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SMCI -- USA Stock  

USD 26.25  0.14  0.53%

SUPER MICRO COMPUTER is scheduled to announce its earnings today. As many baby boomers are still indifferent towards technology space, it makes sense to break down SUPER as a potential position. We will examine the reasons why it is still possible for the company to generate above-average margins given the current economic outlook.
Published over a month ago
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What is September outlook for SUPER MICRO (NASDAQ:SMCI)?
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. SUPER MICRO has an asset utilization ratio of 283.12 percent. This implies that the company is making $2.83 for each dollar of assets. An increasing asset utilization means that SUPER MICRO COMPUTER is more efficient with each dollar of assets it utilizes for everyday operations.
What is the right price you would pay to acquire a share of SUPER MICRO? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our stock advisor page.

What is happening with SUPER MICRO COMPUTER this year

Annual and quarterly reports issued by SUPER MICRO COMPUTER are formal financial statements that are published yearly and quarterly and sent to SUPER stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the Securities and Exchange Commission (SEC) for businesses owned by the public since 1934. Companies such as SUPER MICRO often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.

How SUPER utilizes its cash?

To perform a cash flow analysis of SUPER MICRO, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash SUPER MICRO is receiving and how much cash it distributes out in a given period. The SUPER MICRO cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. SUPER MICRO Net Cash Flow from Operations is most likely to increase significantly in the upcoming years. The last year's value of Net Cash Flow from Operations was reported at 96.76 Million

Acquisition by Weigand David E of 3600 shares of SUPER MICRO subject to Rule 16b-3

Legal trades by SUPER MICRO insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
SUPER insider trading alert for grant of restricted stock units by Weigand David E, SVP CHIEF COMPLIANCE OFFICER, on 15th of September 2020. This event was filed by Super Micro Computer Inc with SEC on 2020-09-15. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Is SUPER a risky opportunity?

Let's check the volatility. SUPER is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind SUPER (NASDAQ:SMCI) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. locking in a share of a SUPER MICRO stock makes you a part-owner of that company.


Here is the current trade recommendation based on an ongoing consensus estimate among financial analysis covering SUPER MICRO COMPUTER. The SUPER consensus assessment is calculated by taking the average estimates from all of the analysts covering SUPER MICRO

Strong Buy
Strong Buy3100.0
Strong Sell00.0

Will SUPER pull back in September 2020?

Current market risk adjusted performance is at 2.15. As of the 11th of August 2020, SUPER MICRO has the coefficient of variation of (2,113), and Risk Adjusted Performance of (0.07). Compared to fundamental indicators, the technical analysis model makes it possible for you to check available technical drivers of SUPER MICRO COMPUTER, as well as the relationship between them. In other words, you can use this information to find out if the company will indeed mirror its model of past prices and volume data, or the prices will eventually revert. We were able to interpolate data for nineteen technical drivers for SUPER MICRO COMPUTER, which can be compared to its competition. Please validate SUPER MICRO COMPUTER variance, maximum drawdown, as well as the relationship between the Maximum Drawdown and semi variance to decide if SUPER MICRO is priced fairly, providing market reflects its prevalent price of 30.21 per share. Given that SUPER MICRO COMPUTER has jensen alpha of (0.08), we advise you to double-check SUPER MICRO COMPUTER's current market performance to make sure the company can sustain itself next year.

Our Final Takeaway

While other companies under the computer hardware industry are still a bit expensive, SUPER MICRO may offer a potential longer-term growth to stockholders. To summarize, as of the 11th of August 2020, we believe SUPER MICRO is currently undervalued. It moves indifferently to market moves and projects very small chance of bankruptcy in the next two years. Our up-to-date 30 days buy-hold-sell recommendation on the company is Strong Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of SUPER MICRO COMPUTER. Please refer to our Terms of Use for any information regarding our disclosure principles.

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