Super Micro Computer in Focus as Major Stake Cuts and Insider Trades Stir Debate

Super Micro Computer in Focus as Major Stake Cuts and Insider Trades Stir Debate

TD Asset Management Inc has adjusted its investment in Super Micro Computer, Inc. (NASDAQ: SMCI), reducing its stake by 3.6% in the second quarter, as disclosed in its latest 13F filing with the SEC. Following the sale of 8,922 shares, the firm now holds 238,723 shares valued at approximately $11.7 million.

Other institutional investors have also altered their positions in Super Micro Computer. GAMMA Investing LLC increased its stake significantly by 129.3% during the first quarter, now owning 14,543 shares worth $498,000 after a purchase of 8,202 additional shares. Similarly, QRG Capital Management Inc. boosted its stake by 9.8%, acquiring 1,594 extra shares, raising its total ownership to 17,870 shares valued at $612,000. The State of Alaska Department of Revenue increased its holdings by 2.8%, now owning 59,015 shares worth $2.02 million, after acquiring an additional 1,620 shares.

In a notable insider transaction, CFO David E. Weigand sold 25,000 shares at an average price of $45.14, totaling $1,128,500. After this transaction, he retains 100,188 shares valued at approximately $4.52 million, reflecting a 19.97% decrease in his position. Moreover, Director Liang Chiu-Chu Sara Liu sold 200,000 shares at $60.00, amounting to $12 million, leading to a 0.49% decrease in her holdings, leaving her with 40,426,120 shares valued at about $2.43 billion. Overall, in the past 90 days, insiders sold 490,000 shares worth nearly $27.9 million.

Currently, Super Micro Computer’s stock is trading at $52.18, down by 3.1%. The company has experienced significant volatility, with a 52-week trading range from $17.25 to $66.44. Financial ratios indicate a solid position, with a market cap of $31.01 billion, a current ratio of 5.25, and a quick ratio of 3.25, alongside a debt-to-equity ratio of 0.74.

Super Micro Computer recently reported its quarterly earnings, showing an earnings per share (EPS) of $0.41, falling short of analysts’ consensus estimates of $0.44. Despite a net margin of 4.77% and a year-over-year revenue increase of 8.5%, the firm reported $5.76 billion in revenue, below analysts’ expectations. For the fiscal year 2026, analysts predict an EPS range of 0.400-0.520.

Analysts have also been adjusting their price targets and ratings on SMCI. Needham & Company LLC has raised its target from $39 to $60 and assigned a “buy” rating, while Sanford C. Bernstein has maintained a “hold” rating. Currently, one analyst rates the stock as a Strong Buy, six as Buy, ten as Hold, and two as Sell, indicating a consensus rating of “Hold” with a target price around $45.36.

Amid these developments, Super Micro Computer continues to innovate in the high-performance server and storage solutions market, which bodes well for its future prospects as it adapts to the evolving technology landscape.

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