Sara ChiuChu Liang Liu At Super Micro Computer Exercises Options Worth $0

Sara ChiuChu Liang Liu, Board Member at Super Micro Computer SMCI, reported a large exercise of company stock options on April 24, according to a new SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Thursday showed that Liu, Board Member at Super Micro Computer, a company in the Information Technology sector, just exercised stock options worth 0 shares of SMCI stock with an exercise price of $0.0.

Currently, Super Micro Computer shares are trading down 0.47%, priced at $35.64 during Friday’s morning. This values Liu’s 0 shares at $0.

Get to Know Super Micro Computer Better

Super Micro Computer Inc provides high-performance server technology services to cloud computing, data centers, Big Data, high-performance computing, and the “Internet of Things” embedded markets. Its solutions include server, storage, blade, and workstations to full racks, networking devices, and server management software. The firm follows a modular architectural approach, which provides flexibility to deliver customized solutions. The Company operates in one operating segment that develops and provides high-performance server solutions based upon an innovative, modular, and open-standard architecture. More than half of the firm’s revenue is generated in the United States, with the rest coming from Europe, Asia, and other regions.

Breaking Down Super Micro Computer’s Financial Performance

Positive Revenue Trend: Examining Super Micro Computer’s financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 54.93% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Key Insights into Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 11.8%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Super Micro Computer’s EPS is below the industry average. The company faced challenges with a current EPS of 0.54. This suggests a potential decline in earnings.

Debt Management: With a below-average debt-to-equity ratio of 0.31, Super Micro Computer adopts a prudent financial strategy, indicating a balanced approach to debt management.

In-Depth Valuation Examination:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 15.57, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The P/S ratio of 1.09 is lower than the industry average, implying a discounted valuation for Super Micro Computer’s stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Super Micro Computer’s EV/EBITDA ratio, lower than industry averages at 13.26, indicates attractively priced shares.

Market Capitalization Perspectives: The company’s market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.

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Why Pay Attention to Insider Transactions

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

Considering the legal perspective, an “insider” is defined as any officer, director, or beneficial owner holding more than ten percent of a company’s equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Pointing towards optimism, a company insider’s new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Navigating the World of Insider Transaction Codes

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Super Micro Computer’s Insider Trades.

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This article was generated by Benzinga’s automated content engine and reviewed by an editor.