Hindenburg Research founder Nate Anderson has announced that the influential short-selling firm known for uncovering corporate fraud and corruption will shut down. In his farewell statement, Anderson reflected on the firm’s major successes, which include high-profile investigations into Nikola (NKLA), Adani Group, and Lordstown Motors (RIDE) that exposed deceptive practices and led to significant regulatory actions and billions wiped from market caps.
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Anderson shared that the decision to close Hindenburg was driven by a desire to pursue personal growth after years of intense focus on the firm’s mission. He recounted the struggles of launching the firm, including legal battles, financial strain, and personal sacrifices. Despite the challenges, Hindenburg’s work resulted in nearly 100 individuals, including billionaires and corporate leaders, facing civil or criminal charges. Anderson also revealed plans to open-source Hindenburg’s investigative methods over the next six months to empower others to continue shedding light on fraud.
Hindenburg’s Impact on SMCI
Hindenburg Research’s short report on Super Micro Computer (SMCI) in August highlights the type of influence the firm has in the market. By alleging that the company engaged in questionable accounting practices while failing to disclose key financial risks, Hindenburg sent the high-flying Wall Street darling into a tailspin.
As a result, Wall Street analysts now have a Hold rating on the stock, based on one Buy, five Holds, and two Sells assigned in the past three months. After a 65% decline in its share price over the past six months, the average SMCI price target of $27.75 per share implies 10.5% downside risk.
