SAN JOSE, CA - Super Micro Computer, Inc. (NASDAQ:SMCI), a global leader in high-performance, high-efficiency server technology and innovation, announced today a ten-for-one forward stock split. The split is scheduled to take effect after market close on September 30, 2024, with the company's common stock beginning to trade on a split-adjusted basis on the Nasdaq Global Select Market at the market open on October 1, 2024.
The new CUSIP number for Super Micro's common stock will be 86800U302 following the stock split. This corporate action will increase the number of shares outstanding, making the stock more accessible to a broader base of investors.
Stockholders of record who hold their shares in certificated form will be required to exchange their shares. They will receive instructions from Computershare Trust Company, N.A., the company's transfer agent, on how to surrender their stock certificates in exchange for book-entry shares representing the post-split amount. However, shareholders who hold their shares in electronic, book-entry form do not need to take any action to receive the new amount of shares.
For those owning shares through a brokerage, bank, or other nominee, their accounts will be automatically adjusted to reflect the stock split. Beneficial owners should contact their brokers or custodians if they have any questions about the process.
Super Micro's decision to split its stock reflects a continued commitment to maximizing shareholder value and improving the liquidity of its shares. The company's leadership believes that the stock split will make Super Micro's shares more accessible to investors and improve the marketability of the stock.
In other recent news, Super Micro Computer is under investigation by the U.S. Department of Justice for alleged accounting manipulation, a claim initially brought forward by Hindenburg Research. Concurrently, the company has expanded its X14 server portfolio, integrating new Intel (NASDAQ:INTC) Xeon 6900 Series Processors to optimize high-performance computing, artificial intelligence, and cloud services.
Super Micro also announced the release of its FlexTwin family of systems, designed to meet the demands of complex computing environments. Needham, a prominent investment firm, initiated coverage on Super Micro with a buy rating, highlighting the company's potential for growth in AI infrastructure.
Despite facing allegations of accounting irregularities, Super Micro reported record annual revenues of $14.94 billion and fourth-quarter revenues of $5.31 billion. The company continues to innovate, previewing its new X14 server platforms built on the upcoming Intel Xeon 6900 series processors. These are some of the recent developments at Super Micro Computer.
InvestingPro Insights
Following Super Micro Computer's announcement of a ten-for-one forward stock split, a look at the company through the lens of InvestingPro provides additional context to its current financial landscape. According to recent data, Super Micro Computer boasts a robust market capitalization of $23.56 billion, underlining its significant presence in the tech sector. The company's P/E ratio stands at an attractive 18.61, suggesting a potentially undervalued stock in relation to its near-term earnings growth—a point further emphasized by an InvestingPro Tip highlighting the stock trading at a low P/E ratio compared to its earnings growth potential.
InvestingPro data also shows an impressive revenue growth of over 109% for the last twelve months as of Q4 2024, which aligns with an InvestingPro Tip that analysts anticipate sales growth in the current year. Furthermore, Super Micro Computer has achieved a high return on assets of 17.74% during the same period, indicating efficient management of its asset base to generate profits.
For investors seeking more in-depth analysis, there are additional InvestingPro Tips available, including observations on Super Micro's position within the Technology Hardware, Storage & Peripherals industry and its financial health in relation to debt and liquidity. These insights can be explored further by visiting the InvestingPro platform.
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