Super Micro Computer Inc [NASDAQ: SMCI] price plunged by -11.84 percent to reach at -$115.51. The company report on February 23, 2024 at 12:18 AM that Supermicro Announces Pricing of Private Offering of $1.5 Billion of Convertible Senior Notes Due 2029.
Super Micro Computer, Inc. (NASDAQ: SMCI) (“Supermicro” or the “Company”), a Total IT Solution Manufacturer for AI, Cloud, Storage, and 5G/Edge, today announced the pricing of $1.5 billion aggregate principal amount of convertible senior notes due 2029 (the “Convertible Notes”). The Convertible Notes are being offered and sold to “qualified institutional buyers” pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The Company also granted a 13-day option to the initial purchasers to purchase up to an additional $225.0 million aggregate principal amount of the Convertible Notes.
The Convertible Notes will be senior, unsecured obligations of the Company. The Convertible Notes will not bear regular interest, and the principal amount of the Convertible Notes will not accrete. The Convertible Notes have an initial conversion rate of 0.7455 shares of the Company’s common stock per $1,000 principal amount of Convertible Notes (which is equivalent to an initial conversion price of approximately $1,341.38 per share of the Company’s common stock, representing an initial conversion premium of approximately 37.5% above the closing price of $975.52 per share of the Company’s common stock on February 22, 2024). The conversion rate and conversion price will be subject to adjustment upon the occurrence of certain events.
The one-year SMCI stock forecast points to a potential downside of -18.98. The average equity rating for SMCI stock is currently 1.86, trading closer to a bullish pattern in the stock market.
Guru’s Opinion on Super Micro Computer Inc [SMCI]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for SMCI shares is $722.81 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on SMCI stock is a recommendation set at 1.86. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.
BofA Securities have made an estimate for Super Micro Computer Inc shares, keeping their opinion on the stock as Buy, with their previous recommendation back on February 15, 2024. While these analysts kept the previous recommendation, Susquehanna dropped their target price from $240 to $160. The new note on the price target was released on December 11, 2023, representing the official price target for Super Micro Computer Inc stock. Previously, the target price had yet another raise to $413, while Nomura analysts kept a Buy rating on SMCI stock.
The Average True Range (ATR) for Super Micro Computer Inc is set at 92.68, with the Price to Sales ratio for SMCI stock in the period of the last 12 months amounting to 5.20. The Price to Book ratio for the last quarter was 15.63, with the Price to Cash per share for the same quarter was set at 12.97.
SMCI Stock Performance Analysis:
Super Micro Computer Inc [SMCI] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -14.34. With this latest performance, SMCI shares gained by 82.91% in over the last four-week period, additionally plugging by 209.79% over the last 6 months – not to mention a rise of 891.82% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for SMCI stock in for the last two-week period is set at 61.66, with the RSI for the last a single of trading hit 58.54, and the three-weeks RSI is set at 63.61 for Super Micro Computer Inc [SMCI]. The present Moving Average for the last 50 days of trading for this stock 482.79, while it was recorded at 832.12 for the last single week of trading, and 314.80 for the last 200 days.
Insight into Super Micro Computer Inc Fundamentals:
Super Micro Computer Inc’s liquidity data is similarly interesting compelling, with a Quick Ratio of 1.19 and a Current Ratio set at 2.43.
SMCI Stock EPS
With the latest financial reports released by the company, Super Micro Computer Inc posted 1.63/share EPS, while the average EPS was predicted by analysts to be reported at 1.71/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -4.70%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for SMCI. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Super Micro Computer Inc go to 48.20%.
Super Micro Computer Inc [SMCI] Institutonal Ownership Details
The top three institutional holders of SMCI stocks are: VANGUARD GROUP INC with ownership of 1.3 billion shares, which is approximately 8.2815%. BLACKROCK INC., holding 1.03 billion shares of the stock with an approximate value of $176.59 billion in SMCI stocks shares; and BERKSHIRE HATHAWAY INC, currently with $156.75 billion in SMCI stock with ownership which is approximately 5.8325%.
