Market Analysis – Reasons for SMCI's Decline

Super Micro Computer plummeted to $850.09 per share this morning, but it remains 12.89% above its mean target price of $753.05. There may still be room for more downwards movement — even after today's -3.0% drop. Analysts are giving the Large-Cap Computer Hardware stock on average rating of buy, with target prices ranging from $250.0 to $1300.0 per share.

The stock has an above average percentage of its shares sold short at 12.0%, and a short ratio of 0.66. The company's insiders own 15.03% of its outstanding shares, which indicates a strong alignment between management and shareholder interests. Finally, we also note that an average number of institutional investors are invested in the stock, with 71.7% of Super Micro Computer's shares being owned by this investor type.

Institutions Invested in Super Micro Computer

Date Reported Holder Percentage Shares Value
2023-12-31 Blackrock Inc. 13% 6,381,749 $5,425,061,178
2023-12-31 Vanguard Group Inc 10% 4,929,065 $4,190,148,998
2023-12-31 Disciplined Growth Investors, Inc. 5% 2,725,280 $2,316,733,348
2023-12-31 State Street Corporation 4% 1,843,055 $1,566,762,674
2023-12-31 Jane Street Group, LLC 2% 1,115,960 $948,666,466
2023-12-31 Geode Capital Management, LLC 2% 1,064,932 $905,288,072
2023-12-31 JP Morgan Chase & Company 2% 922,656 $784,340,663
2023-12-31 Morgan Stanley 2% 895,631 $761,366,980
2023-12-31 Neuberger Berman Group, LLC 1% 636,340 $540,946,287
2023-12-31 Northern Trust Corporation 1% 640,729 $544,677,332

Besides an analyst belief that shares are overpriced, other market factors point to there being mixed market sentiment on Super Micro Computer.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.