Super Micro Computer, Inc. (NASDAQ: SMCI) has recently witnessed significant institutional investor activity, with major shareholders adjusting their positions in the company. Assetmark Inc. notably reduced its stake by 97.9% in the fourth quarter, cutting its holdings to 3,123 shares after selling 147,210 shares. At the close of the quarter, Assetmark’s remaining stake was valued at $95,000, according to its latest 13F filing with the Securities & Exchange Commission.
Institutional Investors Reshape Holdings
Several other major institutional investors have also made substantial moves with their positions in Super Micro Computer:
- Sumitomo Mitsui Trust Group Inc. expanded its holdings by 12.6% in Q3, now owning 124,652 shares valued at $51.9 million.
- Victory Capital Management Inc. significantly increased its holdings by 128.2%, bringing its total to 42,642 shares worth $17.76 million.
- OneDigital Investment Advisors LLC nearly doubled its stake, up 108.5%, now holding 1,132 shares valued at $471,000.
- CIBC Asset Management Inc. expanded its stake by 147.3%, reaching 17,132 shares worth $7.13 million.
- Empowered Funds LLC boosted its position by 435%, acquiring 8,870 shares now valued at $3.69 million.
With hedge funds and other institutional investors controlling 84.06% of the company’s stock, Super Micro Computer remains a significant player in institutional portfolios.
Analyst Ratings and Wall Street Outlook
Super Micro Computer’s stock has been the subject of various analyst ratings:
- Loop Capital reaffirmed its “buy” rating on February 18.
- Northland Securities set a price target of $70.00 on March 6.
- StockNews.com upgraded SMCI to a “sell” rating on February 28.
- Wedbush maintained a “hold” rating on February 18.
- Goldman Sachs raised its price target from $32.00 to $36.00, giving the stock a “neutral” rating on February 24.
Overall, analysts remain divided, with three issuing sell ratings, ten assigning hold ratings, five issuing buy ratings, and one marking a strong buy. The consensus rating, according to MarketBeat.com, currently stands at “Hold” with a target price of $52.57.
Stock Performance and Financials
Super Micro Computer’s stock has been on a strong run, trading up 7.9% on Friday. The stock opened at $42.17 and has experienced volatility over the past year, with a 12-month low of $17.25 and a high of $114.78. The company’s market capitalization stands at $25.03 billion, with a P/E ratio of 21.17 and a beta of 1.21.
The company also maintains strong financial health:
- Quick Ratio: 1.93
- Current Ratio: 3.77
- Debt-to-Equity Ratio: 0.32
These metrics suggest a solid liquidity position, allowing for continued growth and stability in operations.
Insider Transactions and Market Sentiment
Company insiders have been actively trading Super Micro Computer stock in recent months:
- Director Robert L. Blair sold 19,460 shares on February 28 at an average price of $42.58, totaling $828,606.
- SVP George Kao sold 71,720 shares on February 26 at an average price of $50.48, bringing the transaction value to $3.62 million.
- Kao retains 19,449 shares, representing a 78.67% decrease in his holdings.
In total, insiders offloaded 137,473 shares in the past three months, amounting to $6.77 million in sales. Despite these insider sales, institutional confidence in SMCI remains strong.
Final Thoughts
Super Micro Computer continues to be a closely watched stock among institutional investors, analysts, and insiders. With a growing AI infrastructure market and strong financials, the company remains a key player in the tech industry.
