Despite being one of the leading forces in the software industry, Super Micro Computer has been one of the “trouble-makers kids” on Nasdaq, going back to 2018, when it was temporarily delisted after the company failed to abide by the Nasdaq listing rule.
The latest trading day saw Super Micro Computer (SMCI) settling at $32.60, representing a -0.03% change from its previous close.
If the stock is delisted and moved to the OTC market, its stock price and earnings multiple could be hit further. This is what happened the last time the company was delisted in 2018 and this could very well happen again. There are also concerns about how these issues could impact Super Micro's core business.
Super Micro CEO confident stock will not be delisted. NEW YORK, Dec 10 (Reuters) - Super Micro Computer (SMCI. O) , opens new tab Chief Executive Charles Liang on Tuesday said he is confident the technology company's stock will not be delisted from the Nasdaq.
The highest analyst price target is $37.50 ,the lowest forecast is $15.00. The average price target represents -14.88% Decrease from the current price of $32.6. Super Micro Computer's analyst rating consensus is a Hold. This is based on the ratings of 8 Wall Streets Analysts.
What Happens to My Shares After Delisting? When a company delists voluntarily, shareholders will usually receive cash to buy them out or shares in the new, acquiring company. 6 When it is forced to go, the outcome is usually different. No special offer comes.
As Supermicro's chances of getting delisted from Nasdaq ebb, and its management veracity are restored, it makes all the more sense to buy the SMCI stock now for growth in 2025. Lest we forget, Supermicro's strong position in the AI server market should also help its shares climb northward.
When a coin gets delisted from an exchange, you have three options: transfer the coins to another exchange, hold the coins, or sell the coins.
Some experts are cautious, advising against investing due to recent accounting irregularities and the resignation of auditors and key executives. Others are more optimistic, highlighting the company's strong technology, potential growth, and positive indicators such as raised guidance and improved earnings.
The company's troubles have snowballed, from missed earnings expectations to a delayed annual report filing, auditor resignations, and a Department of Justice probe triggered by short-seller allegations. Warning! GuruFocus has detected 5 Warning Signs with SMCI.
After a scathing short report highlighted questionable accounting practices, the company's auditor resigned, and it has not been able to file its annual report at its expected due date. The once-loved artificial intelligence (AI) stock is showing red flag after red flag with its business practices.
The ownership structure of Super Micro Computer (SMCI) stock is a mix of institutional, retail, and individual investors. Approximately 1.52% of the company's stock is owned by Institutional Investors, 28.20% is owned by Insiders, and 20.51% is owned by Public Companies and Individual Investors.
Out of 12 analysts, 2 (16.67%) are recommending SMCI as a Strong Buy, 1 (8.33%) are recommending SMCI as a Buy, 7 (58.33%) are recommending SMCI as a Hold, 0 (0%) are recommending SMCI as a Sell, and 2 (16.67%) are recommending SMCI as a Strong Sell.
Net income for fiscal year 2024 was $1.21 billion, or $20.09 per diluted share, versus $640 million, or $11.43 per diluted share, for fiscal year 2023. Non-GAAP net income for fiscal year 2024 was $1.34 billion, or $22.09 per diluted share, versus $673 million, or $11.81 per diluted share, for fiscal year 2023.
(NASDAQ:SMCI) ("SMCI" or the "Company"), a Total IT Solution Provider for AI, Cloud, Storage and 5G/Edge, today announced that on December 6, 2024, it received a letter from the Nasdaq Stock Market ("Nasdaq") informing the Company that Nasdaq has granted the Company's request for an exception to Nasdaq's Listing Rule ...
Once your asset is delisted by the exchange or any central governing body, it can no longer be purchased or sold on any exchange. In most cases, delisting is permanent; however, the asset might be relisted in special conditions.
A delisted stock can theoretically be relisted on a major exchange, but it's rare. The delisted company would have to avoid bankruptcy, solve the issue that forced the delisting, and again become compliant with the exchange's standards.
Of all the analysts covering Super Micro Computer, the stock is a consensus buy, with a 2.38 'Outperform' rating on a scale from 1 ('Strong Buy') to 5 ('Strong Sell'). 24/7 Wall Street's 12-month forecast projects Super Micro Computer's stock price to be $68.34 based on a projected EPS of $3.35 in 2025.
If the company were delisted, its shares would still trade, but it would now be on the over-the-counter (OTC) market. That could lead to its removal for the S&P 500 index, which is just joined earlier this year.
What Plagued SMCI Stock? In recent times, Supermicro faced a slew of discouraging news that dragged its share price down. In August, Hindenburg Research alleged that Supermicro was involved in accounting irregularities, and the bearish report had a devastating impact on the SMCI stock.
If a company is delisted, you are still a shareholder, to the extent of a number of shares held. And yet, you cannot sell those shares on any exchange. However, you can sell it on the over-the-counter market. This means you can look for a buyer outside the stock exchange.
The Impact of Delisting on Investors
However, a delisted stock often experiences significant or total devaluation. Therefore, even though a stockholder may still technically own the stock, they will likely experience a significant reduction in ownership. In some cases, stockholders can lose everything.
If you own securities, including stocks, and they become totally worthless, you have a capital loss but not a deduction for bad debt. Worthless securities also include securities that you abandon.