SVP At Super Micro Computer Exercises Options Worth $3.39M

George Kao, SVP at Super Micro Computer (NASDAQ:SMCI), reported a large exercise of company stock options on November 17, according to a new SEC filing.

What Happened: Kao, SVP at Super Micro Computer, exercised stock options for 107,700 shares of SMCI stock. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Monday. The exercise price of the options was $2.56 per share.

During Tuesday's morning session, Super Micro Computer shares down by 0.09%, currently priced at $34.07. Considering the current price, Kao's 107,700 shares have a total value of $3,393,236.

Discovering Super Micro Computer: A Closer Look

Super Micro Computer Inc provides high-performance server technology services to cloud computing, data centers, high-performance computing, and the Internet of Things embedded markets. Its solutions include servers, storage systems, modular blade servers, workstations, full-rack scale solutions, networking devices, server sub-systems, and server management. These turn-key solutions are designed, developed, validated, and installed for AI datacenters. The company has one operating segment that develops and provides high-performance server solutions based upon a, modular and open-standard architecture. More than half of the firm's revenue is generated in the United States, with the rest coming from Europe, Asia, and other regions.

Breaking Down Super Micro Computer's Financial Performance

Revenue Challenges: Super Micro Computer's revenue growth over 3 months faced difficulties. As of 30 September, 2025, the company experienced a decline of approximately -15.49%. This indicates a decrease in top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Exploring Profitability:

• Gross Margin: With a low gross margin of 9.31%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Super Micro Computer's EPS is below the industry average. The company faced challenges with a current EPS of 0.28. This suggests a potential decline in earnings.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.74.

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 26.85 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: The P/S ratio of 1.03 is lower than the industry average, implying a discounted valuation for Super Micro Computer's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 19.87, Super Micro Computer presents an attractive value opportunity.

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

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Why Pay Attention to Insider Transactions

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Breaking Down the Significance of Transaction Codes

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Super Micro Computer's Insider Trades.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.