Short seller Hindenburg Research on Tuesday accused data center specialist Super Micro Computer of accounting manipulation, export control failures, customer issues and other problems. The report sent SMCI stock tumbling.
Hindenburg Research, a forensic financial research firm, said its report on Super Micro was based on a three-month investigation. The investigation included interviews with former senior employees and industry experts as well as a review of litigation records, international corporate and customs records.
Hindenburg said it found "glaring accounting red flags, evidence of undisclosed related party transactions, sanctions and export control failures, and customer issues."
Based on its investigation, Hindenburg said it has taken a short position against Super Micro, betting that SMCI stock will fall.
SMCI Stock Retreats After Report
Super Micro had not responded to a request for comment as of this article's publication time.
On the stock market today, SMCI stock dropped 2.6% to close at 547.64. Earlier in the session, it was down as much as 8.7% to 513.66.
SMCI stock hit an all-time high of 1,229 on March 8.
Hindenburg called Super Micro a "serial recidivist" for its accounting irregularities.
In August 2020, the U.S. Securities and Exchange Commission charged Super Micro with "widespread accounting violations," for which it later paid a $17.5 million settlement.
In 2018, Super Micro was temporarily delisted from Nasdaq for failing to file financial statements.
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