Super Micro Stock Rallies In Premarket Amid Ongoing Momentum, Retail Jumps To Bullish Camp

Super Micro Computer, Inc. ($SMCI) shares are on track to record their second consecutive session of gains, and the retail is slowly returning to the bullish camp.

In premarket trading, as of 9:06 a.m. ET, Super Micro stock climbed 3.91% to $43.65. If the premarket gains hold up, the stock is on track to open at its highest level since late October.

On Monday, Super Micro stock was up 28.68% at $42 by the close of trading, having touched an intra-day high of $44.15. Monday's rally came amid above-average volume, lending credence to the upward move.

The positive catalyst was a statement that the independent special committee instituted by the board found no evidence of misconduct on the part of the management or the board. The committee gave a clean chit to the board's audit committee, stating that it acted independently.

It added that Super Micro’s former auditor Ernst & Young’s resignation and the conclusions the firm stated in the resignation letter were not supported by the facts examined in the review.

Super Micro also said, as it said in the compliance plan filed with the Nasdaq on Nov. 18, it will be able to complete its annual report on Form 10-K for the year June 30, 2024, and the quarterly report on 10-Q for the September quarter. within the discretionary period available to the Nasdaq staff to grant. 

The company does not expect any restatements related to those delayed reports.

Commenting on the development, JPMorgan said that despite the findings, the committee made some recommendations, including the appointment of a new CFO to succeed the incumbent David Weigand and setting up new roles of chief accounting and compliance officer and general counsel, the Fly reported.

The firm said it remains sidelined on the stock until visibility on compliance improves. 

The next key developments to watch are whether the new auditor BDO accepts the committee’s findings or decides to undertake its review and whether the Nasdaq supported Super Micro’s request for an extension of time to regain compliance.

Retail sentiment toward Super Micro stock has improved to ‘bullish’ (55/100) from a ‘neutral’ a day ago, with message volume also improving to ‘high’ levels.

Technically, if the stock manages to fill the gap from late October, it could test a near-term resistance around the $50 level. On the downside, it has support around the 50-day moving average around $37.

Notwithstanding this year's checkered stock performance, Super Micro is still up about 48%, although it is trading way off the $122.90 intraday high reached on March 8.

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