Shares of Super Micro Computer Inc. SMCI are showing signs of recovery after a significant drop earlier this week. The stock saw a 2.14% increase in pre-market trading on Wednesday, following a steep 10.4% decline on Tuesday.
What Happened: SMCI announced the termination of two major loan agreements, which led to the initial drop in stock value. The company disclosed in an SEC filing that it had prepaid and ended its loan agreements with Cathay Bank and Bank of America N.A. on Nov. 20. This move is part of the company’s strategy to tackle ongoing challenges related to Nasdaq listing requirements and delayed financial reporting.
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The company’s market capitalization is currently $17.39 billion. According to Benzinga Pro, the consensus price target from 17 analysts is $531.47, with a high of $1300 from Rosenblatt on Aug. 7 and a low of $23 from JP Morgan on Nov. 6.
The company, known for its AI systems that power Nvidia Corp’s NVDA chips, has been on a rollercoaster ride. Despite these recent challenges, SMCI has experienced a notable rally, with shares surging 65% in a week. The stock price rose from $20.03 on Nov. 18 to $33.15 on Nov. 22, as it attempted to recover from a six-month decline that had erased nearly 60% of its value.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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