Super Micro Computer Insider Buys $1.1 Mil Worth of Stock

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Corporate insiders have access to real-time information on the performance of their companies. This means their stock purchases and sales can provide valuable investment insights.

In this report, we are going to highlight some interesting insider buying at Super Micro Computer Inc (SMCI:US). Super Micro Computer is a leading provider of high-performance server and storage solutions. Its products are designed to offer customers high levels of performance and power efficiency, reducing the total cost of ownership. The company is listed on the Nasdaq and currently has a market cap of approximately $12.3 billion.

$1.1 Mil Insider Purchase

2iQ’s data shows that on August 11, director Fred Chan purchased 4,000 SMCI shares at a price of $265.57 per share. This trade cost the insider around $1.1 million and increased his holding to 40,917 shares.

Semiconductor Industry Experience

This trade is notable due to the fact that Mr. Chan has more than three decades of experience in the high technology sector and as an entrepreneur. Previously, he was Chairman, President, and CEO of ESS Technology, Inc., a semiconductor company he founded. He was also previously a founder and executive officer of a VLSI chip design center providing computer aided design, engineering, and other design services, and a co-founder and an executive officer of a company in the business of computer-aided engineering systems development. Given his background, he is likely to have a good understanding of Super Micro Computer’s prospects.

Share Price Weakness

Super Micro Computer’s share price recently fell after the company posted its Q4 results.

However, the results weren’t terrible. For the quarter, the company generated net sales of $2.18 billion versus $1.64 billion in the same quarter a year earlier. Meanwhile, non-GAAP diluted net income per common share came in at $3.51 versus $2.62 a year earlier.

Looking ahead, the company said that it expects sales of between $9.5 billion and $10.5 billion for fiscal year 2024. That would represent growth of between 34% and 48% on fiscal 2023’s sales.

We continue to see unprecedented demand for AI and other advanced applications requiring optimized rack-scale solutions. We are in a great position to continue our growth momentum given our record new design wins, customers, and backlog for our best-in-class rack-scale Total AI & IT Solutions,” commented President and CEO Charles Liang.

In light of the strong growth being generated here, we see the insider buying as a bullish development.