Argus Initiates Buy Rating on Super Micro Computer, Inc.

Market Analysts Start Tracking Super Micro Computer

Financial research company Argus has recently commenced coverage on shares of Super Micro Computer (NASDAQ: SMCI) with a bullish outlook. In a report issued on Wednesday, Argus gave Super Micro Computer a 'buy' rating along with a significant price objective of $1,350.00.

Other Analysts Weigh In

Super Micro Computer has also been the subject of analysis by other research firms. Bank of America started coverage on the tech company’s shares issuing a buy rating and setting the price target at $1,040.00. Northland Securities similarly expressed confidence in Super Micro Computer, raising their price objective from $450.00 to $625.00, and handing out an 'outperform' rating. Barclays went further by increasing their price target from $691.00 to $961.00 and assigning an 'overweight' rating. Additionally, Rosenblatt Securities proposed an upbeat outlook with a raised target price of $1,300.00, maintaining a 'buy' recommendation. Conversely, Goldman Sachs initiated coverage with a neutral stance, assigning a price target of $941.00.

Stock Performance Details

Super Micro Computer's stock debuted at $1,140.01 on Wednesday and has recently been affected by market movements, indicating a 1.7% drop. However, the company enjoys a robust financial health with a debt-to-equity ratio standing at 0.03. The firm's habitual financial metrics, such as the current and quick ratios, are 2.43 and 1.19 respectively, reflecting stability. With a market capitalization of $63.76 billion and P/E ratio at 88.99, the company's past year performance ranged between a low of $87.25 and a high of $1,229.00.

Earnings Record Impressions

The latest quarterly earnings report from Super Micro Computer surfaced on January 29th, showing a sweeping growth in revenue and earnings per share (EPS). The company reported an EPS of $5.59, which outpaced the consensus estimate of $4.94. Revenue soared to $3.66 billion, overpowering the expected $2.80 billion. Super Micro Computer relished a 103% revenue increase compared to the prior year, with a net margin of 7.92% and an impressive return on equity of 32.34%. Moving forward, analysts anticipate an EPS of 19.66 for the current fiscal year.

Insight into Insider Activity

There's been notable insider trading at Super Micro Computer, with Senior VP Don W. Clegg selling 28,727 shares worth over $25 million. Post-transaction, Clegg holds 2,110 shares, highlighting continued investment in the company's future. Other insider sales involve Director Sherman Tuan offloading 5,000 shares at a similar price point.

Institutional Investors' Stance

Majority stake in Super Micro Computer is firmly held by institutional investors, comprising around 72.75% ownership. Over recent times, various institutional investors have altered their holdings, with some increasing their shares modestly, indicating a positive sentiment around the company's stock.

Company Profile Overview

Super Micro Computer prides itself on developing high-performance server solutions with a focus on modular and open architecture. Their product range spans servers, storage systems, networking devices, and management software to cater to a broad technology industry.

coverage, initiated, Argus