What's Going On With Super Micro (SMCI) Stock Today?
Portfolio Pulse from Adam Eckert
Super Micro Computer Inc (NASDAQ:SMCI) announced the pricing of its public offering of 2 million shares at $875 each, aiming for total gross proceeds of $1.75 billion. The funds are intended for operational support, including inventory purchases, manufacturing capacity expansion, and increased R&D investments. The offering is expected to close around March 22. Despite a recent drop, SMCI stock has seen significant growth, up over 220% since the start of the year and over 700% in the past year. Wall Street analysts generally rate SMCI as a Buy.
March 20, 2024 | 12:52 pm
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Super Micro Computer Inc announced a public offering of 2 million shares at $875 each, with the intention to raise $1.75 billion for operational support and growth. The stock has experienced significant growth but saw a recent drop.
The announcement of a public offering often leads to a short-term decrease in stock price due to the dilution of shares. Given SMCI's recent price drop following the announcement, it's likely the stock will continue to face short-term pressure. However, the company's strong performance over the year and positive analyst ratings may mitigate some of the negative impact.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100