AI-powered server provider Super Micro Computer (SMCI) jumped over 9% in today’s pre-market trading. The upside is mainly attributed to news that the Nasdaq Stock Exchange extended the company’s deadline to file its annual and quarterly reports to February 25, 2024. This extension provides the company with critical time to address accounting issues and restore compliance with Nasdaq’s listing requirements.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Relief for SMCI amid Delisting Risks
Importantly, the extension comes as a relief for the company, which has seen its stock price drop over 44% in the past six months due to concerns about its financial reporting and auditing processes.
It is worth highlighting that the company had been at risk of delisting after missing the August deadline for filing its annual report and the resignation of its auditor, Ernst & Young. Further, Super Micro Computer faced pressure following a report from short-seller Hindenburg Research, which accused the company of corporate misconduct. Following this, the U.S. Department of Justice initiated an investigation into the matter.
To address these issues, SMCI’s independent special committee conducted a review of its business and found no evidence of fraud or misconduct. The company also appointed a new independent auditor, BDO USA, and has begun searching for a new chief financial officer and chief compliance officer.
Is SMCI Stock a Good Buy?
Analysts remain sidelined about SMCI stock, with a Hold consensus rating based on two Buys, five Holds, and two Sells. At $38.57, the average Super Micro Computer price target implies a 12.2% downside potential.
