Super Micro Computer’s (SMCI) stock is up 5% after the server maker scheduled a highly anticipated “business update” for Feb. 11.
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In a written statement, Super Micro Computer said that it would provide investors with a long-awaited update on its operations and financial situation within a week. Shares responded to the news, rising 5% in early trading on Feb. 4.
Specifically, Super Micro Computer said that it plans to provide a fiscal second-quarter business update. The company has until Feb. 25 to file its annual accounts for the last fiscal year that ended on June 30, 2024 or risk being delisted from the Nasdaq exchange on which it trades.
Ongoing Issues
The looming threat of being delisted gives added weight and importance to Super Micro Computer’s upcoming business update. Analysts have been calling on the company to provide some much-needed clarity on whether it can meet the deadline at month’s end.
SMCI stock has traded erratically since last summer when the company was accused in a short seller report of accounting malfeasance. While Super Micro Computer denied the accusations, it has since delayed the filing of its annual accounts with the U.S. Securities and Exchange Commission (SEC) and its auditor quit working for the company last fall.
SMCI stock has declined 57% in the past 12 months.
Is SMCI Stock a Buy?
The stock of Super Micro Computer has a consensus Hold rating among six Wall Street analysts. That rating is based on one Buy, three Hold, and two Sell recommendations issued in the past three months. The average SMCI price target of $26.80 implies 6% downside risk from current levels.
