Super Micro Computer Inc (NASDAQ:SMCI) shares are trading higher by 25% to $41.47 since Monday’s open. The company this week released findings from an internal investigation led by its Special Committee concluding there was “no evidence of misconduct or fraud” involving its management or board.
What To Know: The review, supported by legal and forensic experts, assessed rehiring practices, sales and revenue recognition, export controls and related-party disclosures. While the findings were largely reassuring, they also exposed lapses in governance practices, prompting calls for structural reforms.
Key recommendations accepted by the board include 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 also committed to expanding training programs and tightening financial controls to address identified weaknesses.
Despite these proactive measures, JPMorgan analyst Samik Chatterjee remains cautious, maintaining an “Underweight” rating on the stock. Chatterjee 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.
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How To Buy SMCI Stock
By now you're likely curious about how to participate in the market for Super Micro Computer – be it to purchase shares, or even attempt to bet against the company.
Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy ‘fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so.
In the the case of Super Micro Computer, which is trading at $41.82 as of publishing time, $100 would buy you 2.39 shares of stock.
If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to ‘go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading – either way it allows you to profit off of the share price decline.
According to data from Benzinga Pro, SMCI has a 52-week high of $122.90 and a 52-week low of $17.25.
