computer has a one year low of $17.25 and a one year high of $90.40.

Super Micro Computer (NASDAQ:SMCI) last released its quarterly earnings results on Tuesday, May 6th. The company reported $0.31 EPS for the quarter, topping the consensus estimate of $0.30 by $0.01. Super Micro Computer had a return on equity of 20.41% and a net margin of 5.61%. The business had revenue of $4.60 billion during the quarter, compared to analyst estimates of $5.40 billion. During the same period last year, the business posted $0.66 earnings per share. The company’s quarterly revenue was up 19.5% on a year-over-year basis. As a group, equities research analysts predict that Super Micro Computer will post 1.86 EPS for the current year.

Analysts Set New Price Targets

SMCI has been the topic of a number of research reports. Northland Securities set a $59.00 target price on shares of Super Micro Computer in a research note on Wednesday, May 7th. Mizuho lifted their price objective on Super Micro Computer from $40.00 to $47.00 and gave the stock a “neutral” rating in a research report on Thursday, July 3rd. Wedbush restated a “buy” rating on shares of Super Micro Computer in a report on Wednesday, June 25th. Raymond James Financial assumed coverage on Super Micro Computer in a research note on Wednesday, June 25th. They issued an “outperform” rating for the company. Finally, The Goldman Sachs Group cut shares of Super Micro Computer from a “neutral” rating to a “sell” rating and lowered their price target for the company from $40.00 to $32.00 in a research report on Monday, March 24th. Three analysts have rated the stock with a sell rating, seven have given a hold rating, seven have issued a buy rating and one has given a strong buy rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $42.11.

Insider Activity at Super Micro Computer

In other news, Director Liang Chiu-Chu Sara Liu sold 300,000 shares of the firm’s stock in a transaction dated Wednesday, June 18th. The shares were sold at an average price of $45.00, for a total value of $13,500,000.00. Following the transaction, the director directly owned 66,903,640 shares of the company’s stock, valued at approximately $3,010,663,800. This trade represents a 0.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CFO David E. Weigand sold 67,000 shares of the business’s stock in a transaction dated Tuesday, May 20th. The stock was sold at an average price of $44.02, for a total transaction of $2,949,340.00. Following the transaction, the chief financial officer owned 88,599 shares in the company, valued at $3,900,127.98. The trade was a 43.06% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 667,000 shares of company stock valued at $29,949,340. 17.60% of the stock is owned by insiders.

Institutional Trading of Super Micro Computer

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Eastern Bank purchased a new stake in Super Micro Computer during the 1st quarter worth about $29,000. AlphaQuest LLC increased its stake in shares of Super Micro Computer by 233.0% during the fourth quarter. AlphaQuest LLC now owns 1,089 shares of the company’s stock worth $33,000 after buying an additional 762 shares during the period. Bernard Wealth Management Corp. acquired a new stake in Super Micro Computer in the fourth quarter valued at approximately $33,000. Quarry LP purchased a new position in Super Micro Computer in the fourth quarter worth approximately $34,000. Finally, Central Pacific Bank Trust Division acquired a new position in Super Micro Computer during the 1st quarter worth approximately $34,000. 84.06% of the stock is currently owned by hedge funds and other institutional investors.

Super Micro Computer Company Profile

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.