Super Micro Computer, Inc. (NASDAQ:SMCI) shares are tumbling on Tuesday, reflecting broader market trends as the stock is caught in a sell-off. The Nasdaq is down slightly, and the S&P 500 has also dipped, indicating a challenging environment for technology stocks today.
The decline comes amid negative analyst coverage from Goldman Sachs, which assumed coverage on Super Micro with a Sell rating and set a price target of $26 on Tuesday.
The analyst update follows a Neutral rating from Mizuho last week, which lowered its price target from $45 to $31.
The market is experiencing a broader downturn with weakness in the technology sector. Overall market sentiment also seems to be adding pressure to shares of Super Micro on Tuesday.
The stock has been under pressure for some time, with shares down 8.75% over the past 12 months. The stock is currently trading around $28.40, which is significantly below its 52-week high of $66.44, indicating a challenging year for investors.
SMCI Trades Below Key Levels
Super Micro Computer is trading 7.1% below its 20-day simple moving average (SMA) and 31.4% below its 100-day SMA, suggesting a bearish trend in the short to medium term. Shares have decreased 8.75% over the past year and are currently positioned closer to their 52-week lows than highs, reflecting ongoing weakness.
The RSI is at 38.32, indicating neutral momentum, while the MACD is above its signal line, suggesting a potential bullish divergence despite the current price action. The combination of neutral RSI and bullish MACD suggests mixed momentum, which could indicate a potential reversal if market conditions improve.
- Key Resistance: $32.00
- Key Support: $27.50
Section: Earnings & Analyst Outlook
Investors are looking ahead to the next earnings report on Feb. 10.
- EPS Estimate: $0.45 (Down from $0.51 YoY)
- Revenue Estimate: $10.38 billion (Up from $5.68 billion YoY)
- Valuation: P/E of 23.7x (Indicates fair valuation)
Valuation Insight: While the stock trades at a fair P/E multiple, the consensus and 12% expected earnings decline suggest analysts view this growth as justification for the 53% upside to analyst targets.
Section: Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Super Micro Computer, Inc. Common Stock (SMCI), highlighting its strengths and weaknesses compared to the broader market:
- Momentum: Weak (Score: 8.3/100) — Stock is underperforming the broader market.
- Quality: Strong (Score: 96.01/100) — Balance sheet remains healthy.
- Value: Risk (Score: 77.5/100) — Trading at a fair valuation relative to peers.
- Growth: Strong (Score: 92.85/100) — Indicates potential for future expansion.
The Verdict: Super Micro’s Benzinga Edge signal reveals a mixed outlook. While the strong Quality and Growth scores indicate potential, the weak Momentum score warns that the stock is currently struggling to gain traction.
Top ETF Exposure
- Schwab Fundamental US Small Company Index ETF (NYSE:FNDA): 0.30% Weight
- iShares Future AI & Tech ETF (NYSE:ARTY): 3.44% Weight
- Defiance Daily Target 2X Long SMCI ETF (NASDAQ:SMCX): 27.39% Weight
Significance: Because SMCI carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
Super Micro Shares Slide
SMCI Price Action: Super Micro Computer shares were down 5.84% at $28.37 at the time of publication on Tuesday, according to Benzinga Pro data.
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