Super Micro Computer, Inc. (NASDAQ:SMCI) Oversold but Is That a Buy Indicator?

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Super Micro Computer, Inc. (NASDAQ:SMCI) is at oversold status with a 14-day RSI of 19.75.

The Relative Strength Index (RSI) is a recognized technical indicator used to ascertain strengthening and weakening momentum in stock price. An RSI above 70 is an overbought indication and stocks are considered oversold at levels under 30. Oversold is a condition that occurs when price momentum is considered too low and the stock may be due to break out.

Volatility

Super Micro Computer, Inc.’s beta is at 0.18 indicating it is lower in volatility than the market as a whole that has a beta of 1. Stocks with a beta lower than the market are considered to be less risky than the market and those with a higher beta are more risky than the market over the long haul.

The stock’s Average True Range (ATR) is 0.81. The ATR is an indicator of volatility. It doesn’t indicate direction, just proclivity for motion.

Shares last traded at $21.13 impressively lower than $26.27, the stock’s 50 day moving average and significantly below the 200 day moving average of $25.21. The 50 day moving average went down $-5.14 or -19.583% whereas the 200 day average was down by -16.197%.

Recent news headlines for Super Micro Computer, Inc..

Supermicro disponibiliza extraordinários 18 milhões de IOPS de desempenho de armazenamento em novo servidor Ultra em 2U
Supermicro Accelerates Software-Defined Storage with VMware vSAN Hyper-Converged Solution
Supermicro acelera armazenamento definido por software com solução VMware vSAN hiperconvergente
Supermicro accelera lo storage definito da software con la soluzione iper-convergente VMware vSAN
Supermicro Launches Petabyte Scale 1U Server and JBOF.

Short Interest

Investors are more bearish on Super Micro Computer, Inc. of late looking at the motion in short interest. The firm experienced a rise in short interest of 13.82% between August 15, 2017 and August 31, 2017. Short interest grew from 5,215,062 to 5,936,002 over that timeframe. Days to cover increased 4.0 to 14.0 and the percentage of shorted shares is 0.12% as of August 31.

Insider Activity

Super Micro Computer, Inc. (NASDAQ:SMCI) has been the object of insider selling activity recently. Director Hwei-ming Fred Tsai let go of 5,000 shares at an average price of $27.10 on Thu the 17th. That brings the Director’s holdings to $6,639,500 as recorded in a recent Form 4 SEC filing.

Recent Analyst Ratings

On September 18 the stock rating was downgraded from “Buy” to “Neutral” by analysts at DA Davidson.

Earnings Per Share

Super Micro Computer, Inc.’s P/E ratio is 15.765 and the market cap is 1.03B. As of the last earnings report the EPS was $1.34 and is projected to be $2.03 for the current year with 48,804,000 shares currently outstanding. Next quarter’s EPS is expected be $0.55 with next year’s EPS projected to be $2.41.

Company Information

Super Micro Computer, Inc., launched on August 28, 2006, is involved in developing and providing end-to-end green computing solutions to the cloud computing, data center, enterprise information technology (IT), big data, high performance computing (HPC) and Internet of Things (IoT)/embedded markets. The Business’s solutions range from server, storage, blade and workstations to full racks, networking devices, server management software and technology support and services. The Company sells its server systems and server subsystems and accessories through a combination of distributors, including value added resellers and system integrators, and other equipment manufacturers (OEMs). As of June 30, 2016, the Company offered over 4,950 stock keeping units (SKUs), including SKUs for server and storage systems, serverboards, chassis, power supplies and other system accessories. The Company develops and manufactures server solutions based upon a modular and open architecture. The Company offers a range of application optimized server solutions, including rackmount and blade server systems and subsystems and accessories, which customers can use to build complete server systems..