Super Micro Computer Inc (SMCI): $740.29
Market Cap:$41.41B
Enterprise Value: $41.08B
Almost exactly a year ago, we came across a $250,000 purchase of the server and storage solutions company Super Micro Computer Inc. (SMCI) by Director Shiu Leung (Fred) Chan. At the time, the stock was trading at around $80 per share, and we noted the incredible revenue growth the company was seeing despite it being a difficult time for tech companies as a whole. The stock was fairly cheap with a P/E of 7 despite the stock rising 112% over a twelve month period.
A year later, the stock has risen by over 700%, now trades at $740.29 a share, and has a P/E of 56.54. Director Chan remains the only insider to purchase shares of the company, having made additional purchases in May and August 2023. Each time, we took another brief look at the company (which had only continued to run up), but figured it was part of a bubble that would come to an end. However, after seeing the incredible growth over the last year, when Director Chan purchased shares once again this week, we figured it was at last time to take a closer into the company to understand what was causing the stock price to go vertical.