Super Micro Computer Inc (SMCI) shares have surged 25% since Monday’s open, trading at $41.47. The company announced findings from an internal investigation led by its Special Committee, concluding that there was “no evidence of misconduct or fraud” involving its management or board.
The review, supported by legal and forensic experts, assessed various aspects of the company, including rehiring practices, sales and revenue recognition, export controls, and related-party disclosures. While the findings were largely reassuring, they also highlighted lapses in governance practices, prompting calls for structural reforms.
In response, the board accepted key recommendations, including appointing a new CFO to replace David Weigand and bolstering oversight with new hires such as a chief compliance officer, a general counsel, and a chief accounting officer. The company has also committed to expanding training programs and tightening financial controls to address identified weaknesses.
Despite these measures, JPMorgan analyst Samik Chatterjee remains cautious, maintaining an “Underweight” rating on the stock. He highlighted two critical risks: the response of Super Micro’s independent auditor, BDO, and whether Nasdaq will extend the timeline for the company to regain compliance with listing standards.
For investors looking to participate in the market, buying shares is typically done through a brokerage account. Fractional shares allow individuals to own portions of stock without buying an entire share. In the case of Super Micro Computer, $100 would buy 2.39 shares of stock at current prices.
Those looking to bet against the company require access to an options trading platform or a broker that allows “shorting” shares. The process involves lending shares to sell and profiting from the decline in price. SMCI has a 52-week high of $122.90 and a low of $17.25, according to data from Benzinga Pro.
Source: https://www.benzinga.com/news/24/12/42324060/whats-going-on-with-super-micro-computer-smci-stock-2