Super Micro Computer, Inc. (NASDAQ:SMCI) director Liu Liang Chiu-Chu Sara has sold a portion of her holdings in the company, according to a recent SEC filing. The transactions, which occurred on April 29, 2024, involved the sale of company stock at prices ranging from $831.016 to $894.1713 per share, resulting in a total value of over $450,000.
The sales were executed under a pre-arranged 10b5-1 trading plan, which allows company insiders to sell shares at predetermined times to avoid accusations of insider trading. The plan was adopted by Liu on February 23, 2023, during an open trading window for the company.
In total, the director sold stock in numerous transactions at various prices, with the lowest sales price reported at $831.016 and the highest at $894.1713. This series of sales indicates a weighted average price within this range for each set of transactions, as detailed in the footnotes of the SEC filing. The filing also notes that Liu is willing to provide full information regarding the number of shares sold at each separate price upon request.
In addition to the sales, Liu also exercised options to acquire 525 shares of common stock at a price of $42.35 per share. This transaction is separate from the sales and is part of the director's compensation package, allowing her to buy stock at a set price after certain conditions, such as continued service to the company, are met.
The transactions are part of the normal course of business for directors and executives who often receive compensation in the form of stock options and may sell shares for personal financial management. Investors typically monitor these insider transactions for insights into executive confidence in the company's prospects.
Super Micro Computer, Inc. specializes in high-performance, high-efficiency server technology and innovation and is a leader in the electronic computers sector. The company is headquartered in San Jose, California, and has been serving its customers with a commitment to innovation and performance.
InvestingPro Insights
As Super Micro Computer, Inc. (NASDAQ:SMCI) makes headlines with insider stock transactions, a closer look at the company's financial health and market performance is warranted. According to real-time data from InvestingPro, Super Micro Computer has a significant market capitalization of $43.23 billion, illustrating its considerable presence in the technology sector. The company's stock is currently trading at a high earnings multiple with a P/E ratio of 39.56, indicating investor confidence in its future earnings potential.
Investors may find it notable that Super Micro Computer has experienced a robust sales growth of 39.22% over the last twelve months as of Q2 2024. This growth is reflective of the company's position as a prominent player in the Technology Hardware, Storage & Peripherals industry, aligning with analysts' anticipation of sales growth in the current year. Additionally, the company's revenue for the same period stands at $9.25 billion, further underscoring its strong market performance.
Two key "InvestingPro Tips" for Super Micro Computer include a significant return over the last week and a high return over the last year, with price total returns of 13.79% and 717.05%, respectively. These figures suggest a bullish trend for the stock in the short and medium-term, which may be of interest to potential investors. It's also worth mentioning that InvestingPro offers 21 additional tips for SMCI, providing a more comprehensive analysis for those considering an investment in the company. To gain access to these insights, investors can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.
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