Is Super Micro Computer Inc (SMCI) Stock a Good Buy for Short-term Investors?

A share price of Super Micro Computer Inc [SMCI] is currently trading at $445.40, up 7.92%. An important factor to consider is whether the stock is rising or falling in short-term value. The SMCI shares have gain 5.18% over the last week, with a monthly amount drifted -17.67%, and not seem to be holding up well over a long-time horizon.

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From an analyst’s perspective:

Super Micro Computer Inc [NASDAQ: SMCI] stock has seen the most recent analyst activity on September 06, 2024, when JP Morgan downgraded its rating to a Neutral and also revised its price target to $500 from $950. Previously, Barclays downgraded its rating to Equal Weight on September 04, 2024, and dropped its price target to $438. On August 07, 2024, downgrade downgraded it’s rating to Neutral and revised its price target to $700 on the stock. Nomura downgraded its rating to a Neutral but stick to its price target of $930 on July 10, 2024. KeyBanc Capital Markets initiated its recommendation with a Sector Weight. JP Morgan started tracking with a Overweight rating for this stock on March 25, 2024, and assigned it a price target of $1150. In a note dated March 06, 2024, Argus initiated an Buy rating and provided a target price of $1350 on this stock.

Super Micro Computer Inc experienced fluctuations in its stock price throughout the past year between $226.59 and $1229.00. Currently, Wall Street analysts expect the stock to reach $748.67 within the next 12 months. Super Micro Computer Inc [NASDAQ: SMCI] shares were valued at $445.40 at the most recent close of the market. An investor can expect a potential return of 68.09% based on the average SMCI price forecast.

Analyzing the SMCI fundamentals

Trailing Twelve Months sales for Super Micro Computer Inc [NASDAQ:SMCI] were 14.94B which represents 142.95% growth. Gross Profit Margin for this corporation currently stands at 0.14% with Operating Profit Margin at 0.08%, Pretax Profit Margin comes in at 0.08%, and Net Profit Margin reading is 0.08%. To continue investigating profitability, this company’s Return on Assets is posted at 0.12, Equity is 0.31 and Total Capital is 0.17. An extended analysis of the company’s primary financial structure reveals a debt-to-equity ratio of0.4.

Before buying any particular stock, readers tend to pay close attention to the indicators that support and create resistance. The company’s stock is currently sitting at 422.41 points at the first support level, and at 399.43 for the second support level. However, for the 1st resistance point, the stock is sitting at 457.19, and for the 2nd resistance point, it is at 468.99.

Ratios To Look Out For

To put it in perspective, the Current Ratio for Super Micro Computer Inc [NASDAQ:SMCI] is 3.77. On the other hand, the Quick Ratio is 1.93, and the Cash Ratio is 0.69. Considering the valuation of this stock, the price to sales ratio is 1.75, the price to book ratio is 5.12 and price to earnings (TTM) ratio is 22.38.

Transactions by insiders

Recent insider trading involved FAIRFAX DANIEL W, Director, that happened on Jun 03 ’24 when 300.0 shares were sold. Director, LIU TALLY C completed a deal on May 30 ’24 to sell 500.0 shares. Meanwhile, Director FAIRFAX DANIEL W sold 300.0 shares on May 01 ’24.

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