Once a star of the 2024 stock market, Super Micro Computer (NASDAQ: SMCI) has fallen on hard times following a 10-K filing delay and a string of accusations of foul play coming from Hindenburg Research.
The rapid shift in fortunes can best be seen in the discrepancy between Supermicro stock’s year-to-date (YTD) and 6-month price charts. The total growth since January 1 has been large enough that SMCI shares are up 53.05% in 2024, despite collapsing 58.38% in the last 6 months.
It might be precisely for that reason that Wall Street analysts have not turned entirely against Super Micro Computer in the wake of recent accusations, as exemplified by the fact the stock, at press time on September 20, boasts an overall ‘neutral’ rating on TipRanks and a price target of $615.18 – 40.71% above SMCI’s price today of $433.97.
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Still, the general overview may be somewhat deceptive as aggregate analyst scores tend to take into account all ratings assigned within the previous three months, and Supermicro’s woes only started in earnest in recent weeks.
What experts are saying about SMCI stock in September
Though the recent revisions show a souring of expert sentiment, they simultaneously demonstrate a level of confidence that SMCI can resolve its issues.
On September 4, Barclay’s removed its ‘buy’ rating for Supermicro shares, though replaced it with an only slightly worse ‘neutral’ recommendation. The 12-month price reduction has, however, been more dramatic as it was lowered from $693 to $438.
Two days later, JPMorgan (NYSE: JPM) took a similar approach, setting its rating for Super Micro Computer stock at ‘neutral’ and lowering the forecast from $950 to $500.
On September 17, Mizuho initiated its coverage of SMCI with a ‘neutral’ rating and a $450 price target, but on September 18, Needham assessed Supermicro stock as a ‘buy’ with an associated $600 forecast.
The relatively tame revisions were also explained well in JPMorgan’s note associated with the downgrade.
The banking giant explained that the decision was driven by the turbulence SMCI is experiencing in September and not a broader lack of faith in the company’s business model or its ability to become compliant again.
SMCI pressured by lawsuits, a call for whistleblowers
However, the relative show of confidence may soon turn. Supermicro is, at press time, facing three major lawsuits over losses incurred by its business and reporting practices.
Additionally, as exemplified by an announcement sent by Hagens Berman on September 19, a firm focusing on litigation with the aim of ensuring corporate accountability, not only are investors still able to join the lawsuits, but there is an active search for whistleblowers who would wish to aid in the investigation of the technology giant.
SMCI stock price chart
Meanwhile, Supermicro stock has seemingly stabilized after suffering extensive losses at the beginning of September. The 30-day chart shows SMCI shares have dropped 30.43% within the time frame, while the 7-day chart demonstrates a slowdown to the downturn as the stock is 2.79% in the red.
On Thursday, September 19, SMCI even featured an extremely modest gain of 0.07% as Supermicro shares ended the session at $437.20.
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